ROI of Remodeling in San Diego: Which Projects Add the Most Value?
When you put money into your home, you want to know you’ll get it back when you sell. This means understanding the return on investment (ROI) of all types of home renovations.
ROI measures the value home remodeling projects add to your property compared to their cost. In other words, a high-ROI project gets you more for your dollar and helps you come out ahead when it’s time to sell.
If you live in San Diego County, you’re likely thinking about ways to boost your property’s value, just like most other homeowners.
San Diego is one of the top large U.S. metros investing the most in home improvements, according to Construction Coverage. It’s a competitive market, and everyone wants to make sure their remodeling projects are worthwhile.
So, which home improvement projects would most benefit your house’s value? Here’s what you need to understand about securing a high return on investment from San Diego home improvements.
What You Should Know About Remodeling in San Diego
When it comes to the return on investment, some projects now offer the highest return values in history. In fact, some home upgrades are averaging returns of nearly 200% for the first time, according to the 2024 Cost vs. Value report from Zonda Media.
However, not all home upgrades make that big of a difference in your financial health.
In San Diego, home renovation ROIs can be influenced by many factors, including local neighborhood trends, buyer expectations, and the types of amenities that attract homebuyers.
As you plan out ways to improve your home’s value, you’ll need to consider aesthetic preferences as much as you do material costs and real estate trends.
Our suggestion? Consult with a home improvement expert. This is the best strategy for familiarizing yourself with the San Diego market and estimating accurate ROI rates for different projects.
Local companies such as Caliber Construction & Remodeling can provide insights into the features most sought after by buyers, current housing trends, and how to tailor your renovations to fit San Diego’s tastes.
If you’re just in the initial stages of deciding what to do with your home, we’re here to help. Keep reading to learn about some of the highest ROI projects you can schedule for your San Diego property.
Kitchen Remodeling Projects: High ROI Potential
The kitchen is often referred to as the “heart of the home,” and for good reason. In San Diego, where social gatherings and family activities are central to our culture, a well-designed, modern kitchen can significantly boost home value.
Compared to other home improvement projects, kitchen remodels are some of the most effective projects for ROI. Zonda’s 2024 Cost vs. Value Report estimates a 96% cost recovery for a minor kitchen remodel and about 49% for a major kitchen remodel.
But what do San Diego residents care about in their kitchens? Let’s look at some popular renovation projects.
San Diego-Specific Kitchen Trends
Open-Concept Layouts
As far as home improvement projects go, opening up space is usually a smart choice.
According to the latest “What Home Buyers Really Want” report from the National Association of Home Builders, more than 80% of homeowners want at least a partially open kitchen and dining room setup. About 79% want the same for the kitchen and family room, and 70% want a connected dining and family room.
Open floor plans remain especially desirable in San Diego, where residents appreciate the ability to entertain guests and create seamless indoor-outdoor flow.
Quality Materials
Another big trend in San Diego is investing in high-quality, moisture-resistant materials. These are crucial in coastal areas, given the sea air that can impact certain finishes. Rust-resistant quartz countertops, custom cabinetry, and stainless steel appliances are popular choices amongst homeowners and renovators.
Energy Efficiency
Adding energy-efficient appliances can also make your San Diego kitchen remodeling project more appealing. With California’s emphasis on sustainability, energy-efficient kitchens are a major selling point.
If you really want to increase your return on investment with energy-efficient upgrades, look into state rebates and tax credits. The California Energy Commission is a great place to start.
Bathroom Renovations: A Close Second
While home improvement projects in the kitchen often yield the highest ROI, bathroom remodels closely follow. Buyers in San Diego tend to look for bathrooms that provide comfort and a spa-like experience, making even modest updates impactful.
Consider bathroom renovations such as enlarging the space, replacing and modernizing fixtures, and upgrading materials. If you’re questioning the value of these upgrades, know that more than 25% of realtors recommend upgrading the bathroom before placing a home on the market.
Let’s take a look at what San Diego homeowners care about in their bathrooms.
Popular Bathroom Upgrades in San Diego
Modern Fixtures
Replacing outdated fixtures with modern, water-efficient versions not only updates the look but also aligns with California’s water conservation efforts.
