If you’re considering remodeling your home in the Portland, Oregon area, one of the first questions you’re likely asking is:
“What kind of return on investment can I expect from my remodel?”
Most Portland remodeling projects recoup between 50% and 80% of their cost in added home value, with some exterior projects occasionally exceeding 100%. Your actual return depends on project type, finish level, and how your home compares to others in your neighborhood.
Understanding your Portland remodel return on investment (ROI) helps you make confident decisions — whether you plan to sell soon or stay long term.
Quick ROI Snapshot for Portland Remodels
| Project Type | Typical ROI Range |
|---|---|
| Garage Door Replacement | 90–100%+ |
| Minor Kitchen Remodel | 70–80% |
| Bathroom Remodel | 60–75% |
| Basement Finish | 65–80% |
| Major Kitchen Remodel | 50–65% |
| Whole Home Remodel | 50–70% |
ROI ranges referenced from Remodeling Magazine’s annual Cost vs. Value Report and Lamont Bros. internal Portland-area project data.
This table provides a high-level view. Your specific home, neighborhood, and scope will determine where your project falls within these ranges.
How to Calculate Return on Investment for a Home Remodel?
Return on investment (ROI) measures how much of your remodeling cost you can expect to recoup through increased home value.
Remodel ROI Formula:
(Increase in Home Value ÷ Project Cost) × 100 = ROI
If you invest $100,000 in a remodel and your home’s value increases by $75,000, your project delivered a 75% return on investment.
There are two types of ROI:
- Financial ROI – Increased resale value
- Lifestyle ROI – Improved comfort, layout, storage, and enjoyment
Lamont Bros. consistently emphasizes both because remodeling isn’t just a financial decision — it’s a quality-of-life investment.
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What Is a Good ROI on a Home Remodel in Portland?
A “good” remodel ROI in Portland typically falls between 50% and 80%, depending on the project type.
Exterior improvements often lead percentage rankings. Midrange kitchen and bathroom remodels usually perform better than large upscale overhauls. Major luxury remodels may recoup a smaller percentage but can significantly improve livability and market competitiveness.
The strongest returns occur when:
- The project improves function
- The investment matches neighborhood home values
- The design appeals to a broad buyer pool
Real Remodeling ROI Case Studies
Return on investment becomes much clearer when you look at real projects — not just national averages. Below are two actual Portland-area remodels completed by Lamont Bros., showing how remodeling can affect appraised value.
These examples illustrate how ROI varies based on project type, scope, and added functionality.
Basement Remodel ROI Case Study
Finishing a basement is one of the most common ways Portland homeowners increase livable square footage without expanding the home’s footprint. When properly permitted and thoughtfully designed, basement remodels can significantly increase usable space and appraisal value.
In this Portland project:
- Pre-remodel appraisal: $616,000
- Post-remodel appraisal: $782,000
- Project cost: $210,000
- Value increase: $166,000
- ROI: ~80%
Beyond the financial return, the homeowners gained a fully functional lower-level living area that improved daily comfort and long-term flexibility.
This example demonstrates how adding livable square footage often produces both strong financial ROI and meaningful lifestyle ROI. 
Home Addition Return on Investment
Home additions are another strategic way to increase home value — particularly in neighborhoods where added square footage aligns with surrounding property values.
In this Portland-area remodel:
- Addition cost: $86,000
- Increased home value: $69,000
- True out-of-pocket cost: $17,000
- Added square footage: 408 sq. ft.
While the project did not recoup 100% of its cost immediately, the homeowners secured 400 additional square feet of functional living space for a relatively modest net investment.
When additions are designed within a neighborhood’s value ceiling, they can significantly strengthen both resale potential and long-term equity growth.
For more detailed ROI breakdowns on additions, see:
→ What Is the Return on Investment of a Home Addition?
Which Remodeling Projects Have the Highest ROI?
Based on national Cost vs. Value data and local project performance, the strongest ROI categories typically include:
Kitchen Remodels
Minor and midrange kitchen remodels often outperform luxury kitchen renovations in percentage return.
Bathroom Remodels
Functional bathroom updates improve resale confidence and buyer appeal.
