Do Garages Add to Home Value? The ROI of Upgrading Your Garage
New 2025 data shows why garage door replacement delivers one of the highest ROIs in home improvement and what buyers notice first when evaluating a home.
By: Abby Drexler | Published: February 9, 2026
Garage upgrades can improve daily use, but very few consistently deliver meaningful resale value. In 2025, one project stands clearly above the rest.
New data show that garage door replacement delivers the highest return on investment of any major home improvement, with returns rising sharply in just two years. More importantly, real estate and garage industry experts say the garage door has become a key signal of a home’s overall condition, efficiency, and care, often shaping buyers’ perceptions before they step inside.
Below, we break down what’s driving the spike in ROI, why buyers pay closer attention to garage doors than many other upgrades, and what today’s buyers actually look for when evaluating a garage.
Key Takeaways
- Garage door replacement delivered an average ROI of 268% in 2025, the highest return of any major home improvement project.
- ROI increased from 102.7% in 2023 to 268% in 2025, a jump of more than 160 percentage points.
- Garage door replacement pairs relatively low project cost with high front-of-home visibility, amplifying buyer impact.
- Updated garage doors improve curb appeal, energy efficiency, security, and quiet operation, all of which support resale value.
- Real estate professionals say garage door replacement helps reduce buyer hesitation and concerns about deferred maintenance.
Why Garage Door Replacement Is the Smartest Investment for Homeowners in 2025
According to Remodeling Magazine’s Cost vs. Value Report, garage door replacement reached an average ROI of 268% in 2025, up from 193.9% in 2024 and just over 100% in 2023. While other exterior upgrades also performed well, garage door replacement continues to outperform larger and more expensive renovations.
Unlike kitchen remodels or HVAC upgrades, garage door replacement delivers immediate visual impact without significant disruption. As buyers increasingly rely on listing photos, street views, and quick curb appeal judgments, this visibility plays a major role in perceived value.
Why Garage Door Replacement ROI Has Increased So Sharply
For much of the past decade, garage door replacement delivered steady but moderate returns. That changed beginning in 2023.
Between 2023 and 2025, ROI more than doubled. Buyers now evaluate homes earlier and more visually, often forming opinions before scheduling a showing. The garage door, typically one of the largest exterior features, has become a clear indicator of overall home care.
At the same time, modern garage doors offer better insulation, quieter operation, and improved design without dramatic increases in installation cost. The result is a project where perceived value has risen faster than price.
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.
Why Garage Doors Matter More to Buyers Than You Think
A garage door often shapes a buyer’s first impression before they ever walk through the front door. While buyers may not comment on a new door, they notice when one looks worn or neglected.
“A dilapidated or poorly maintained garage door can make the whole house look like it has deferred maintenance issues, even if it doesn’t.”
— Johana Williams, Regional Manager, Utopia Management
That perception alone can cause buyers to hesitate or move on, even when the interior of the home is well-maintained.
Garage doors also offer one of the few opportunities for homes to stand out visually, especially in neighborhoods with strict HOA rules. Jeff Lichtenstein, CEO and Broker at Echo Fine Properties, notes that while paint colors and exterior finishes are often limited, garage doors are frequently exempt and highly visible in listing photos.
“Garage doors are often the one place you can upgrade and actually differentiate your home. That first impression matters.”
Jeff Lichtenstein, Echo Fine Properties
Efficiency plays a growing role as well. Austin Glanzer of 717Homebuyers.com points out that newer garage doors provide better insulation, which can reduce energy loss when living space is located above or beside the garage. Buyers increasingly view this as a practical benefit rather than a nice-to-have.
Beyond the door itself, buyers tend to look for a balance of function and appearance in the garage. According to Chris Gorman of Gorman Residential, space is often the top priority, particularly for oversized vehicles. Other commonly valued features include:
- Clean, finished floors and walls
- Storage and shelving
- Adequate lighting and outlets
- Security features
- Strong curb appeal
- Space for at least two vehicles
Common Pitfalls To Avoid in Garage Renovations
Doing research in advance on parts, procedures, and permitting can help homeowners avoid costly mistakes. Reem Shai, owner of RJ Garage Door Service, notes that homeowners often select the wrong door size, overlook insulation requirements, or prioritize style over function.
Other common renovation missteps include:
- Skipping the planning phase
- Underestimating costs
- Choosing cheap materials
- DIY overreach
- Ignoring permits and codes
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 100
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
Before starting a garage upgrade, homeowners should review local codes and permitting requirements. From there, decide whether the project is suitable for DIY or would be better handled by a professional.
Simple maintenance tasks may be manageable for homeowners, but garage door replacement and spring work are best left to licensed professionals due to safety and liability risks.
Frequently Asked Questions About the ROI of Upgrading Your Garage
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