New hardwood floors return roughly 118% of their cost at resale, and refinishing existing hardwoods returns a stunning 147%, which is the highest ROI of any interior project tracked in the National Association of Realtors' 2025 Remodeling Impact Report.[1]
That puts hardwood in rare company: among the small handful of home improvements that don't just pay for themselves, but pay you a small premium on top.
But the headline number hides three things every seller needs to know. ROI varies sharply by region and price point. The alternatives (refinishing, LVP, even high-end laminate) often beat new hardwood on a dollar-for-dollar basis. And today's buyer has less cushion than at any point in the last decade, which changes which flooring move actually pays off.
When I sold homes for clients in Charleston, SC, the LVP vs. refinish vs. replace decision was the single most common pre-listing question I got. The answer was almost never the same twice, and it's even more situation-dependent now.
Here's what the math actually looks like, what two practicing real estate experts told me about how it's playing out in 2026, and a four-question decision tree to figure out the right move for your home.
How much value do hardwood floors add to a home?
New hardwood floors return roughly 118% of cost at resale, according to the NAR 2025 Remodeling Impact Report, meaning the typical homeowner who installs hardwood recovers their full investment plus a small premium when they sell. Refinishing existing hardwoods does even better at 147%. Both are top-five projects in the report.[1]
Andrew Fortune, Broker/Realtor at Great Colorado Homes, emphasizes that replacing flooring substantially impacts a home's value by making it feel brand new.
"Since flooring is the most trafficked part of the home, replacing the flooring has the greatest impact on a home’s value. New floors make the home appear as if no one has lived there," he says.
But these figures reflect the averages. The real ROI in your specific transaction depends on three things.
1. The condition of what's there now
This is where most sellers get the math wrong, says Mitch Coluzzi, head of construction and co-founder of SoldFast in Des Moines, IA.
"I always tell my clients the same thing: When it comes to flooring and paint, you pay for it twice. You either pay to do it before you list, and you get most of that money back. Or you don't, and the buyer takes way more off the offer than what it would have cost you, because in their head it's now an unknown."
2. Your price point and submarket
Hardwood ROI scales with the home's price. In Manhattan, the Hamptons, or any pre-war or historic submarket, hardwood is non-negotiable.
"Hardwood floors at any price point here are going to move the needle," says Corey Wayne Ogle, a licensed real estate salesperson with High Line 2 Hamptons in New York City.
In a $300,000 starter home in Iowa, the same logic doesn't hold. LVP that looks like wood does the same job for a third of the cost.
3. Your region and home type
Coluzzi has worked deals on a Louisiana equestrian estate where solid white oak was the only acceptable answer, and on Iowa flips where engineered hardwood would be money lit on fire. Local norms drive the multiplier.
To get market-specific advice about installing hardwood flooring, contact a trusted realtor in your area. They can provide guidance on the expected ROI for the project, suggest better renovation investments, and offer a home valuation before you upgrade.
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Hardwood flooring: The 2026 reality check
Three forces are squeezing buyers in 2026, and each one changes the calculus on flooring:
- The NAR settlement aftermath. Buyers are now responsible for negotiating (and sometimes covering) their own agent's commission, on top of closing costs that have always been theirs. Every dollar that used to be a 'we'll fix it after move-in' line item has come under more scrutiny.
- Mortgage rates parked in the high 6s. Compared to the 3% rates that made 2020–2021 buyers comfortable absorbing $5,000–$10,000 in post-close upgrades, today's monthly payment on the same purchase price is roughly 50% higher. There's no 'renovation cushion' baked into the loan.
- First-time buyer affordability has cratered. 64% of buyers planned to spend less than $400,000 in 2025, with a median target of just $310,000, and 38% exceeded their budget to close.[2]
Coluzzi, head of construction and co-founder at SoldFast in Des Moines, sees it firsthand.
"If you're listing a $280,000 home, the people buying that home are most likely going to be first-time homebuyers. They're going to be very tight on funds. They might not even have money to buy a refrigerator at that point. So if they walk in and the flooring's all torn up, that just becomes another problem."
