Remodeling Magazine has released its 34th annual Key Trends in the Cost vs. Value Report, providing homeowners with unbiased third-party reporting on remodeling trends, including expected project investment totals. The report analyzes the top 22 most common remodeling projects nationwide and determines the average amount homeowners can expect to invest in their upcoming projects.
Remodeling for Quality of Life
Despite constant market shifts and uncertainty over the past year with material delays, price increases, lifestyle shifts, and more, overall returns for remodeling projects nationwide remain minimally impacted.
Larger scale remodeling projects, such as kitchens and baths, are generally more volatile when it comes to value due to how individualized these projects can be; however, the demand for these larger, upscale projects has increased in the past year with the amount of time spent at home and changes in once “normal” routines.
Over the past year, the idea of “remodeling to stay” has grown and remains prevalent today. Homeowners continue to find extreme value in making their home a functional safe haven, uniquely designed for their families. Promoting a positive, functional, relaxing home atmosphere has never been more critical. This focus on the quality of home life has become an even more important conversation topic and design goal with our clients and their projects. The way we work, entertain, relax, educate, and live everyday life has changed; therefore, home design has naturally adjusted to complement individual family lifestyles.
“We’ve had more inquiries over the past year for addition and in-law suite inquiries, as well as specialty spaces like wet bars, movie theaters, and entertainment-focused basements for kids and guests. People want spaces that are always a sanctuary, whether they’re entertaining, eating, or sleeping,” says Advance Lead Designer Nicole.
Larger discretionary projects such as kitchens, baths, and additions are an opportunity for homeowners to choose exactly what they want to suit their home lifestyles, now more than ever. Previously, specialty projects such as laundry rooms, entertainment spaces, and home offices were often bonus project wish-list items. Today, they are essential for the majority of households.
Exteriors Hold Top ROI Spots
Exterior remodeling projects are historically at the top of the ROI list, and this year is no different. “First impressions” and “curb appeal” are common phrases in real estate, and with the sizzling housing market this past year it’s no surprise exteriors are top of mind for homeowners.
Garage door replacement remains the top exterior project with a 94 percent ROI, followed closely by manufactured stone veneer projects at a 92 percent ROI. Nine out of the top ten high-return projects are exterior replacement projects. If you are thinking about selling your home, it is clear that exterior facelifts will give you the most bang for your buck.
According to nationwide data, investing in a mid-range major kitchen remodel has increased to an average of $75,571, with a $43,364 value at sale. This means that as a homeowner last year you would have recouped 57 percent of the initial value if you were to sell your home. A larger or upscale major kitchen remodel investment is, on average, $149,079 and earns a 54 percent return on investment.
The average mid-range hall bath remodel investment has increased to $24,424 with an increased resale value of $14,671 and ROI of 60 percent. An upscale bathroom remodel, such as a master bath, is an average of $75,692 and sells for $41,473 with 60 percent ROI.
The 2021 Cost Vs Value Report also features an exciting new tool that allows homeowners to compare project averages and returns for specific area codes, making local remodeling cost estimates even more accessible for those considering a renovation. The cost data in the Cost vs. Value report includes a standard mark-up of 10% on materials and 10% on labor. Keep in mind this report is created by the real estate industry, the remodeling industry will tell you that these overhead percentages are unrealistically low, especially in today’s Covid market. A review by designers at Advance agreed that these final overall figures however are relatively accurate overall in their opinion.
Value Beyond Resale
While resale value is important to consider when planning a remodel, it is not the driving force behind renovations today. You may plan to sell your home eventually, but planning a remodel long before that time comes allows you and your family to enjoy the investment of living in a new space specifically designed for functional everyday living.
“We’ve seen an increase in homeowners wanting their new spaces to be designed specifically for their families and less geared towards resale. People want to create spaces that make being home more enjoyable,” says Advance Lead Designer Nicole.
At Advance Design, we want our clients to enjoy living in their new spaces for years to come and benefit from the investment they make into their homes. With our “Common Sense Remodeling” approach, renovating your home has never been simpler.
“We work hard to seamlessly blend our clients’ vision with timeless design to enhance everyday life while adding long-term resale appeal for when they do sell down the line,” says ADS owner Christine Jurs.
Take the first step in elevating your home life by sharing your vision with the Advance Design Studio team. Call us at 847-836-2600 or schedule an appointment to chat with a designer about your renovation.