According to a 2024 report by Remodeling Magazine, a mid-range bathroom remodel, including updating all fixtures, adding a new toilet, and replacing the tub or shower, typically recoups about 74% of its cost value.
Luxury Touches
This is San Diego, and you know we love our luxury additions. Heated floors, frameless glass showers, and soaking tubs add a touch of opulence that appeals to buyers looking for an upscale experience.
Eco-Friendly Home Improvements
Low-flow toilets, LED lighting, and sustainable materials aren’t just environmentally responsible ー they also resonate well with our local demographic. Keep in mind that Rocket Homes ranks San Diego as the second most sustainable city in the United States, so this is definitely something future homebuyers will care about.
ROI Insights on Bathroom Renovations
Nationally, Angi reports that the average ROI on a bathroom remodel is about 72.7%. That means for every dollar you spend improving your bathroom, you’ll see an estimated $1.72 increase in the overall value of your home.
Wondering how to make sure you get that 72% ROI? Talk to a local contractor who can point you toward the most valuable design trends and upgrades for your space.
Outdoor Spaces: Curb Appeal and Value Boosters
San Diego’s year-round pleasant weather makes outdoor living spaces a key selling point for homes. Decks, patios, and landscaped yards enhance the livability of the property and contribute to higher resale value.
“Historically, the exterior replacement projects tend to do much better at increasing home sale prices than discretionary indoor projects,” Clayton DeKorne, Chief Editor at JLC Group, told Bankrate. “The replacement projects contribute to a home’s curb appeal, which affects a buyer’s first impression.”
In our experience, some outdoor upgrades carry more weight than others. Let’s talk about a few of the highest ROI options.
Key Outdoor Home Improvements in San Diego
Outdoor Kitchens and Fire Pits
These additions transform backyards into functional extensions of the home, perfect for entertaining. They are especially popular in coastal neighborhoods like Point Loma and Mission Beach.
HGTV estimates that the average return on investment for an outdoor kitchen is anywhere from 55% to 200%, depending on where you live and the materials used. In temperate climate like San Diego, you’re likely looking at an ROI closer to the higher end of that estimate.
Sustainable Landscaping
Using drought-resistant plants and artificial turf can reduce maintenance and water usage, appealing to buyers aware of California’s water conservation challenges. Before starting any landscaping updates, check out the San Diego Sustainable Landscape Guidelines.
Decks and Patios
According to Prevu Real Estate, homes in San Diego often feature a large backyard or open patio space. The most luxurious properties might even blend the indoor and outdoor spaces.
Whether you’re looking to bring the outdoors inside or simply add a more functional patio, this kind of renovation can have a significant ROI. Look into using outdoor construction materials that can withstand San Diego’s sunny and salty air and hold their value for many years to come.
Expert Insights
As Norada Real Estate reports, homebuyer preferences in San Diego are shifting. With more people working from home (part-time or full-time), buyers are increasingly prioritizing space and amenities.
Enhancing your home’s outdoor space is an excellent way to give these shoppers what they want and boost the overall usability and appeal of your home.
Energy Efficiency Upgrades: Saving Money and Adding Value
In California, energy efficiency is more than a trend—it’s a priority. The state even launched an $80 million home clean energy rebate program in 2024 to support this initiative.
San Diego homeowners who invest in energy-efficient upgrades can enjoy lower utility bills while increasing their home’s appeal to environmentally conscious buyers. Consequently, Energy Sage reports residential energy efficiency is an investment that yields financial benefits in the form of both immediate month-to-month savings and future profits when the house is sold.
More About California’s Green Energy Incentives
California offers a broad range of green energy incentives, making it easier for residents to adopt renewable solutions and reduce costs. These incentives include solar tax credits, net energy metering, low-income assistance programs, and financing options that are particularly beneficial for homeowners in San Diego and throughout the state.
One of the most popular programs is the Residential Clean Energy Credit (formerly the federal ITC), which offers a 30% tax credit for the cost of a solar energy system, including installation. This credit can be applied to federal taxes, making it accessible to many Californians.
