Do Garages Add to Home Value? The ROI of Upgrading Your Garage

Any upgrade you make to your garage is a sound long-term investment, right? Turns out, not so much. At least when it comes to the actual return on investment. Upgrading your garage can yield some impressive returns, but only if you put your money in the right places. 

In this article, we’ll unpack the data around which garage door upgrades give you the most and least bang for your buck. We’ll also pass along some valuable insights from garage and real estate professionals about what buyers look for in a garage, common mistakes homeowners make, and more.   

Why Garage Door Replacement Is the Smartest Investment for Homeowners in 2025?

According to Remodeling Magazine’s annual Cost vs. Value Report, the average ROI for garage door replacement in 2024 was a staggering 193.9%, up from 102.7% in 2023. Other winners include entry door replacement with an average 188.1% ROI, and manufactured stone veneer at 153.2%. There’s a marked ROI decline from there, with minor kitchen remodels coming in at 96.1%, vinyl siding replacement at 80.2% and HVAC conversion at 66.1%. 

Looking back over the last decade of the report’s findings, the biggest ranking dip garage door replacement has taken was to number 5 in 2015. It’s all uphill from there, though—the project took either the first or second spot since 2018. With all signs pointing toward continued ROI growth, 2025 is shaping up to be a good year to replace your garage door.

Benefits of Installing a New Garage Door

Aside from the positive ROI impact, installing a new garage door also delivers net positives in these areas: 

• Enhanced Curb Appeal: Swapping out a standard, no-frills door with a stylish new carriage house design or contemporary garage door adds a pop of personality and dramatically improves your home’s curb appeal. As Chris Gorman, broker and owner of Gorman Residential, puts it, “People typically buy on emotion, so anything that gets in the way of that connection gets in the way of the sale. One of the most important things to get right as a seller is curb appeal, and a garage door is an opportunity to make a statement.”
• Energy Efficiency: Older garage doors and their seals will degrade over time, exposing the garage and your home to the elements. New doors offer better insulation and improved weatherstripping, which can save you money on utilities over time.
• Improved Security: Most modern garage doors have reinforced panels, enhanced locking mechanisms, strong materials and other features that help increase the security of your home.
• Quiet Operation: Any grinding, clanging and vibrating you may have experienced with an older door won’t be an issue when you install a new unit.
• Potential Insurance Savings: The benefits above enhance the security and durability of your home, which decreases the likelihood of an insurance claim. Because of this, many insurance companies offer lower premiums for homeowners with new garage doors.

The 5 Best Garage-Specific Upgrades for ROI

We’ve seen how installing a new garage door stacks up against whole-home renovations. Now let’s take a look at how it compares to the seemingly endless garage-specific upgrades you could make. 

Runner-up only to garage door replacement is upgrading the electrical system and installing an electric vehicle charging station in your garage. Returns for this project vary widely across regions. In California, for example, the average ROI is a whopping 100% to 120%, thanks in part to the popularity of EVs in the state. Other regions have seen returns as low as 65% and 70%, but the average ROI falls to around 90%.

Practical upgrades designed to save homeowners money over time are also high on the list. Upgrading insulation and weatherstripping costs an average of $500 to $5,500, depending on the quality of materials and extent of construction, and has an average ROI of 75%. According to Reem Shai, owner at RJ Garage Door Service, “Demand for new garage door replacements and garage upgrades has risen as homeowners invest more in curb appeal and smart home upgrades. Energy efficiency, quiet operation and modern designs are top priorities. Storm-rated and insulated doors are also in high demand.”

Rounding out the top five are modular storage systems at 65% and epoxy floor coatings with an average ROI of 60%. “A clean and well organized garage can send an unspoken message to a prospective buyer that the home has been well maintained,” says Gorman. “To that end, epoxy coated floors are a popular feature and can add to the aesthetic.” 

What Are the Worst Garage Upgrades for ROI?

With an average ROI of around 45% to 60%, converting your garage into a living space is among the lowest performers in terms of recouping project expenses. Like other upgrades, the actual ROI depends on several factors. Buyers in the suburbs, for example, typically look to garages as either storage spaces or a place to actually park their cars. Converting your garage to a living space in the burbs, then, could not only end up hurting your ROI, but your ability to resell in general. “Most buyers would rather have the garage,” Gorman says. “Not to mention, garage conversions often have a DIY feel because that space was never meant to be livable, so it often doesn’t mesh with the overall floor plan and can throw off a buyer’s ability to understand how they’ll live in the home.”

Other low-ROI projects include niche upgrades like luxury finishes and permanent custom cabinetry. If the goal is creating your own very specific, very bespoke dream space, regardless of the costs, go for it. But if it’s to maximize your resale value, sticking to the proven winners and crowd-pleasing upgrades will help you come out on top. Actual returns vary widely and depend on factors like the local market and the priorities of homeowners in your area.

Zoning and Permitting: What Homeowners Need To Know

If you’re thinking about updating your garage but haven’t looked into your state’s zoning and permitting requirements, it’s time to take a step back. Depending on the nature of your project, failing to obtain the necessary permits could result in fines, denied homeowners insurance claims, lopsided appraisals and even stop-work orders issued by local authorities. 

“Some local codes require permits for structural changes or door replacements,” says Shai. “Homeowners should always check with their city or county first. HOA rules may also limit color, design or materials. Skipping permits can delay projects or lead to fines and rework.”

Visit your city or county’s website for more information on garage-upgrade-specific permitting requirements.

Understanding ROI: Calculating Your Return

Now that you’ve calculated your cost you’ll want to understand what the ROI of your investment will be. Most home improvement industry reports, including Remodeling Magazine’s Cost vs. Value Report, measure returns using a cost recovery formula. This approach reflects how much of the project’s cost you can expect to recoup in resale value: 

ROI% = (Estimated Value Added / Project Cost) x 100Calculating Your Return

Traditional ROI calculations, on the other hand—like the kind you might use to assess the profitability of a DIY project—represent your actual net gain relative to the investment. That formula looks like this:

ROI% = ((Estimated Value Added – Project Cost) / Project Cost) x 100

Using garage door replacement as an example, here’s what all of that looks like by the numbers: 

• Project Cost: $4,513
• Estimated Value Added: $8,751
• Cost Recovery ROI: 193.9%
• Traditional ROI: 93.9%

No matter how the data gets served up, there’s plenty of gold to be mined in your garage if you know which projects to prioritize and which ones to save for another day.    

How To Get Started With a Garage Upgrade

Your first priority should always be getting familiar with your city and state’s building codes, regulations and permit requirements. From there, you’ll need to decide if the project is a DIY candidate or if you’re better off hiring a professional. Any DIY upgrade takes time, and mistakes can happen. If your project is straightforward and doesn’t require electrical or spring work, going the DIY route can be a good use of your time and save you some cash.

Keep in mind, however, that professionals carry liability insurance. This means if any damage occurs to your property during installation, their policy should cover it. Labor and some parts should also be covered under a service provider’s warranty. 

Turning things over to the pros? Garage.com will put you in touch with licensed garage professionals in your area. They’ll come to your home, walk through the scope of work with you and provide a detailed estimate either on-site or shortly after.

Frequently Asked Questions About the ROI of Upgrading Your Garage