Thinking of making some changes – major or minor – to your home this year? According to the 2017 Cost vs. Value Report by Remodeling Magazine, your homeowner dollars are best spent on some of these renovation and home improvement projects. What they are might surprise you.
As a homeowner, when you think of the most popular renovation and remodeling projects, you’re likely thinking of bathroom and kitchen upgrades, new flooring and finished basements. Surprisingly, the projects with the biggest ROI (job cost versus resale value) were typically more specific improvements.
Trends From the Report
- There is still a lot of value in curb appeal. Just like last year, seven of the top 10 remodeling projects with the highest return of investment were exterior home improvements.
- Replacement still yields a greater return than remodeling. In general, replacement projects like entry doors, garage doors, siding and roofing saw greater returns than larger scale projects like additions and kitchen and bathroom remodeling.
- Smaller the cost, higher the value. Three of the top five ROI projects – attic insulation, steel entry door replacement and garage door replacement – were also the cheapest. In 2017, though, all of these projects saw a drop in cost recouped.
- Higher cost projects also saw the biggest value gains. Larger-ticket renovations like major kitchen remodels, two-story additions and family room additions also had the biggest increases in cost recouped.
- Wide range of cost recoup. The projects listed below are national averages, but if you look at data in specific markets, like the Pacific region, you find that the cost recoup is higher. For example, the national average minor kitchen remodel has a cost recoup of 80.2 percent. In the Pacific region, that cost recoup skyrockets to 95.8 percent.
- Energy efficiency is a smart investment. Adding fiberglass attic insulation has been the only home improvement project with a positive cost recoupment percentage for the last two years.
The National Average Top 10 Home Improvements for Cost vs. Resale Value
- Attic Insulation - 107.7%
- Entry Door Replacement (Steel) - 90.7%
- Manufactured Stone Veneer - 89.4%
- Minor Kitchen Remodel - 80.2%
- Garage Door Replacement - 76.9%
- Siding Replacement - 76.4%
- Deck Addition (Wood) - 71.5%
- Two-Story Addition - 71.7%
- Basement Remodel - 70.0%
- Family Room Addition - 69.3%
Want to learn more about how to finance your own home renovations? Download our free Rehab & Construction Guide for your options on including the cost of home improvements, renovations or remodeling into your mortgage.