Whether you are designing a new build or renovating your existing home, where you allocate your budget influences comfort, aesthetics, and return on your investment. Here are the top eight new home upgrades with the best ROI in 2025 to include on your list.
1 Add Curb Appeal
Curb appeal is the best way to make a powerful first impression and yield good ROI. According to the 2024 Cost vs. Value report, curb appeal tops home upgrades with the highest ROI for homeowners.
The most lucrative curb appeal investments include garage and exterior door upgrades and manufactured stone veneer.
To enhance the aesthetics of the curb appeal, softscaping (native trees, plants, and flowers are best) and hardscaping (walkways and front porches) should be included to have the most impact. Remember lighting for safety and to highlight prominent features of landscape design.
2 Design a Home Office
Having a home office is a trend that started during the pandemic and has continued to grow. According to HR company Robert Half, remote work is one of the top criteria for job hunters in 2025, so having space to work remotely at home is in demand.
The perfect place for a home office is at the front of the home, ideally removed from the rest of the household, with a door that closes. Not all floor plans allow this placement, so converting a flex room or a spare bedroom with multi-functional furniture that switches up on demand is a good compromise.
A must in a home office is smart storage, adequate electrical outlets, and, ideally, a window. Choose a comfortable desk and chair. A home office, particularly if tucked away from the rest of the home, is a great place to experiment with bolder colors, wallpaper, or statement artwork.
3 Transform With Paint
Painting your home remains one of the easiest, most affordable, and most effective ways to transform your home and top ROI consistently year-over-year.
While neutrals are traditionally the safe choice for homeowners intending to sell or for decor longevity, new trends featuring bold colors and encouraging self-expression are shifting expectations. One place where color is trending is in the kitchen.
“Design has headed in a direction that honors the individual much more than the collective. Rules are not necessarily linear anymore,” says Gladys Schanstra, owner and creative director of Drury Design, adding that while homeowners still value neutral palettes, a growing number appreciate the beauty of moody colors and patterns.
The key is applying color and accents as part of an overall strategy to curate and balance the aesthetic. Consumers now have an open mind to color when house shopping as long as the design is crisply executed.
4 Finishing The Basement
Finishing the basement is an upgrade that offers financial and lifestyle benefits. According to Angi.com, finishing your basement generates 70-75% ROI
Having a finished basement adds usable square footage. It allows you extra beds, baths, storage, and hobby space, such as a home gym, media room, or golf simulator.
If you are buying a new build, this upgrade is convenient during construction, and many builders offer this as an upgrade incentive. However, if it is easier on the budget or you are unsure how you’d like to design the lower level, this is something to earmark for DIY down the road.
5 Create Income-Generating Spaces, or Re-Think Your Existing Ones
For today’s homeowners, affordability is an ever-present concern, so upgrades and designs that make homeownership more affordable are a priority.
One way to assist with affordability is to find ways to generate income from your home, whether adding an accessory dwelling unit (ADU) or creating a rental suite within your main home. Not only does this benefit you while you own your home, but it also creates resale opportunities down the road, as this style of home design will appeal to multi-generational and blended families and single families looking for income opportunities.
Look for a flexible space similar to the floor plan offered in NewHomeSources’ 2025 Virtual Concept Home. Also, think about other ways that your home might be able to generate income, from parking spaces to renting out your backyard pool, and include that in your design plan.
6 Eco-Friendly Upgrades
You can’t go wrong with eco-friendly upgrades that offer financial benefits and help the planet simultaneously.
Upgrading windows is always a wise choice. Windows are holes in the building envelope, so reinforcing them with double or triple-pane glass offers good ROI and reduces heating and cooling costs.
Energy-efficient appliances are a priority for many homeowners and homebuyers who seek sustainability at home. Look for Energy Star-rated appliances and appliances made from recycled materials.
Upgrading fixtures and faucets to low-flow and/or touch-activated in kitchens and baths will reduce your water use, save you money, and help reduce your footprint. As a bonus, updating fixtures is a cheap, sleek way to enhance the aesthetic.
Investing in a tankless water heater is a smart choice with multiple benefits. “Tankless water heaters provide on-demand hot water while saving homeowners money on energy bills. The compact design frees up space and offers long-term durability and reliability, making it a desirable option for modern buyers,” says Kaitlyn Clift, marketing coordinator, Brightland Homes at Westerly.
7 Boosted Backyards
As homeowners look to enhance entertainment opportunities at home, the backyard is the perfect place to invest in upgrades.
Buoyed by the trend of fostering indoor/outdoor connections, homeowners are creating outdoor living spaces resembling indoor rooms, such as an outdoor living/dining room and kitchen. Outdoor kitchens can be as small as an affordable, movable cart to full-scale built-in kitchens with plumbing, stonework, and electrical.
“A covered patio or deck extends living space and makes the home more appealing for entertaining,” says Tina Dinkel, director of sales of McStain Neighborhoods; building a multi-purpose deck is one of the top ROI upgrades listed in the Cost Vs. Value report, with both composite and wood proving profitable.
An inexpensive and highly sought-after backyard upgrade is a fire pit. From wood burning to gas-powered, a fire pit is a great place to relax with friends and family, enhancing the overall entertaining experience.
8 Create More Storage
“‘I have too much storage,” said no homeowner ever. Not only is this an upgrade that will appeal to future buyers, but it will also greatly enhance the functionality of daily living.
Do a room-by-room audit to see where you can reduce clutter. Pay special attention to the foyer, laundry, and bedrooms. In the kitchen, focus on concealed and built-in storage, such as pull-out drawers, cutlery dividers, and pot-and-pan drawers. Oversize pantries are trending, too, with room for small appliances and easy access to often-used ingredients.