Translation for sellers: the buyer who used to absorb the carpet replacement is now the buyer who might walk past your listing entirely, or who comes in $8,000 under asking to make the math work. Spending on flooring before listing isn't optional polish in this market. At the affordable end, it's often what gets you the offer.
Hardwood flooring alternatives
Refinish your existing hardwood
If you have hardwood under your carpet — even older, scratched, or stained hardwood — refinishing is almost always the right move before listing.
The NAR 2025 report puts the cost recovery on a hardwood refinish at 147% — the highest of any interior project the trade group tracks. That's higher than a kitchen remodel (113%), a bathroom remodel (80%), and every other floor type combined.
The math works because the cost is low. Expect $3 to $8 per square foot for a refinish, compared to $5 to $15 per square foot for new flooring. On 800 square feet of living and dining space, that's roughly $2,400 to $6,400 of work returning $3,500 to $9,400 in value at resale.[3]
One caveat from Coluzzi: hardwood can only be refinished a finite number of times before the wear layer is too thin to sand again.
"If you're in a home that's been refinished two or three times already, you might be at the end of the line. Get a flooring contractor to look at it before you commit — sometimes a deep clean and a screen-and-recoat does 80% of the visual job for 20% of the cost," he says.
Pro tip: Refinishing solid hardwood
Most solid hardwood can be refinished four to six times in its life. Engineered hardwood, only one to two times depending on wear-layer thickness.
When I was prepping one of my Charleston listings for market, we pulled up the original carpet in the dining room and found 1950s heart pine underneath. Refinishing cost the seller about $2,800. The home appraised $11,000 over our pre-refinish comp. That's the move.
Luxury vinyl plank (LVP)
LVP flooring mimics the hardwood look, but it’s made from engineered vinyl, which is more durable than many wood floors. These floors are waterproof, ideal for high-traffic areas, and great for pets and kids — many options also come with a lifetime residential warranty and cost less than hardwood on average.
Market trends suggest that vinyl alternatives to hardwood will continue to grow in popularity. The global vinyl flooring market is just over $23 billion and is forecasted to rise 5.2% annually.[4]
LVP is also DIY-friendly and features a click-together system. The material is easier to cut than alternatives, and LVP is more forgiving in corners, where matching surfaces can be hard.
Laminate flooring
Laminate floors look like hardwood but are layers of synthetic materials. These floating floors are durable and scratch-resistant, work well in high-traffic areas, and often feel softer underfoot than alternatives like LVP.
Installing laminate flooring requires less work than hardwood and is more DIY-friendly. Many options also run cheaper than hardwood, saving you money on your renovation.
One drawback of laminate flooring is that many options aren’t fully waterproof. Because of this, you should keep it out of areas like bathrooms and kitchens and focus on using it in primary living areas, bedrooms, and hallways.
Luxury vinyl tile (LVT)
LVT contains the same material as luxury plank flooring but mimics natural stone or ceramic tile instead of wood. While luxury is in the name, LVT is more popular in standard homes over higher-end homes that benefit more from natural stone tile work.
This flooring type works best in rooms that suit the tile aesthetic, such as bathrooms and kitchens, but it may look out of place in a bedroom or living area. LVT also has all the benefits of its LVP counterpart and great DIY potential.
Hardwood vs. LVP in 2026
If you'd asked any agent in 2018 what flooring to install before listing, "real hardwood" was the universal answer. In 2026, the answer is more nuanced, and for most price points, it's LVP.
"LVP is the go-to present day," Coluzzi says. "The technology has gotten so good that buyers walking through can't tell the difference, and at $4 to $6 a square foot installed versus $10 to $15 for hardwood, the cost recovery math is just better. I tell sellers: unless you're in a historic home or above $750K, LVP is the answer."
Ogle, who works both Manhattan brokerage and out-of-state investment deals, draws the line cleanly: "In Manhattan, it has to be hardwood. Outside the city — even my own investment properties in Pennsylvania and the Carolinas — I'm doing LVP every time. It survives tenants, it survives water, and buyers love it."
I had the same experience renovating my own rental properties. We put LVP in two of them — one in Charleston and one in eastern Pennsylvania — and got the same visual upgrade at roughly half the cost of engineered hardwood. Buyers and tenants couldn't tell the difference.
