×

Projects with the highest return on investment

Are you looking to remodel your home? Remodelers across the country took a hit last summer as the cost of building materials spiked dramatically, and the picture for 2019 isn’t much rosier, according to RIS Media.

The percentage of return on investment (ROI) is projected to trend downward for all the replacement projects listed in Remodeling magazine’s newly released Cost vs. Value Report. Larger indoor remodel projects took a hit as well, but weren’t impacted as greatly as replacement projects as they rely more on labor costs rather than material costs. Nationally, here are the five projects with the greatest ROI in the report’s mid-range cost category:

• Manufactured stone veneer — 94.9 percent ROI, with an average cost of $8,907 and average resale value of $8,449;

• Minor kitchen remodel — 80.5 percent ROI, with an average cost of $22,507 and average resale value of $18,123;

• Wood deck addition — 75.6 percent ROI, with an average cost of $13,333 and average resale value of $10,083;

• Siding replacement — 75.6 percent ROI, with an average cost of $16,036 and average resale value of $12,119;

• Steel entry door replacement — 74.9 percent ROI, with an average cost of $1,826 and average resale value of $1,368.

The five projects with the greatest ROI in the report’s upscale cost category are:

• Garage door replacement — 97.5 percent ROI, with an average cost of $3,611 and average resale value of $3,520;

• Vinyl window replacement — 73.4 percent ROI with an average cost of $16,802 and average resale value of $12,332;

• Fiberglass grand entrance — 71.9 percent ROI, with an average cost of $8,994 and average resale value of $6,469;

• Wood window replacement — 70.8 percent ROI, with an average cost of $20,526 and average resale value of $14,530;

• Bathroom remodel — 60.2 percent ROI, with an average cost of $64,743 and average resale value of $38,952.

Nationally, and on the other end of the spectrum, here are the five projects with the lowest ROI in the mid-range cost category:

• Backyard patio — 55.2 percent ROI, with an average cost of $56,906 and average resale value of $31,430;

• Master suite addition — 59.4 percent ROI, with an average cost of $130,986 and average resale value of $77,785;

• Bathroom addition — 60.6 percent ROI, with an average cost of $47,427 and average resale value of $28,726;

• Metal roofing replacement — 60.9 percent ROI, with an average cost of $38,600 and average resale value of $23,526;

• Major kitchen remodel — 62.1 percent ROI, with an average cost of $66,196 and average resale value of $41,133.

The 2019 cost vs. value report surveyed more than 3,200 real estate professionals about returns for 22 popular renovation projects in 136 different U.S. housing markets — up from 100 markets last year.

And remember, the next time you are in the market to buy or sell your home, contact a Realtor member of the Warren Area Board of Realtors.

This article was provided by the Warren Area Board of Realtors.

COMMENTS