Homeowners across Canada often ask the same question: “If I spend money on renovations, will I get it back when I sell my home?” The truth is, not all renovations are created equal. Some upgrades boost your property value dramatically, while others cost a fortune but add little resale value.
In this guide, we’ll explore which renovations yield the best return on investment (ROI) in Canadian real estate markets, how much they typically cost, and tips to help you budget smartly. Whether you’re planning to sell soon or just want to increase your home’s long-term value, these insights will help you prioritize the right projects.
Why Renovation ROI Matters
Renovations serve two purposes: improving your lifestyle today and enhancing your resale value tomorrow. But in Canada’s competitive housing market, overspending on the wrong upgrades can mean losing thousands when it’s time to sell.
Understanding ROI helps you:
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Prioritize projects that buyers actually value.
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Avoid over-improving beyond your neighbourhood’s standard.
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Maximize profit if selling is on the horizon.
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Balance lifestyle and financial goals if you plan to stay longer.
Renovations With the Best ROI in Canada
1. Kitchen Remodels (ROI: ~75%-100%)
The kitchen is the heart of the home, and buyers pay attention to it first. A modern, functional kitchen can make or break a sale.
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Cost Range: $13,000 – $40,000+ depending on size and finish.
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Best Value Moves:
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Refacing or painting cabinets instead of replacing.
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Installing quartz or granite countertops.
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Upgrading hardware, faucets, and lighting.
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Adding energy-efficient appliances.
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Tip: Avoid luxury finishes that outpace your neighbourhood. A modest, well-done kitchen refresh often has a higher ROI than a $100k gourmet overhaul.
2. Bathroom Renovations (ROI: ~60%-100%)
Bathrooms sell homes almost as much as kitchens. A clean, modern bathroom adds instant appeal.
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Cost Range: $7,500 – $25,000+.
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High-ROI Upgrades:
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New vanity with stylish sink.
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Walk-in shower with glass doors.
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Updated tile, lighting, and fixtures.
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Low-flow toilets for eco-friendly appeal.
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Tip: Focus on functionality and cleanliness. Even small updates like re-grouting tiles or replacing mirrors can boost value.
3. Curb Appeal Improvements (ROI: often 100%+)
First impressions matter. Simple exterior upgrades can deliver the biggest bang for your buck.
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Cost Range: $2,000 – $10,000 depending on scope.
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Best Projects:
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Fresh exterior paint or siding repair.
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New front door or garage door.
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Landscaping: trimmed lawn, flowers, shrubs.
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Outdoor lighting for safety and beauty.
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Tip: Buyers form opinions in the first 10 seconds. A small investment in curb appeal often adds more value than an expensive interior upgrade.
4. Windows, Doors & Energy Efficiency (ROI: ~50%-80%)
With energy costs climbing, efficiency upgrades are more attractive than ever.
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Cost Range: $10,000 – $25,000+ for whole-home window replacement.
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High-Value Moves:
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Energy-Star certified windows.
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Insulated front doors.
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Upgraded insulation in attics/basements.
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Bonus: Many provinces offer rebates or tax credits, improving net ROI.
5. Finished Basement (ROI: ~50%-75%)
A finished basement adds usable living space, which Canadian buyers value highly, especially in urban markets.
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Cost Range: $30,000 – $75,000+.
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Smart Uses:
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Rental suite (with permits).
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Home office or gym.
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Family rec room.
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Tip: Ensure proper waterproofing and permits. Illegal or poorly finished basements can hurt resale value instead of helping it.
6. Paint & Small Updates (ROI: often >100%)
Sometimes, the cheapest fixes bring the best returns.
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Cost Range: $1,000 – $5,000 for a whole-home refresh.
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Biggest Impact:
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Neutral paint colours.
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Updated light fixtures.
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Modern door handles and cabinet pulls.
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These small details give homes a fresh, move-in-ready feel.
Renovations With Poor ROI
Not every renovation pays off. Homeowners often overspend in areas buyers don’t value.
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Luxury features (steam showers, wine cellars, smart-home gadgets) often cost more than buyers are willing to pay.
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Swimming pools rarely recover costs in Canada due to maintenance and climate.
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Over-customized spaces (theatre rooms, exotic finishes) appeal to fewer buyers.
Rule of thumb: If it suits your lifestyle and you’ll stay long-term, go for it. If you’re selling soon, stick to mainstream, widely desired upgrades.
How to Budget Smartly
Renovations can easily spiral out of control. Here’s how to keep your investment in check:
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Set a clear budget. Decide how much you can spend without over-leveraging.
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Get multiple quotes. Prices vary widely; compare at least 3 contractors.
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Prioritize high-impact rooms. Kitchens, bathrooms, and entryways matter most.
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Plan for 10-15% extra. Hidden costs (permits, repairs) almost always arise.
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Balance lifestyle vs resale. If selling soon, focus on buyer appeal. If staying, include lifestyle upgrades.
Regional Differences in Canada
Renovation ROI can vary by city or province:
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Toronto & Vancouver: Buyers value modern kitchens/bathrooms and finished basements due to high real estate prices.
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Calgary & Edmonton: Energy efficiency (windows, insulation) is a strong selling point in cold climates.
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Smaller towns: Simple curb appeal upgrades (doors, siding, landscaping) often deliver the best returns.
Always research comparable homes in your neighbourhood to avoid over-improving.
Final Thoughts
Renovating your home can be exciting—but also expensive. By focusing on high-ROI projects like kitchens, bathrooms, curb appeal, and energy efficiency, you can stretch every dollar further. Remember, buyers in Canadian markets are looking for move-in ready, efficient, and well-maintained homes.
Whether you’re preparing to sell in the next year or planning for the long haul, the smartest approach is to renovate strategically, not emotionally. Your wallet—and your future buyer—will thank you.