Is Renovating Your Home a Good Investment?

Why Denver Homeowners Are Choosing to Upgrade Instead of Move

In today’s real estate landscape, many Denver homeowners are asking the question: Is renovating your home truly a smart investment? The data and trends suggest a clear answer—yes. Not only are renovations enhancing lifestyle and functionality, but they are also delivering strong returns by adapting homes to modern needs without the costs and upheaval of relocation.

A recent report from Instant Roofer reveals that Denver homeowners spend more on renovations than any other U.S. city, with a particular focus on room conversions and home additions. At Sustainable Design Build (SDB), we’ve seen this surge firsthand, with growing demand from homeowners who want more space, greater comfort, and updated features—all while staying in the neighborhoods they love.

Why Renovate Instead of Relocate?

The decision to renovate rather than move is driven by both financial and emotional factors:

• Rising home prices and limited inventory make moving less appealing.

• Many families have built roots in their communities—schools, friends, and lifestyle routines are hard to replicate elsewhere.

• With remote work becoming the norm, the demand for home offices, multifunctional living areas, and upgraded layouts has skyrocketed.

For these reasons, renovation isn’t just about aesthetics or resale value—it’s about transforming a home into a more functional, joyful place to live.

Denver’s Renovation Trends by the Numbers

• Room conversions in Denver average $900 per room, a stark contrast to the national average of $200.

• Average annual renovation spend is $14,200, which accounts for approximately 11.5% of household income.

• Projects range from dedicated offices and gyms to interior upgrades like new flooring, lighting, or custom cabinetry.

• According to a 2025 Thumbtack survey, 84% of homeowners focus on happiness and livability over resale gains.

The Role of Home Additions in Long-Term Investment

While basic renovations improve existing spaces, home additions go further by creating entirely new square footage—which can dramatically boost both quality of life and home value.

Common additions in Denver include:

• Primary suites with spa-like bathrooms

• Expanded kitchens for hosting and functionality

• Sunrooms, gyms, and bonus rooms

• Detached or attached home offices

These larger-scale projects typically come with higher upfront costs, but they offer superior long-term returns, particularly in neighborhoods where space is scarce and zoning allows for vertical or rear expansion.

What Makes Renovation a “Good” Investment?

Renovating is a smart financial move when:

• You plan to stay in your home for several years, allowing enjoyment and equity to grow.

• The updates address lifestyle or functional needs like remote work or family growth.

• You improve high-impact areas like kitchens, bathrooms, and unfinished basements.

• You work with professionals who can guide design, permitting, and execution efficiently.

At SDB, we use the design-build approach to streamline the entire process—from concept to completion—so clients enjoy a cohesive, timely, and cost-effective project.

Setting Smart Expectations: Budget & Planning

Renovation should never be approached casually. With Denverites spending well above the national average, it’s important to:

• Define your goals early (livability vs. resale)

• Establish a realistic budget and include contingency reserves

• Work only with licensed, insured contractors

• Understand your neighborhood’s zoning limits for additions or conversions

Small cosmetic updates might be cost-effective, but larger transformations—especially additions—require careful planning to avoid budget creep and maximize ROI.

When Renovation Isn’t Enough

Sometimes, your home’s current footprint simply can’t meet your needs. That’s where home additions offer a compelling next step. If you need:

• More bedrooms or bathrooms

• A larger living or dining area

• A private space for work or guests

…then an addition might be your best investment—not just financially, but emotionally as well.

At Sustainable Design Build, we specialize in these transformative projects, blending new construction seamlessly into your existing home while managing the entire process under one roof.

Final Thoughts: Renovate with Purpose

Renovation is more than a trend—it’s a strategic, lifestyle-driven investment. Denver homeowners are proving that staying put and building up (or out) is often more practical and rewarding than uprooting to find a new place.

Whether you’re refreshing a tired space or adding entirely new rooms, the right renovation can pay dividends in comfort, functionality, and value. And with Denver’s renovation spend leading the nation, you’re in good company.

At Sustainable Design Build, we’re here to help you invest wisely and build beautifully—one room, addition, or custom home at a time.