What if the best home improvement has nothing to do with resale value? With U.S. homeowners spending over $600 billion on remodeling in recent years, the obsession with return on investment (ROI) is understandable [1]. But your home is more than an asset; it’s the backdrop to your life.

Your home should be a charging station for your life, not just an asset on a balance sheet. Renovate for joy, not just for the next owner.

The Problem: Chasing a Payoff That Isn’t Guaranteed

You’re constantly told that every dollar you spend on your house must increase its value. So, you spend hours researching projects that will impress a future, hypothetical buyer.

Normal: You believe that remodeling is purely a financial calculation. You renovate your kitchen not because you love to cook, but because you heard it offers a good return when you sell.

Explosion: You have a sudden realization—you’re sacrificing your own comfort and happiness for years, all for an appraiser’s stamp of approval. You’re living in a staging project instead of a home. Psychological studies show that our homes are crucial for everything from restoration to kinship, yet we often ignore these needs in favor of market trends [7].

New Normal: You shift your thinking from financial ROI to “Emotional ROI.” This isn’t about making poor financial decisions; it’s about making conscious choices that balance your well-being with your investment [2].

A Tale of Two ROIs

I once consulted with a family in Encinitas who dreamed of adding a swimming pool. They had two active kids and loved hosting friends on sunny San Diego weekends. Their financial advisor, however, was horrified. He correctly pointed out that a pool often returns less than 25% of its installation cost at resale [3]. It was, by all financial metrics, a “bad” investment.

When they came to us, we confirmed the numbers. An appraiser wouldn’t be impressed. But then our team at The Cassity Team asked a different question: “What is a decade of family memories worth to you?” They went ahead with the pool. It became the heart of their home, creating a sense of attachment that research links directly to well-being [8]. When they eventually sold, the pool wasn’t a major value-add on paper, but their quality of life had been immeasurable.

11 Upgrades with High “Joy Scores” and Low Financial Returns

Not every renovation needs to be about the bottom line. The National Association of Realtors’ “Remodeling Impact Report” assigns projects a “Joy Score” from 1 to 10 [1]. Here are 11 improvements that score high on happiness, even if they make appraisers shrug.

▶ 1. Swimming Pool

• Why you’ll love it: Creates a resort-like backyard for relaxation and entertainment.

• The financial reality: Recoups less than 25% of its cost, plus ongoing maintenance expenses [3].

▶ 2. Sunroom Addition

• Why you’ll love it: Blurs the line between indoors and out, giving you a year-round space to enjoy natural light.

• The financial reality: You’ll only get back about 45-50% of what you spend [3].

▶ 3. Ultra-Luxe Master Bathroom

• Why you’ll love it: A personal spa with a steam shower and soaking tub is the ultimate daily retreat.

• The financial reality: A high-end bathroom renovation often returns only 50% of its cost, whereas a simple refresh does much better [4].

▶ 4. High-End, Gourmet Kitchen

• Why you’ll love it: Wolf ranges and Sub-Zero fridges look incredible and are a joy for serious home chefs.

• The financial reality: An upscale major kitchen remodel only recoups around 42% of its investment [1].

▶ 5. Converting a Bedroom into Something Else

• Why you’ll love it: That fourth bedroom becomes the walk-in closet, home gym, or library you’ve always wanted.

• The financial reality: This can actively decrease your home’s value. Appraisers value bedrooms, and losing one shrinks your buyer pool.

▶ 6. Bold, Personal Interior Paint & Wallpaper

• Why you’ll love it: Your home finally reflects your personality with vibrant colors and patterns.

• The financial reality: While strategic, neutral repainting can have a 100% ROI [5], highly personal choices often need to be “fixed” before a sale.

▶ 7. Dedicated Home Theater

• Why you’ll love it: Movie nights are transformed into cinematic experiences with tiered seating and a projection screen.

• The financial reality: This is a niche feature that appeals to a small segment of buyers, limiting its return.

▶ 8. Elaborate Landscaping & Gardens

• Why you’ll love it: A beautiful garden provides a peaceful escape and a rewarding hobby.

• The financial reality: While curb appeal matters, intricate, high-maintenance gardens can be seen as a burden by potential buyers.

▶ 9. Wine Cellar

• Why you’ll love it: A climate-controlled sanctuary for your collection is a wine lover’s dream.

• The financial reality: Unless you’re in a specific luxury market, the ROI is very low. (I love a good wine cellar, but I also love seeing our clients make sound financial moves. It’s a tough balance.)

▶ 10. A Fully Finished Basement for Your Hobby

• Why you’ll love it: A sound-proofed music studio or a sprawling model train room is your personal paradise.

• The financial reality: While converting an attic or basement can be a good investment, hyper-specialized finishes don’t appeal to everyone.

▶ 11. Removing a Bathtub for a Larger Shower

• Why you’ll love it: You get a huge, luxurious walk-in shower.

• The financial reality: Families with young children often require at least one bathtub, so removing it can be a deal-breaker.

How to Renovate for Both Happiness and Financial Sense

Choosing personal joy over pure ROI doesn’t mean you have to be reckless. The key is to be intentional.

Normal: You fund a passion project on a whim, never considering its impact on your home’s future value.

Explosion: You realize that a smart real estate strategy involves knowing the difference between a “joy” upgrade and an “investment” upgrade.

New Normal: You partner with an expert who understands both. At The Cassity Team, we help our clients categorize their goals. If your goal is maximizing value for an upcoming sale, we have a data-backed playbook focused on high-return projects like new front doors and minor kitchen upgrades, detailed in our SD Renovations That Pay rundown. If your goal is to build a home you’ll love for the next decade, we help you do that with your eyes wide open to the financial implications.

Your Strategic Next Step

Stop guessing. Renovating your home is a major decision, and you deserve a strategy that aligns with your personal and financial goals.

➜ Schedule a complimentary consultation with our team to discuss your renovation ideas. We’ll provide a data-driven perspective on how your plans could impact your home’s value in the San Diego marketplace, allowing you to make a decision that’s right for you—and your wallet.