Planning a renovation? Whether you’re upgrading for yourself or preparing to sell, it pays to know which projects deliver the best return on investment.
Here’s what the data says about home improvements in the Central NJ market.
The Top Performers
1. Minor Kitchen Remodel (75-80% ROI)
Notice the word “minor.” A complete kitchen gut doesn’t return as much as targeted upgrades:
- Refacing cabinets instead of replacing
- New countertops (quartz is the sweet spot)
- Updated appliances
- Fresh hardware and fixtures
Why it works: The kitchen is the heart of the home. Buyers in Millstone, Freehold, and Monroe notice it immediately, but they don’t necessarily need restaurant-grade everything.
2. Bathroom Remodel (70-75% ROI)
Bathrooms are second only to kitchens in buyer priority. Focus on:
- Modern fixtures and hardware
- Updated vanity and countertop
- New tile (especially flooring)
- Good lighting
Pro tip: Adding a bathroom where there isn’t one (like a half bath in a basement) can have even higher returns in the competitive Central NJ market.
3. Deck Addition (65-75% ROI)
Outdoor living space has become increasingly valuable, especially post-pandemic. A well-built deck:
- Extends your living area
- Creates entertainment space
- Improves curb appeal from the backyard
Material note: Wood decks typically have higher ROI than composite in terms of percentage, but composite lasts longer with less maintenance — an important consideration in our climate.
4. Basement Finishing (70% ROI)
Unfinished square footage is wasted potential. A finished basement adds:
- Livable space at a fraction of the cost of an addition
- Flexibility (office, gym, entertainment, guest room)
- Appeal to families who need more room
This is particularly valuable in Central NJ where home prices make every square foot count.
5. New Roofing (60-70% ROI)
A roof isn’t exciting, but it’s essential. Buyers don’t want to inherit roof problems, and a new roof:
- Eliminates a major concern from inspections
- Improves curb appeal
- Signals a well-maintained home
What Doesn’t Pay Off
Some projects feel like they should add value but often don’t return their cost:
- Swimming pools: Expensive to install, expensive to maintain, and many buyers see them as a liability
- High-end luxury finishes: That $50,000 kitchen might only add $30,000 in value
- Overly personalized choices: That bold paint color or unique tile might not appeal to buyers
- Over-improving for the neighborhood: A $100,000 renovation on the nicest house on the block won’t return
The Bigger Picture
ROI isn’t everything. If you’re planning to live in your home for 10+ years, your enjoyment matters more than resale value. A deck you’ll use every summer is worth more to you than the percentage it adds at sale.
But if you’re renovating with an eye on selling in the next few years, stick to the projects that pay back in the Central NJ market.
Ready to plan your renovation? Contact us for a free consultation on what makes sense for your home and goals. We serve Millstone, Freehold, Monroe Township, East Windsor, Manalapan, Cranbury, and all of Central New Jersey.