Basement Finishes
Adding permitted, livable square footage increases usable home value.
Curb Appeal Improvements
Garage doors, entry doors, siding, and exterior updates frequently deliver strong resale percentages.
Energy Efficiency Upgrades
While not always dramatic on paper, they improve buyer confidence and marketability in Portland’s sustainability-focused market.
Remodel ROI by Portland Neighborhood Type
Return on investment varies by neighborhood.
Entry-Level Neighborhoods (St. Johns, Cedar Hills, Milwaukie)
Homes in these areas often require updates, which creates opportunity. Strategic remodeling can significantly improve both livability and resale value when the project aligns with neighborhood price ceilings.
For homeowners who purchased at entry-level pricing, upgrading kitchens, bathrooms, or finishing basements can produce meaningful equity growth over time.
Move-Up Neighborhoods (Garden Home, Raleigh Hills)
Many homes built in the 1950s–60s benefit from layout modernization. Open floor plan conversions, kitchen updates, and primary suite upgrades are common improvements.
When thoughtfully executed, these remodels preserve neighborhood character while improving functionality — which strengthens resale positioning.
Remodeling vs. Moving in Portland
With high transaction costs, competitive housing conditions, and fluctuating mortgage rates, many Portland homeowners find remodeling more cost-effective than moving.
When you consider:
- Realtor commissions
- Closing costs
- Moving expenses
- Interest rate differences
- Competing buyer demand
a strategic remodel often provides better long-term positioning — especially if you already love your neighborhood.
For a deeper breakdown, read:
→ Should I Move or Remodel?
How to Maximize Your Home Remodel Return on Investment
To increase ROI:
- Design within your neighborhood price ceiling
- Prioritize layout and function before finishes
- Avoid over-personalized design
- Choose durable, timeless materials
- Work with an experienced design-build team
Proper planning is the single biggest ROI multiplier.
Should You Wait for Remodeling Costs to Drop?
Historically, remodeling costs rarely decline. Over time, labor and material prices tend to increase gradually. Even during economic slowdowns, construction pricing typically remains steady due to labor shortages and supply constraints.
For many homeowners, postponing a remodel can result in higher project costs later — especially if material prices or labor demand increase.
What Happens to Remodel ROI During a Market Downturn?
Homeowners sometimes worry about investing in a remodel before a market correction.
Historically, Portland home values have recovered after downturns — though recovery speed can vary. Because remodeling primarily improves functionality and long-term livability, homeowners planning to stay in their homes often benefit regardless of short-term market fluctuations.
If you plan to sell within 1–2 years, careful scope planning becomes especially important.
Is Remodeling Worth It in Portland Right Now?
For many homeowners, yes — when approached strategically.
Portland remodel return on investment is strongest when projects improve function, align with neighborhood values, and enhance everyday living. Financial return matters — but so does the daily experience of living in a well-designed home.
How Portland’s Housing Market Affects Remodel ROI
Remodel return on investment doesn’t exist in a vacuum — it’s influenced by Portland’s broader housing market.
Interest Rates & Housing Supply
When interest rates fluctuate, the housing market shifts. If rates dip and buyer demand increases, limited inventory can push home values higher. In competitive conditions, updated homes often command stronger offers than outdated ones.
For homeowners who locked in lower mortgage rates in previous years, remodeling may be financially smarter than selling and purchasing a new home at today’s rates.
Equity Leverage
Many Portland homeowners have built significant equity over the past decade. Using that equity to improve your existing home can:
- Increase property value
- Avoid transaction costs
- Improve daily living
- Strengthen long-term financial position
Ready to Learn More About Your Remodeling Options?
After reading this article, do you think have a better idea of whether or not remodeling your Portland home is worth it? Now that you have a good understanding of the factors that affect your decision to remodel, continue researching your remodeling options. To better understand the style and remodeling opportunities within your Portland home, download our free Portland Home Styles Guide.
Think it’s time for you to start planning your remodeling project? If so, don’t do it alone! Click the button below to schedule a free design consultation with a member of our team. We’ll guide you through the remodeling process from start to finish so you never have to face the challenges of remodeling alone.
