Remodeling Magazine has released its 35th annual Cost vs. Value Report to provide homeowners across the country with unbiased reporting on remodeling trends. The report helps educate homeowners about what they can expect, on average, to invest in their upcoming projects, as well as the possible ROI when it comes time to sell. Twenty-two of the most common remodeling projects nationwide are analyzed.
More Than Just Resale Value
While the Cost Vs Value Report historically focuses on the potential ROI of a home remodel, the report acknowledges that there are many different “values” that lead people to remodel that should be considered.
“There is more than one kind of value. Lifestyle enhancement or increased accessibility or the ability to accommodate a growing family are all reasons homeowners take on remodeling projects, each with its own type of value.”
While resale value is an element to consider when planning a remodel, it is not the driving force behind renovations today. Planning a remodel long before you begin to think of selling your home allows you and your family to enjoy the investment of living in a new space specifically designed for your family and lifestyle.
Homeowners continue to find extreme value in making their homes uniquely designed for their families’ lifestyles, needs, and personalities. Promoting a safe, functional home atmosphere is crucial. Increasing the quality of home life is an important conversation topic between clients and their designers. A successful remodel caters to the way families work, entertain, relax, and live everyday life by utilizing unique design solutions to make everyday life more functional and enjoyable.
The report also notes that overall returns for remodeling projects nationwide remain minimally impacted over the past two years. “Despite the sharp cost increases for building materials in 2021, the decline in overall ROI in the 2022 report was a modest 1.2%, confirming the resiliency of robust remodeling markets amid economic concerns and supply-chain challenges.”
Value of Large-Scale Remodels
Larger scale remodeling projects such as kitchens, baths, and additions are an opportunity for homeowners to choose exactly what they want to suit their home lifestyles. These projects tend to be more volatile in value because of how individualized they are. Despite this, the demand for large-scale remodels continues to increase over the past two years as people find the value in having home spaces fit for their families.
Along with these large or multi-room remodels, our clients frequently add functional specialty spaces to their must-have list. This includes laundry rooms, wet bars, home theaters, and entertainment-ready basements for family and friends.
Exteriors Earn Highest ROI
Exterior remodeling projects are historically at the top of the ROI list. “First impressions” and “curb appeal” are common phrases in real estate, and with the constantly-changing state of the housing market over the past two years it makes sense that exteriors are top of mind for homeowners.
Garage door replacement remains the top exterior project with a 95.2 percent ROI, followed closely by manufactured stone veneer projects at an 88 percent ROI. Seven out of the top ten high-return projects are exterior replacement projects. If you are thinking about selling your home, an exterior facelift will likely give you the most bang for your buck.
A Few Project-Specific Averages
According to the report’s research on Midwest averages, investing in a mid-range major kitchen remodel has increased to an average of $88,796, with a $50,135 value at sale. This means that as a homeowner last year you would have recouped 56.5 percent of the initial value if you were to sell your home. A larger or upscale major kitchen remodel investment is, on average, $172,484 and earns a 52.4 percent return on investment.
The average mid-range hall bath remodel investment has increased to $31,521 with an increased resale value of $17,946 and ROI of 56.9 percent. An upscale bathroom remodel, such as a master bath, is an average of $92,873 and sells for $51,292 with 55.2 percent ROI.
Larger addition projects are included in the report as well. The report states that mid-range master suite additions now average around $202,757 with a 49.8 percent ROI. Explore more investment averages and what each project scope includes here.
The 2022 Cost Vs. Value Report also includes a feature that allows homeowners to compare project averages and returns for specific area codes, making local remodeling cost estimates even more accessible if you are planning to remodel.
The most accurate estimate you can obtain for your remodel, however, will be through a local industry professional you can trust. At Advance Design we will walk through your home goals with you thoroughly, so that we can provide accurate planning tools tailored to your unique home project. We want homeowners to maximize the benefits of the investment they make into their homes, and with our “Common Sense Remodeling” approach, renovating your home has never made more sense.