Wondering which home improvements pay off and which ones are just expensive hobbies?
Here’s the definitive ranking of home improvements by ROI, based on real Toronto market data. No fluff, no wishful thinking – just cold, hard numbers that’ll help you spend your renovation dollars wisely.
Whether you’re renovating for your own enjoyment or updating your home before listing it for sale, here’s what you need to know about the ROI of home renovations in Toronto.
Related: How to Avoid Getting Ripped Off By a Contractor
Home Renovation Data
| Renovation Project | Average Toronto Cost (2025) | ROI Range | Key Notes & Strategy |
|---|---|---|---|
| Interior Painting | ~$10,000 (2,000 sq.ft.) | ~60% ROI | Highest impact for lowest cost. Use neutral, light colours. Buyers mentally deduct for “needed painting” |
| Minor Kitchen Refresh | $15,000–$25,000 | 75–100% ROI | Paint cabinets, new counters, hardware, appliances. Avoid full gut jobs unless necessary |
| Flooring Upgrades | $5–$20/sq.ft. | 50–150% ROI | Replacing carpet with hardwood/laminate often adds more value than cost. Avoid exotic materials |
| Bathroom Refresh | $10,000–$20,000 | 62–75% ROI | Modern fixtures, neutral tiles, good lighting. Don’t overdo luxury finishes |
| Window Replacement | ~$15,000 full house | 75–80% ROI | Energy efficiency appeals to Toronto buyers. Vinyl windows offer best ROI vs. premium materials |
| New Front Door | ~$2,500 | 75–100% ROI | Huge curb appeal impact for small investment. Steel/fiberglass best for durability |
| Mid-Range Kitchen Reno | $25,000–$50,000 | ~75% ROI | New cabinets, appliances, countertops. Essential in most Toronto homes. Don’t exceed $50k |
| Basement Finishing | $45,000–$70,000 | ~70% ROI | Adds living space. Legal suite can add $100k+ value. Below-grade valued at ~50% of above-grade |
| Roof Replacement | $8,000–$12,000 | 70–80% ROI | Prevents value loss more than adding value. Bad roof kills sales. (Houses only) |
| Insulation & Air Sealing | $3,000–$10,000 | 65–75% ROI | Lower utility bills appeal to buyers. Qualifies for major Ontario HRSP rebates (up to $8,900) |
| Exterior Paint/Siding | $5,000–$30,000 | 50–75% ROI | Curb appeal focus. Address obvious problems rather than complete overhauls |
| Upscale Kitchen Reno | $50,000–$100,000+ | 50–70% ROI | Diminishing returns kick in. Only for luxury homes where high-end finishes expected |
| Upscale Bathroom Reno | $20,000–$50,000 | 45–70% ROI | Lower percentage returns due to high luxury material costs. Focus quality over extravagance |
| Smart Home Tech | $200–$2,000/device | 3–5% home value | Improves marketability, appeals to tech-savvy buyers. Best: thermostats, security, lighting |
| Heat Pump Installation | $10,000–$15,000 | 50–80% ROI | Energy savings + rebates (up to $5,000) improve effective ROI. Future-proofing value |
| Interior Doors/Trim | $250/door + trim costs | ~50% ROI | Subtle improvement in overall feel. Quality matters – cheap work backfires |
| Swimming Pools | $50,000+ in-ground | Low/Negative | Many buyers see as maintenance burden. Only valuable in high-end areas where expected |
| Elaborate Landscaping | $10,000–$50,000+ | <50% ROI | Focus on basic curb appeal instead. Many buyers worry about maintenance requirements |
| Ultra-Luxury Upgrades | $100,000+ kitchens, etc. | Low ROI | Overcapitalization risk. Spending beyond neighbourhood support levels |
| Highly Personal Projects | Varies widely | Low ROI | Themed rooms, hobby spaces, unconventional layouts. Narrow buyer appeal |
Key Insights:
- Neighbourhood matters: ROI varies significantly by area. Research local comparables before investing.
- Quality counts: Poor workmanship can hurt value. Don’t cut corners on installation.
- Timing strategy: Selling within 1 year? Focus on ROI Champions only.
- Luxury trap: High-end homes often see lower ROI percentages due to expensive materials.
- Rebate opportunity: Ontario’s HRSP program can reduce energy improvement costs by up to $8,900.
Sources:
- Canadian real estate and appraisal data on renovation payback (Appraisal Institute of Canada and RE/MAX studies)
- Toronto-specific renovation cost guides and market analysis
- NerdWallet Canada (2025) on renovation trends and ROI factors
- Government of Canada and Ontario official program announcements
IMPORTANT: The Neighbourhood Factor
ROI isn’t universal – it depends heavily on your neighbourhood’s characteristics:
High-ROI Neighbourhoods:
- Active resale markets with frequent turnover
- Mix of original and renovated homes (proving the market accepts premiums)
- Strong buyer demand consistently
- Price points that support renovation costs
Lower-ROI Areas:
- Neighbourhoods at price ceilings
- Areas with declining demand
- Markets where most homes are already updated
- Price points where renovation costs exceed buyer budgets
Pro TIp: Compare recent sales of renovated vs. unrenovated homes in your specific area. The difference tells you the maximum renovation premium buyers will pay.
The BREL Bottom Line
The highest ROI improvements are often the least glamorous: paint, flooring, minor kitchen updates, and basic maintenance. The projects that make you feel like a renovation TV star – pools, luxury baths, elaborate outdoor kitchens – usually deliver the lowest returns.
The Golden Rule: Renovate to the level your neighbourhood supports, not beyond it. A $50,000 kitchen renovation makes sense in a $1.2 million home. The same renovation in a $600,000 home is probably too much.
Most importantly, remember that ROI calculations assume normal market conditions and quality execution. Poor workmanship or market downturns can turn even “high-ROI” projects into money losers.
Renovate smart, spend wisely, and always keep one eye on what buyers actually want – not what renovation shows tell you they should want.