With mortgage rates expected to drop below 6% in 2026, more buyers will reenter the market — making it an ideal time for homeowners to invest in value-boosting renovations. Key improvements that promise the strongest return include enhancing curb appeal, upgrading bathrooms and kitchens and creating more functional layouts. Exterior updates like new garage doors, entryways and siding can yield ROI exceeding 200%, while open floor plans and finished basements appeal to modern buyers seeking livable, flexible spaces. Luxurious, spa-like bathrooms and well-designed kitchens with islands or walk-in pantries continue to be top features that increase both comfort and resale value.
Homeowners are also prioritizing lifestyle-driven updates such as home offices, expanded outdoor spaces and aging-in-place or multigenerational layouts. Adding an accessory dwelling unit (ADU), for instance, can boost property value by up to 25%. Smaller improvements — from refinishing wood floors (147% ROI) to fresh paint and better lighting — can make a big impact with minimal cost. The takeaway for 2026: not every project pays off equally, so homeowners should focus on high-return, energy-efficient and versatile updates that match buyer expectations and improve daily living before selling.