For financing, California is one of the few states offering Property Assessed Clean Energy (PACE) Financing, which lets homeowners finance renewable energy upgrades without an upfront payment, with the loan repaid through property taxes.
All of these make it easier for homeowners to prioritize energy-efficient home renovations. The question is, which ones offer the best ROI?
High-Value Energy Upgrades in San Diego
Energy-Efficient Windows
Dual-pane windows with low-E coatings help maintain indoor temperatures, reducing energy costs. These windows are especially valuable in areas with direct sunlight, like North Park and Clairemont.
Insulation Upgrades
Adding or upgrading insulation can be a significant investment that helps manage San Diego’s warm climate and reduce cooling expenses. This is something you can appreciate while living in the home, but it’s also something future buyers will appreciate.
Smart Home Features
Adding smart home features is a valuable upgrade that can enhance a property’s appeal and market value. Smart systems—such as automated lighting, security, and climate control—offer homeowners greater convenience, energy efficiency, and security, which are all highly desirable to today’s buyers.
Home Additions: More Space, More Value
Another lucrative home renovation option is expansion. Adding square footage through home additions, such as new bedrooms, expanded living areas, or accessory dwelling units (ADUs), is a popular way to increase a property’s value in San Diego.
With the demand for flexible living space and housing options rising, ADUs offer potential rental income and versatility.
ROI and Market Factors
ADUs, also known as granny flats or in-law suites, have become a smart investment, rising sharply in popularity since 2020. Homes with ADUs are in high demand, often commanding resale prices up to 35% higher than those without, according to Porch.com.
With an estimated 100,000 new ADUs being added yearly, these additions provide both increased property value and flexibility for homeowners—whether for personal use, housing family members, or generating rental income.
San Diego Zoning Laws
If you’re considering adding an ADU, you’ll need to understand local zoning and permitting laws. San Diego’s progressive regulations for ADUs make it easier to build these structures, which can significantly boost property value and rental opportunities.
Small Projects with Big Returns in San Diego
If a major renovation isn’t in your budget, smaller projects can still provide a high ROI. These quick upgrades are impactful but can help you avoid spending money. Let’s talk about some of the most bang-for-your-buck projects you can tackle in San Diego.
High-ROI Small Projects
Garage Door Replacements
According to CNBC, garage door replacements offer some of the highest average returns at 194%. For only a couple thousand dollars (or potentially even less), you can upgrade your home’s exterior to be more appealing and modern.
Front Door Upgrades
Replacing the front door — with, specifically, a steel one — has jumped this year to a 188% ROI, up from 100% in 2023 (Bankrate). This kind of addition can boost your home’s curb appeal and energy efficiency almost immediately.
Minor Cosmetic Updates
Simple changes like painting, updating lighting fixtures, and replacing cabinet hardware can make a home feel new and attract more buyers without the cost of a full renovation. Prioritize what your home needs most and focus on high-value, expedient enhancements.
Working with Local Experts for Maximum ROI
If you’re putting money into any home renovation, whether it’s a minor bathroom update or a full kitchen remodel, you want to know it’s going to be done right.
That’s why it’s important to partner with a reputable local contractor like Caliber Construction and Remodeling.
Our knowledge of San Diego’s real estate market, local regulations, and trending design features helps us confirm and enhance the value of every project we take on. With decades of experience, Caliber Construction guides property owners in choosing home renovations that align with market demand and deliver optimal returns.
We’re Ready to Start Your Strategic Home Renovations
Strategic home improvements can significantly enhance the value of your San Diego property. Whether your house is new or old, there are targeted projects that can boost its worth without breaking the bank.
To ensure that your remodeling project delivers the best ROI, consult with the pros at Caliber Construction and Remodeling. Contact us today to schedule a personalized consultation and take the first step.
ABOUT THE AUTHOR
Caliber Construction
Caliber Construction & Remodeling is a San Diego based design build contractor specializing in whole home renovations, kitchens, bathrooms, and ADUs. Led by a female owned team, the company focuses on thoughtful design, quality craftsmanship, and a clear process from start to finish.