Cost vs. Value: The Home Improvement Projects With the Highest ROI in 2019

Posted on Jan 22 2019 - 4:57pm by Jameson Doris
#5

cost vs. value

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.

 

5 Comments so far. Feel free to join this conversation.

  1. Justin Phillips January 26, 2019 at 11:28 am - Reply

    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!

  2. Abigail McDonald March 21, 2019 at 4:57 pm - Reply

    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.

  3. Colleen Shriver, REALTOR March 22, 2019 at 6:38 am - Reply

    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.

  4. check us out May 15, 2019 at 10:53 am - Reply

    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.

  5. click here May 22, 2019 at 12:01 pm - Reply

    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.

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