If You Aren’t Making These 9 Home Upgrades in 2025, You’re Making a Mistake

benedek / Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

The housing market in 2025 isn’t playing games. With high interest rates keeping people from moving and home prices that make your head spin, more homeowners are choosing to improve rather than relocate. But here’s the thing: not all home upgrades are created equal. Some will boost your property value and daily comfort, while others might as well be money thrown into a black hole. But how do you know the difference?

Well, look no further. We’ve identified the home improvements that actually matter in 2025. These aren’t just trendy upgrades that look good on Instagram. These are strategic investments that pay dividends whether you’re selling next year or staying put for the next decade.

Garage Door Replacement 

The 2024 Cost vs. Value Report named garage door replacement the No. 1 ROI (return on investment) home improvement project — averaging a wild 194% return nationwide. That’s not a typo. You can literally make money on this upgrade.

Why does this simple change pack such a punch? Upgrading your garage door also improves home security, reduces drafts and enhances the visual symmetry of your facade. It’s a small project with big rewards.

The investment is manageable, typically costing anywhere from $1,500 to $5,000 depending on your choice. For a relatively small cost, the impact on curb appeal is immediate and dramatic. In 2025, buyers are looking for move-in ready homes, and an updated garage door signals that the property has been well-maintained.

Smart Home Technology 

Smart homes aren’t a luxury anymore — they’re becoming a necessity. Smart home technology adds 3% to 5% to your property value. That’s $15,000 to $25,000 on a $500,000 home. Even better? Seventy-eight percent of homebuyers will pay more for a home with smart devices.

The best ROI smart upgrades for 2025 include:

• Smart thermostats
• Smart security systems
• Smart lighting
• Smart doorbells and locks 

Energy-Efficient Upgrades 

By installing high-efficiency windows, adding better insulation, upgrading your interiors and integrating Energy Star-rated appliances, you can significantly lower utility bills. These improvements hit the sweet spot of immediate savings and long-term value.

High-impact energy upgrades include:

• Insulation improvements
• Energy Star appliances
• Double-pane windows
• Smart HVAC systems 

Energy-efficient homes are in high demand, and buyers are often willing to pay more for properties that promise lower energy costs. Plus, many of these upgrades qualify for tax incentives, further improving your ROI.

Kitchen Refresh 

The kitchen is the heart of the home where friends and family love to gather. So a kitchen facelift is a must-have. Kitchen improvements can yield 70% to 80% ROI, but the key is being strategic about where you spend.

Smart kitchen upgrade priorities include:

• Quartz or granite countertops
• Stainless steel appliances
• Fresh paint or cabinet refacing
• Modern lighting fixtures (often the difference between dated and contemporary)

The secret is keeping the existing layout and plumbing to control costs while maximizing visual impact.

Bathroom Modernization 

Bathroom remodels consistently rank among the top value-adding projects. You don’t need a full gut renovation to see results.

Budget-friendly bathroom upgrades include:

• Updated fixtures (swap dated pieces for matte black or brushed gold finishes)
• Modern lighting
• Fresh tile work (focus on shower areas or create accent walls)
• Improved storage 

Even modest bathroom improvements can significantly influence buyer perception and increase your home’s appraised value.

Flooring Updates 

Outdated flooring is an eyesore for potential buyers. Replace older carpeting or tile with hardwood, engineered wood or luxury vinyl planks. Quality flooring sets the tone for your entire home.

Luxury vinyl plank (LVP) has become particularly popular because it’s durable, water-resistant and much more affordable than hardwood while still providing that upscale look buyers want.

Outdoor Living Spaces 

The outdoor living boom that started during the pandemic has not slowed. In 2025, homeowners are investing more in transforming their yards, patios and balconies into year-round extensions of the home.

Trending outdoor upgrades include:

• Deck or patio additions
• Fire pit installations
• Pergolas and covered areas
• Outdoor lighting 

The good news is that you can build a deck for around $3,600 to $7,200, and it’ll give you a 45% to 55% ROI. Not bad.

Exterior Paint and Curb Appeal

Fresh exterior paint, especially on trim and entryways, can instantly lift the look of your home. This is one of the most cost-effective ways to dramatically improve your home’s appearance.

Don’t forget pressure washing. It’s amazing how much difference a clean exterior makes for just a few hundred dollars.

Improved Lighting Throughout 

Lighting is everything. It can make small rooms feel spacious and transform dark nooks into inviting corners. Modern lighting trends for 2025 involve statement fixtures, sleek recessed lighting and dimmable switches for maximum flexibility.

Good lighting enhances every other upgrade you make while being relatively affordable to implement.

The Bottom Line on 2025 Home Upgrades

Some renovations just look nice. Others actually raise the value of your home. In this market, you want both. The upgrades on this list aren’t just about following trends. They’re about making smart investments that pay off whether you’re staying or selling.

Homeowners spent $472 billion on home renovations in the third quarter of 2024, and it’s only going up from there.Don’t let that money go to waste on improvements that don’t add value.

Start with the highest ROI projects like garage door replacement and smart home basics, then work your way through kitchen and bathroom refreshes. Focus on improvements that enhance both your daily life and your home’s marketability. And don’t wait until you’re selling to make them. You deserve to live somewhere fabulous that you love, too.

Share This Article: