This Year’s Best Remodeling Projects for ROI
In 2018 we experienced an increase in the cost of building materials which affected building and remodeling project nationwide. Because of this, the return on investment for home improvement projects has trended downward according to Remodeling Magazine’s Cost vs. Value Report. Replacement projects were hit harder than larger projects as they are mostly material costs versus labor costs.
“With the increasing costs of building materials and labor, we urge remodelers to think like real estate professionals first,” says Clayton DeKorne, editor-in-chief of Remodeling magazine. “When you adjust your focus to think like a broker first, you can dull clients’ No. 1 pain point—cost—with a discussion of the amount that can be recouped.”
Below are 5 projects with the highest ROI in the high range price tier:
Garage Door Replacement (97.5% ROI)
- Average Cost: $3,611
- Average Resale Value: $3,520
Window Replacement (Vinyl) (73.4% ROI)
- Average Cost: $16,802
- Average Resale Value: $12,332
Grand Entrance (Fiberglass) (71.9% ROI)
- Average Cost: $8,994
- Average Resale Value: $6,469
Window Replacement (Wood) (70.8% ROI)
- Average Cost: $20,526
- Average Resale Value: $14,530
Bathroom Remodel (60.2% ROI)
- Average Cost: $64,743
- Average Resale Value: $38,952
Below are 5 projects with the highest ROI in the mid-range price tier:
Manufactured Stone Veneer (94.9% ROI)
- Average Cost: $8,907
- Average Resale Value: $8,449
Minor Kitchen Remodel (80.5% ROI)
- Average Cost: $22,507
- Average Resale Value: $18,123
Deck Addition (Wood) (75.6% ROI)
- Average Cost: $13,333
- Average Resale Value: $10,083
Siding Replacement (75.6% ROI)
- Average Cost: $16,036
- Average Resale Value: $12,119
Entry Door Replacement (Steel) (74.9% ROI)
- Average Cost: $1,826
- Average Resale Value: $1,368
The Cost Vs. Value Report had polled over 3,000 real estate professionals for popular home improvement projects in 136 markets in the United States. While these numbers are based on their opinions, we also have to adjust regionally for some things that are more valued in our market here in South Florida. For one, high impact windows are most likely valued at a higher cost to replace yet also probably have a higher ROI as a result.
If you are considering a home improvement project and would like some real estate advice, please feel free to reach and contact me. I am happy to help.