Garage Door Replacement Tops the 2024 Cost vs Value Report

In the 2024 Cost vs. Value Report, one project stands out as offering the best return on investment (ROI) in the current market: garage door replacement. This project not only tops the list in terms of ROI but also represents a broader trend in home improvement focused on maximizing curb appeal and cost efficiency.

For home services companies, understanding why garage door replacement delivers such strong returns—and how this insight fits into broader market trends—can help them better serve their clients and boost business.

Source: https://www.remodeling.hw.net/

Garage Door Replacement: The Undisputed Leader in ROI

According to the 2024 report, replacing a garage door delivers an average ROI of nearly 200% (up from 103.5% last year), making it the single most valuable home improvement project in terms of resale value. This staggering return can be attributed to several factors, including relatively low costs, quick installation, and the immediate visual impact a new garage door has on a home’s exterior.

With the current housing market showing limited inventory and high mortgage interest rates, many homeowners are opting to stay put and invest in improving their existing homes rather than moving. A new garage door is a cost-effective way to refresh the look of a property, which can be particularly appealing to potential buyers. It’s often the first thing someone notices when they approach a house, making it a small change that can significantly influence the perceived value of the entire home.

Serving as the VP of Marketing at Mesa Garage Doors for the past 8 years, I see firsthand everyday how replacing a garage door completely transforms the look of homes throughout Southern California, while at the same time, offering one of the best returns on investment in the market. It’s a simple yet powerful upgrade that increases curb appeal, enhances security, and adds to the overall value of the property. The numbers in the 2024 report reflect what I’ve always known: garage door replacement is a super smart, cost-effective choice for homeowners.

Exterior Projects Drive the Highest ROI

Beyond garage door replacements, exterior upgrades continue to dominate the top of the ROI rankings in 2024. Steel entry doors, for example, also deliver nearly 200% ROI, while projects like manufactured stone veneer installations yield returns above 150%.

For home services providers, these findings reinforce the importance of focusing on curb appeal. Exterior projects are typically less disruptive than interior remodels and offer visible, tangible improvements that potential buyers and homeowners appreciate. In a market where first impressions matter, these projects can significantly boost a home’s value and marketability.

Regional Variations: Tailoring Services to Local Markets

The 2024 report highlights significant regional differences in project costs and values. For example, the Pacific and New England regions consistently show the highest returns on remodeling projects, while regions like the East North Central and East South Central lag behind in ROI.

For home services companies, this means it’s essential to understand local market dynamics. What works in one region may not be as effective in another. By tailoring offerings to meet regional needs, businesses can ensure they’re providing the best value to their clients. For instance, homeowners in the Pacific region might prioritize exterior upgrades, while clients in the Midwest might focus on energy efficiency improvements.

Source: https://www.remodeling.hw.net/

Energy Efficiency Upgrades: A Decline in ROI but Long-Term Potential

Energy-efficient upgrades, such as converting fossil-fuel-based HVAC systems to electric heat pumps, have seen a dip in ROI in 2024. Last year, these projects ranked highly, but they’ve since fallen to lower positions, with a significant drop in return, now averaging around 66% ROI.

However, this doesn’t mean these projects should be ignored. With increasing environmental concerns and future government incentives under legislation like the Inflation Reduction Act, energy-efficient upgrades are poised to become more valuable in the long run. Home services companies should be prepared to explain these long-term benefits to clients, particularly as energy costs fluctuate and sustainability becomes a growing concern for homeowners.

The Rise of ‘Smaller’ Yet High-Impact Projects

Amid rising construction costs and ongoing economic uncertainty, many homeowners are scaling back from large, full-scale remodels to smaller, high-impact projects. These include focused updates to kitchens and bathrooms, minor exterior enhancements, and phased remodeling plans that spread costs over time.

For home services providers, this trend offers an opportunity to package services in more flexible, affordable ways. Rather than pushing for large-scale renovations, companies can market smaller, budget-friendly projects that deliver visible results quickly. This approach not only helps attract cost-conscious clients but also allows businesses to maintain steady work by offering incremental updates over time.

The Definitive Turnaround: Rising Project Values Post-Pandemic

One of the most significant findings of the 2024 Cost vs. Value Report is the clear recovery in project values post-pandemic. After several years of market disruptions, the average ROI for key remodeling projects has increased by 5.2%, signaling a strong rebound.

For home services companies, this turnaround presents a promising landscape. As homeowners regain confidence in the value of remodeling, service providers have an opportunity to capitalize on this renewed interest. Whether through exterior improvements, energy-efficient upgrades, or smaller-scale projects, there is a clear demand for remodeling services that enhance both the functionality and aesthetic of homes.

Maximizing Opportunities Heading into 2025

The 2024 Cost vs. Value Report provides critical insights that can help home services companies navigate the evolving market and prioritize high-ROI projects. With garage door replacements leading the charge and exterior projects continuing to deliver strong returns, businesses that focus on these areas will be well-positioned to succeed.

By staying attuned to regional variations, offering energy-efficient solutions, and embracing smaller, budget-friendly projects, home services providers can meet the needs of today’s homeowners while ensuring long-term profitability. The market is shifting, and those who adapt will thrive in this competitive environment.

Garage Door Replacement Tops the List: Key Insights from the 2024 Cost vs. Value Report