The 10 Cities Where Sellers Make the Most Money When Renovating, According to a New Report

Buying a fixer-upper home can be, in a word, intimidating. You never know what problems (or delights) you might uncover when you’re doing a full gut or giving your home some much-needed TLC through a contractor or DIY efforts. But putting in some elbow grease can be worth it down the line — especially when it comes to putting your refurbished fixer-upper back on the market. And while return on investment is super important when you’re putting in renovations on your home, knowing which markets value those renovations the most might help you decide where to invest.

So, what cities will snag you the biggest home price increases if you decide to renovate? Home services website Frontdoor found that Miami, Florida, is the most profitable city to renovate a fixer-upper home in, with an estimated return on investment (ROI) of 17.67%. The Sunshine State is a great place to list a home right now overall, thanks to market availability. For instance, a recent Zillow report found that the cities of Tampa, Orlando, and Jacksonville have the smallest home inventory deficits nationwide.

Second place goes to Charleston, South Carolina, which has an estimated ROI of 17.38%. Meanwhile, Los Angeles, California, takes third place. California has the highest number of profitable cities to renovate in, with six Californian cities ranking within Frontdoor’s top 10.

To find out, Frontdoor had their data team analyze the median price and size of homes listed as a “fixer-upper” on Zillow in America’s 130 largest cities. Then, the data team utilized a home remodeling cost estimator on Kukun (an AI-powered home technology platform). 

They calculated the added value of the home remodel, likely cost of the remodel, and the profit margin of renovating each of the house’s rooms relative to the median price and size of a fixer-upper in each city.

Here’s Front Door’s full list of the top 10 cities with the top ROI on renovating your home, with the top ROIs listed in percentages.

1. Miami, FL (17.67%)
2. Charleston, SC (17.38%)
3. Los Angeles, CA (17.19%)
4. Long Beach, CA (16.95%)
5. San Jose, CA (16.91%)
6. Anaheim, CA (16.88%)
7. Santa Ana, CA (16.81%)
8. Scottsdale, AZ (16.63%)
9. San Francisco, CA (16.60%)
10. St. Petersburg, FL (16.37%)

You can read Frontdoor’s full report here.