7 of the Best Home Additions to Increase Property Value

In a competitive market like Los Angeles, where every square foot matters (and costs a small fortune), smart renovations aren’t just about aesthetics—they’re about ROI. Whether you're a homeowner looking to boost resale potential or a real estate investor trying to make the numbers work, choosing the right upgrades is key. At Built to Perfection, we specialize in transformations that make sense—financially and functionally.

So, how do you decide which improvements are worth it? Here's your guide to the best renovations to increase home value especially in the high-demand, style-savvy LA market.

1. Add a Legal ADU (Accessory Dwelling Unit)

If you’ve got unused garage space, a roomy backyard, or even an underutilized basement, converting it into a legal ADU is one of the highest ROI home additions you can make in Southern California. With LA’s housing shortage, a rental-ready unit appeals to buyers and renters alike.

ROI Potential: Up to 100% or more

Why it works: Generates passive income, boosts square footage, and increases property flexibility.

Bonus: Eligible for city incentives and streamlined permits.

👉 Thinking of building an ADU? Don’t miss The Complete Guide to Planning and Building an Accessory Dwelling Unit (ADU)—your go-to resource for timelines, permitting tips, and design ideas that work in LA.

2. Kitchen Expansion or Remodel

A well-designed kitchen sells homes. But in LA, where open-concept living reigns, expanding a cramped galley kitchen into an entertainer’s dream can pay off big time.

ROI Potential: 70–80%

Why it works: Kitchens are emotional spaces. They’re also the heart of the home (and the Zillow listing).

Pro Tip: Choose cost-effective home upgrades like quartz countertops, energy-efficient appliances, and good lighting over flashy extras.

💡 Curious what makes a space feel instantly inviting? Peek at Smart Upgrades for a Home You’ll Adore for ideas that go beyond the backsplash.

3. Bathroom Addition or Upgrade

Adding a bathroom—or simply updating an old one—is a classic move. Homes with too few bathrooms often sit longer on the market and can be undervalued.

ROI Potential: 60–70%

Why it works: Functionality is king. No one wants to line up for the shower.

Smart Upgrade: Go for low-flow fixtures, built-in storage, and sleek tile to appeal to modern tastes.

🚿 Tech it up where it counts. Explore Incorporating Smart Features into Your Bathroom Renovation for upgrades that impress buyers and simplify daily life.

4. Outdoor Living Spaces

You know what LA has in spades? Sunshine. Tapping into that with a beautiful deck, covered patio, or outdoor kitchen is one of the best ways to increase home value.

ROI Potential: 65–75%

Why it works: Outdoor space is a premium, especially post-2020.

Upgrade Ideas: Fire pits, retractable shade structures, or built-in seating—luxury without overbuilding.

5. Home Office or Flex Space

The hybrid work lifestyle is here to stay. Converting a spare room, garage, or even part of a large bedroom into a dedicated office or flex space adds marketability—especially among younger buyers.

ROI Potential: 55–75%

Why it works: More than a nice-to-have, it’s now a buyer expectation.

Cost-Saving Tip: Use built-in shelving or soundproofing panels for a high-end look on a budget.

6. Energy-Efficient Upgrades

You can’t see insulation—but your utility bills can feel it. From solar panels to dual-pane windows and smart thermostats, these smart home upgrades that add value make your property more attractive (and cheaper to operate).

ROI Potential: 50–80% depending on the upgrade

Why it works: Eco-conscious buyers and rising energy costs make this a win-win.

Popular Choices: Solar, tankless water heaters, smart security systems, and efficient HVAC units.

🌱 Going green in the bathroom? Check out Eco-Friendly Fixtures and Tips for Your Bathroom Renovation for ways to save water and boost resale value.

7. Curb Appeal Projects

Don’t underestimate first impressions. A new front door, upgraded siding, or refreshed landscaping can dramatically shift how a property is perceived—both online and IRL.

ROI Potential: 70–100%

Why it works: It gets buyers in the door (literally).

Cost-Effective Ideas: Modern lighting, drought-tolerant plants, and fresh paint.

Return on Investment: Know Before You Build

Understanding the return on investment for home additions is just as important as the renovation itself. Not every project needs to be flashy—cost-effective upgrades often bring the most consistent value. Knowing how to increase property value with home improvements means looking at the long game: What adds real, lasting appeal in your local market?

If you're aiming for high ROI home additions, focus on functionality, square footage, and energy efficiency—features that buyers and appraisers both love.

Ready to Add Value? Let’s Talk.

Whether you’re making your forever home even better—or prepping a property for market—Built to Perfection is here to help with high-quality renovations and home additions that add value.

Contact us today for a free quote and let’s build something worth bragging about (and investing in).