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. 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.
Related: 6 Costs Homeowners Overlook and How to Pay for Them
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.
"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."
Nationally, here are the five projects with the greatest ROI in the report's mid-range cost category:
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
And the five projects with the greatest ROI in the report's upscale cost category are:
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
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% ROI)
- Average Cost: $56,906
- Average Resale Value: $31,430
Master Suite Addition (59.4% ROI)
- Average Cost: $130,986
- Average Resale Value: $77,785
Bathroom Addition (60.6% ROI)
- Average Cost: $47,427
- Average Resale Value: $28,726
Roofing Replacement (Metal) (60.9% ROI)
- Average Cost: $38,600
- Average Resale Value: $23,526
Major Kitchen Remodel (62.1% ROI)
- Average Cost: $66,196
- Average Resale Value: $41,133
And the five projects with the lowest ROI in the upscale cost category are:
Master Suite Addition (50.4% ROI)
- Average Cost: $271,470
- Average Resale Value: $136,820
Bathroom Addition (58.1% ROI)
- Average Cost: $87,704
- Average Resale Value: $51,000
Major Kitchen Remodel (59.7% ROI)
- Average Cost: $131,510
- Average Resale Value: $78,524
Bathroom Remodel (60.2% ROI)
- Average Cost: $64,743
- Average Resale Value: $38,952
Window Replacement (Wood) (70.8% ROI)
- Average Cost: $20,526
- Average Resale Value: $14,530
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. View the full report, including project descriptions and city-level data, here.
How is it that window replacement (wood) in upscale remodel is both a great ROI and a bad ROI? Seems that data is off somewhere. Also, very curious to see where basement finishing comes in on this scale. It seems that I get that question almost daily!
For the Rochester, N.Y. area, these prices are too high. However, in some metropolitan areas and some states (California for example) the improvements may be in line. My son and his wife living in Silicon valley, converted a garage and added some sq ft. and I was amazed at the cost. Code requirements complicated the original plans to add extra costs as well.
I live in a resort where costs are higher va my overall State and I just received a bathroom remodel of $13,000 and Inthougjt that was crazy! Also, in my market certain updates are required to get a sale. Different regions receive a different ROI on each item.
Home or resort staging is very expensive nowadays but maybe some of the prices are too high or maybe it is not purchased from a direct seller. Maybe these prices will still be changing in the midst of time.
I think the prices will vary from different places and I believe that staging is an expensive idea. This depends on the quality of the work and design choices as well.
The cost of remodeling is increasing day by day. I got amazed to see the Cost vs. Value Report of 2019. I remodeled my kitchen in 2017 at a very reasonable price from San Diego Home Remodeling. I think, at that time remodeling rates were reasonable.
I just read some comments that maybe the pricing is not from the direct supplier so maybe I can put this as a basis only for checking the cheapest price yet the same quality.
I think it is really possible to have different prices since it was not stated there that they got it wholesale or in retail price. I can only get this as my basis if I want to get the good quality with its cheap price.
The cost of home improvement in California has been on the rise and we can see why.
Great post! This is really informative.
I am having all your home improvement services for the media dn their informative contracts. They all interested in having knowledge about home improvement and home renovation and construuctions services.
Great! Thanks for sharing this useful post!
Great info. We’ve seen an increase in outdoor patios and outdoor living projects recently. This is helpful competitive info. Thanks for putting this together!
Nice informative post! Very helpful post about home improvement projects. Thanks for sharing the information.
Good job. Was looking for this kind of information for a long time.
Go for finished holders, finished materials, and finished tapestries or blinds. A smidgen to a great extent will go a long away against the perfection of the ledges, the table, and the cupboards.
Amazing post! I really appreciate that you shared this informative post with us. Thanks for sharing and keep up the good work.