The latest trends in home improvement ROI
Aiming to provide homeowners with important knowledge as it relates to making decisions on how to make the best financial decisions when it comes to updating their home, the latest Cost vs. Value report was just released.
Keep reading to learn which improvement projects return the most ROI and what the latest trends are in the remodeling world.
What’s new for 2021 in home improvement
In the most recent findings, the report shows exterior updates are on the rise, which is likely a result of COVID, as more and more homeowners are expanding outdoor entertaining spaces.
Items like siding replacement and window replacement yield 68% and 67% ROI, respectively.
Coming in at the best project in terms of return on investment for many, many years now, a garage door replacement yields a 94% ROI when you sell. Typically costing homeowners about $3,900, this is an investment you can be sure of.
Deck improvements, while still popular, are showing to have slightly less of a return, largely due to the rising costs of lumber in light of the COVID crisis disrupting the supply chain. It’s likely that ROI for deck improvements will pick up as the supply chain normalizes over the next year or so.
At an average cost of $16,766 for a wood deck, right now, homeowners can expect to recoup about 66% of that project cost. Going with composite will cost you a bit more, coming in at about $22,426 and recovering 63% when it comes time to sell.
If you plan to sell soon but still want an updated kitchen, the report shows it’s best to spring for only a minor kitchen update. Costing an average of $26, 214, homeowners can usually expect to get about 72% when it comes time to sell.
A minor kitchen update includes replacing old cabinet doors with new shaker-style doors, purchasing new hardware, replacing oven range and refrigerator, replacing laminate or old style countertops for engineered stone, adding new resilient flooring and painting walls, trim and ceiling.
Compared to a major kitchen remodel, which costs about $75,571 and recoups 57%, a minor remodel is best suited to homeowners selling soon or in the next 3-5 years.
A midrange bathroom remodel will cost homeowners an average of $24,424 and return about 60% when the home is sold. This figure is down from 2018, when homeowners could expect to recover around 70%.
With remodeling costs on the increase and ROI on the decline, it makes sense to do a smaller bathroom remodeling project if you plan to sell in the next few years.
Interested to see which other home improvement projects made the list? Find the full report here.