Key Takeaways
- Highest % ROI: Garage door (194%), Steel entry door (188%)
- Best Room Addition ROI: In-law suite/ADU (60-70%)
- KC Buyers Want: 3+ beds, 2+ baths, open floor plans, outdoor space
- Avoid: Pools, garage conversions, over-personalized spaces
- Rule of Thumb: Don't spend more than 30% of home value on additions
If you're adding onto your home with an eye on resale value, you need to know which improvements actually pay off. The answer might surprise you: the biggest additions don't always deliver the best returns.
According to the 2025 Cost vs. Value Report, smaller curb appeal improvements consistently outperform major renovations in percentage ROI. But that doesn't mean room additions are bad investments—you just need to choose wisely.
"I always ask homeowners: 'How long are you staying?' If it's 10 years, build what makes you happy. If you're selling in two years, let's talk about what buyers actually want. The answer changes the whole conversation."
ROI by Improvement Type
Here's how different home improvements stack up for resale value, according to national data from HomeLight and Zillow:
| Improvement | Avg. Cost | ROI | Rating |
|---|---|---|---|
| Garage Door Replacement | $4,500 | 194% | Excellent |
| Steel Entry Door | $2,400 | 188% | Excellent |
| Hardwood Flooring | $5,500 | 118% | Excellent |
| Vinyl Siding | $18,000 | 97% | Great |
| Minor Kitchen Remodel | $27,500 | 96% | Great |
| Deck Addition | $17,000 | 89% | Great |
| Bathroom Remodel | $25,000 | 73% | Good |
| In-Law Suite / ADU | $100,000 | 60-70% | Good |
| Master Suite Addition | $125,000 | 55-65% | Good |
| Sunroom Addition | $50,000 | 49% | Fair |
| Major Kitchen Remodel | $80,000 | 38% | Poor |
Kansas City vs. National Averages
The Midwest typically performs better than national averages for home improvement ROI. Here's how Kansas City compares:
KC Advantages:
- • Lower construction costs = lower investment
- • Strong buyer demand for move-in ready homes
- • Outdoor living spaces highly valued
- • ADU-friendly zoning in many areas
KC Considerations:
- • Don't over-improve for neighborhood
- • 4-season sunrooms valued over 3-season
- • Basements expected (finishing adds value)
- • Garages essential—don't convert
Best Room Additions for Value
While curb appeal items have the highest percentage ROI, room additions can still be excellent investments—especially if you'll enjoy them for years before selling. Here are the best choices:
In-Law Suite / ADU
ADUs deliver the best ROI among room additions because they add both livable space AND income potential. Kansas City buyers increasingly value multi-generational flexibility. Bonus: rental income while you own the home.
#2: Master Suite Addition
Adding a primary suite with walk-in closet and updated bathroom appeals strongly to buyers. According to Rocket Mortgage, primary suites return around 63% nationally.
#3: Family Room Addition
Family rooms that open to the kitchen create the open floor plans Kansas City buyers love. Lower cost than master suites with similar ROI makes this a solid middle-ground option.
#4: 4-Season Sunroom
While ROI is lower, sunrooms are affordable and quick to build. In Kansas City, 4-season rooms (with HVAC) are worth the premium over 3-season rooms because they're usable year-round.
What Kansas City Buyers Actually Want (2026)
Based on local real estate trends and feedback from KC agents, here's what today's buyers prioritize:
High Priority:
- ✓ Updated kitchens (even minor updates help)
- ✓ Modern bathrooms (especially primary)
- ✓ Open floor plans
- ✓ 3+ bedrooms, 2+ full bathrooms
- ✓ Outdoor living space (deck/patio)
- ✓ Home office or flex space
- ✓ Finished basements
Lower Priority / Avoid:
- ✗ Swimming pools (maintenance concerns)
- ✗ Highly customized spaces
- ✗ Converted garages (parking matters)
- ✗ Luxury upgrades beyond neighborhood
- ✗ 3-season sunrooms (limited use)
- ✗ Bold design choices
The 30% Rule: Don't Over-Improve
According to This Old House, a common guideline is the 30% rule: spend no more than 30% of your home's current value on renovations.
For example, if your home is worth $350,000, keeping total renovation investment under $105,000 helps ensure you don't over-improve for your neighborhood. Going beyond this threshold means you're unlikely to recoup costs at resale.
Additions to Avoid (or Think Twice About)
- Swimming Pools: Often negative ROI in Kansas City due to short season, maintenance costs, and insurance implications.
- Garage Conversions: Removing parking hurts resale. KC buyers expect garages.
- Luxury Upgrades Beyond Neighborhood: A $200K addition in a $250K neighborhood won't return well.
- Highly Personalized Spaces: Built-in home theaters, wine cellars, and sports courts appeal to narrow buyers.
Frequently Asked Questions
What home addition has the best ROI?
Smaller improvements like garage doors (194% ROI) and steel entry doors (188% ROI) have the highest percentage returns. For room additions specifically, in-law suites/ADUs (60-70% ROI) and master suites (55-65% ROI) typically perform best because they add bedrooms and bathrooms.
Do room additions increase home value in Kansas City?
Yes, well-designed room additions typically increase home value by 50-70% of their cost in Kansas City. The key is matching the addition to neighborhood expectations—over-improving for your area reduces ROI.
What additions should I avoid for resale value?
Avoid swimming pools (often negative ROI in KC), highly personalized spaces (home theaters with permanent built-ins), converting garages to living space (reduces parking), and luxury upgrades that exceed neighborhood norms.
Is a sunroom a good investment in Kansas City?
Sunrooms return 45-55% of their cost at resale in Kansas City—lower than some additions, but they're also more affordable. If you'll enjoy the space for 5+ years, the lifestyle benefit often outweighs the ROI math.
Does adding a bedroom increase home value?
Yes, adding a bedroom can significantly increase value, especially if it takes a home from 2 to 3 bedrooms or 3 to 4 bedrooms. In Kansas City, each additional bedroom can add $15,000-$40,000 to home value depending on the neighborhood.
What is the 30% rule in remodeling?
The 30% rule suggests spending no more than 30% of your home's current value on renovations. This helps ensure you don't over-improve for your neighborhood and can recoup costs at resale.
Should I add an ADU for rental income in Kansas City?
ADUs can be excellent investments in Kansas City if zoning allows. Rental income of $800-$1,500/month can offset your mortgage while the addition adds value. Check local zoning regulations—rules vary between Kansas City, MO and Johnson County, KS.
What do Kansas City buyers look for in homes?
Kansas City buyers prioritize updated kitchens, modern bathrooms, open floor plans, and outdoor living spaces. Home offices have become increasingly important. Buyers typically want move-in ready homes with 3+ bedrooms and 2+ bathrooms.
Bottom Line: Build for You First
While ROI matters, the best addition is one you'll enjoy for years. If you plan to stay in your home 5+ years, prioritize your lifestyle needs over pure resale math. The financial return is a bonus.
Ready to explore your options? Browse our room addition portfolio to see what's possible for your home, or request a free consultation to discuss which addition makes the most sense for your situation.
About the Author
Bob Coulston, Owner of Coulston Construction
Bob has helped hundreds of Kansas City homeowners make smart addition decisions over 15 years. His team focuses on quality construction that adds lasting value to your home.
Learn more about Bob →