Relocate Vs Renovate: A Look at the Pros, Cons, and ROI of Renovation Projects in the Boston Suburbs

Is it Better to Renovate or Move? A Look at the Pros, Cons, and ROI of Renovation Projects in the Boston Suburbs

Deciding whether to renovate or move can be a tough choice—especially in the Boston-area real estate market, where prices and demand fluctuate. While smaller projects like garage door replacements or entry door upgrades offer solid returns on investment (ROI), it’s larger, more transformative projects—such as dormers, second-story additions, and kitchen or bathroom renovations—that really boost your home’s value and usability.

However, before committing to a major renovation, it’s important to consider not only the ROI of the project itself but also the existing condition of your home. The starting point of your home’s condition will significantly impact the final return you can expect and affect the overall cost-effectiveness of the renovation.

Common Renovation Projects in the Boston Suburbs

In the Boston suburbs, certain renovation projects stand out as both impactful and rewarding. These projects not only offer high ROI but also transform how you experience your home:

• Dormers and Attic Conversions: Dormers are a popular renovation for Cape-style homes and older properties with underutilized attic space. Adding a dormer can maximize vertical space, creating extra bedrooms, bathrooms, offices, or just more headroom. It’s a go-to project in towns like Newton, Wellesley, and Brookline. While this project can provide significant value, the condition of your home’s existing structure will greatly affect both feasibility and costs. Homes with solid structural integrity are ideal for dormer projects, which are typically completed with minimal disruption to first-floor living spaces.

• Second-Story Additions: In the Boston suburbs, second-story additions are a common choice for homeowners looking to add square footage without sacrificing outdoor space. Neighborhoods with ranch-style homes—especially in towns like Lexington, Sudbury, and Natick—often see these projects. Though they offer high ROI, second-story additions can be costly and disruptive. A well-built home can accommodate a second floor, but if your house requires foundation repairs or structural upgrades, costs can quickly escalate. Additionally, major changes to first-floor spaces (like adding a staircase or reconfiguring bedrooms) often require homeowners to find temporary housing during construction.

• Kitchen Renovations: Often referred to as the heart of the home, kitchens are consistently one of the most popular renovations in suburban areas like Needham, Newton, and Natick. Whether it’s a midrange remodel with upgraded cabinets, counters, and appliances, or a high-end renovation with designer finishes, kitchen remodels typically offer an ROI of around 110-115% in New England. However, the existing condition of your kitchen plays a major role in how much value the remodel will add. A well-maintained kitchen with modern finishes may not see much of a bump in value, while an outdated kitchen will significantly increase in value with an update.

• Bathroom Remodels: Upgrading bathrooms is common in towns like Weston, Wellesley, and Newton, whether it’s a midrange remodel or a more luxurious overhaul. ROI for bathroom remodels can range from 50% to 85%, depending on the scale of the renovation. Bathrooms in homes with outdated plumbing or poor layouts often require significant updates but stand to benefit the most from renovations.

Moving vs. Renovating: Key Considerations

When deciding whether to renovate or move, it’s important to look beyond just the financial aspects. Renovations can provide significant returns, but moving also has its benefits—especially in today’s market.

1. Financial Investment & ROI Renovations tend to offer solid ROI, particularly for adding square footage or modernizing key areas like kitchens and bathrooms. However, the existing condition of your home plays a big role in determining how much value the renovation will add. Consider not only the scope of the work but also the hidden costs—like inconvenience—and how you plan to fund the project. With market volatility, some homeowners may hesitate to pull money out of investments to fund a renovation, while others may prefer to invest in something more tangible like real estate.

2. Logistical Considerations Major renovations, such as second-story additions or dormers, can be costly and disruptive. Depending on the scope, you may need to relocate temporarily or endure months of construction. While short-term rentals may seem like an option, they can come with challenges, especially in busy rental markets during the summer.

   Renovating your existing home often involves dealing with zoning and building permits, which vary by town. Although zoning concerns are generally more of an issue for projects like dormers, it's essential to prepare for the regulatory hurdles that can accompany large renovations.

3. The Current Market and Financing Options Financing a renovation can be expensive, especially with mortgage rates around 6.5% and HELOC rates around 7.5% in April 2025. HELOCs and home equity loans offer flexibility, but their higher rates need to be carefully considered. On the other hand, selling and moving may be an appealing option in today’s market—particularly in high-demand suburban areas like Newton, Wellesley, and Lexington—where inventory is tight but prices remain high. If you can sell your home for a strong price, you might be able to leverage your equity to buy a larger property without the hassle of a major renovation.

4. Long-Term Benefits of Renovating Renovating is an excellent way to stay in a neighborhood you love while upgrading your home to meet your needs. If your home has strong structural bones and just requires some updates or additional space, renovations can be a perfect solution. Adding a second story or dormer can enhance both your quality of life and the home’s value, particularly in neighborhoods with limited housing stock.

5. Consulting the Professionals Before making any decision, seek advice from both a broker and a contractor. Here are some important questions to ask:

   • Contractor:

     • “How long do you expect this project to take, and how might delays affect the timeline?”

     • “How do you handle unexpected complications, such as structural issues or supply chain delays?”

     • “Does your pricing include specific fixtures, allowances, design, and permitting services?”

     • “Do you foresee any zoning or permitting issues? Are utilities on my lot adequate?”

   • Broker:

     • “What would my current home's value look like, and what would you expect it to be after completing the renovations I'm considering?”

     • “Can you show me some examples of homes available or those that have sold recently that would fit what I'm looking for?”

     • “Given the current market and interest rates, should I invest in renovations, look for a new home, or do a combination of both?”

Conclusion: Renovate or Move?

Deciding whether to renovate or move depends on a range of factors, including the condition of your home, the renovations you’re considering, your budget, and the local market. Renovating may be the right choice if you’re happy with your neighborhood and want to customize your home, especially if the existing structural condition supports the changes you want to make.

On the other hand, selling and moving might be the better option if there are significant hurdles to renovation, such as zoning issues or major structural repairs, or if your current home no longer meets your needs. In high-demand markets like Wellesley and Brookline, selling your home at a good price could allow you to find a larger, more suitable property without the stress of a major renovation.

Ultimately, the best decision aligns with both your financial goals and lifestyle preferences. Consult with a real estate agent and contractor to assess the potential costs, ROI, and feasibility of each option.

If you need help making the decision, feel free to reach out to a real estate expert at Board & Park. Specializing in the Greater Boston area, we have years of experience in both real estate sales and investments so understand both sides of the equation—construction costs, market values, and the benefits of a fresh start.