The key trends in the 2020 COST VS VALUE Report shows a predictable increase in costs for 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale. This slight downturn on the return on investment is relative to the trends seen this year’s report from 2019.
On average the cost recoup are above 100% for some remodeling projects. This indicates that those projects are worth more in resale value than the owner spent to construct them. It is usually tied to a particularly hot real estate market or to specific projects that are either in high demand from buyers.
Keep in mind when comparing costs in the Cost vs. Value Report to local costs for specific projects, homeowners continue to scale back their remodeling plans by choosing either to reduce square footage below that specified here, or to perform the work in phases to spread the cost over time. [2]
The outlook for 2020 looks calm. Remodeling activity is growing at a slower rate than in years past, but it continues to grow. Real Estate Professionals and home buyers are feeling angst and excitement depending on the news. [3]
Resale value is one factor among many that a homeowner must take into account when making the decision to remodel. View the full report in the Pacific Region, including project descriptions and city-level data, here.
Here are the top 10 projects with the greatest ROI in the Bay Area, according to the 2020 Cost vs. Value Report of the Pacific Region:
Manufactured Stone Veneer – (119.5% ROI)
Average Cost: $10,175
Average Resale Value: $12,157
Garage Door Replacement – (117.1% ROI)
Average Cost: $3,874
Average Resale Value: $4,537
Entry Door Replacement (Steel) – (87.9% ROI)
Average Cost: $2,048
Average Resale Value: $1,801
Minor Kitchen Remodel (Midrange) – (86.6% ROI)
Average Cost: $26,150
Average Resale Value: $22,657
Siding Replacement (Fiber-Cement) – (78.0% ROI)
Average Cost: $20,064
Average Resale Value: $15,647
Deck Addition (Wood) – (77.1% ROI)
Average Cost: $18,059
Average Resale Value: $13,924
Roofing Replacement (Asphalt Shingles) – (75.3% ROI)
Average Cost: $27,769
Average Resale Value: $20,902
Siding Replacement (Vinyl) – (74.9% ROI)
Average Cost: $16,937
Average Resale Value: $12,687
Window Replacement (Vinyl) – (74.5% ROI)
Average Cost: $19,184
Average Resale Value: $14,296
Window Replacement (Wood) – (72.9% ROI)
Average Cost: $22,976
Average Resale Value: $16,750
This site compares average costs for 22 remodeling projects with the value those projects retain at resale in 101 U.S. markets. For more detailed information, click here. [1]
Disclaimer: The Cost vs. Value Report does provides an accurate snapshot of the national housing market, however it cannot be applied accurately to an individual remodeling project for a particular home on a particular local street address. The best course of action, at a local level, is to obtain construction cost estimates from reputable and experienced local remodelers and also to talk with an knowledgeable, experienced Realtor about home prices in the neighborhood.
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