The takeaway: unless you're selling in a top-10 metro luxury submarket or a pre-war / historic home, LVP delivers the visual upgrade buyers want at a price point that lets you recoup most or all of the spend.
The flooring decision tree: 4 questions every seller should answer
Before you commit to ripping out flooring or refinishing, walk through these four questions. They mirror the framework Coluzzi uses with his own seller clients in Iowa, and they apply at any price point.
1. What flooring is in your home now, and is hardwood underneath?
Pull up a corner of the carpet in a closet. If you find hardwood (even rough, paint-spattered, or water-stained hardwood), refinishing is almost always cheaper and higher ROI than installing anything new. If the carpet is over plywood subfloor, your best options are LVP or new hardwood directly.
2. How visible is the damage?
Stains, pet odor, and visible wear don't just discount the floor. They signal "deferred maintenance" across the whole house. Buyers extrapolate. Coluzzi: "If they walk in and the flooring's torn up, that just becomes another problem." If your existing flooring is more than 7 years old or has any visible staining, replace or refinish it.
3. What's your price point and submarket?
Here's how to decide:
- Sub-$400K, suburban or starter: LVP, 100% of the time. Buyers expect it now, and inspectors won't flag it.
- $400K to $750K, mid-tier: LVP if the existing flooring is bad; refinish if there's hardwood underneath.
- $750K+ or historic: Real hardwood. Engineered minimum, solid preferred. Anything else gets penalized in offers.
4. Should I just give the buyer a flooring credit?
Almost never. A credit at closing typically costs the seller more than just doing the work, because buyers mentally double the cost of any work they have to coordinate themselves. Ogle has watched it happen on $4M Manhattan listings:
"I had a seller who didn't want to spend $2,000 to patch and refinish a damaged spot. The home sat for three months. The first offer came in $40,000 under, and the buyer still asked for a flooring credit," says Ogle of High Line 2 Hamptons.
What looks like a $2,000 fix to you reads as a $5,000 problem to a buyer who has to manage contractors, time the work around move-in, and front the cash before closing. For specific project costs in your region, the JLC 2025 Cost vs. Value Report has interactive cost-recovery data for 100+ U.S. metros.
The bottom line
If your home has existing hardwood, refinish it. 147% ROI is the best return on any interior home improvement project that's measurable.
If your home has worn carpet or laminate, install LVP. Unless you're selling above $750,000 or in a historic or luxury submarket (in which case install real hardwood).
Don't offer a flooring credit at closing if you can avoid it. You'll lose more in the negotiation than the work would have cost.
The 2026 buyer is more price-sensitive than the 2021 buyer was. The seller who delivers a turnkey floor wins. The seller who hands the buyer a $4,000 problem and a credit gets nickel-and-dimed on the price.
If you're not sure which move makes sense for your specific home and market, connect with a Clever-vetted agent. They can walk through the math on your floors and your comps before you spend a dollar.
Why you should trust our advice
This guide is written and edited by me, Steve Nicastro, Managing Editor at Clever Real Estate and a former licensed Realtor in Charleston, SC. I closed over $6 million in transactions between 2020 and 2021, where I routinely advised seller clients on the LVP vs. hardwood vs. refinish decision before listing. I've personally bought and sold 30+ homes worth more than $8 million combined — 20 as a Realtor, 7 as an investor (including renovating multiple rental properties from carpet to LVP), and 3 as a FSBO seller.
Before joining Clever, I spent 6+ years as a senior writer at NerdWallet covering homebuying, mortgages, and personal finance. My real estate analysis has been cited in USA Today, the Associated Press, U.S. News & World Report, and the New York Times.
Clever's reporting on home-improvement ROI draws on three proprietary data sources: our 2025 American Home Buyer Report (1,000 buyers surveyed), our 2024 Home Renovation Trends Report (1,000 homeowners surveyed), and ongoing interviews with the 3,000+ top-performing agents in our nationwide network.
For this piece, I also drew on interviews with two licensed practitioners: Mitch Coluzzi (SoldFast, Des Moines, IA) and Corey Wayne Ogle (High Line 2 Hamptons, NYC).
