Cost VS Value
Remodeling Magazine has issued its 2019 “Remodeling Cost Value Report.” This report is designed to give homeowners and contractors a breakdown of the return they can expect from their home remodeling projects and how that return will affect the overall resale value of their home.
This report is released each year and often contains information about new remodeling trends which help homeowners understand what potential home buyers are expecting to see in an up-to-date property. Projects are broken down by type (kitchen, bath, exterior), cost (affordable, mid-range, upscale) and expected return.
Overall the changes since last year are modest but the 2019 Cost vs. Value report reflects the robust market that the remodeling industry has enjoyed over the past year.
All projects covered in the report show an increase in value over the previous year, as reported by real-estate professionals in 136 metro areas. Tarrifs have had an impact on increased costs so this has led to slight downturns in the percentage of costs recouped for a number of projects, but overall the returns are up slightly compared to last year.
There has been a slight uptick in the year-over-year percentage change for most upscale projects. While some of the big-ticket discretionary remodeling projects tend to provide a lower rate of return than many more modest replacement projects the year-over-year changes in the percentage of costs recouped from upscale projects have increased at a much greater rate, suggesting that buyers of existing homes are willing to invest a little more for luxury these days.
Typically a push towards extravagant spending is a strong sign of consumer confidence.
This year, Vinyl Replacement Windows will reward you with 73.4% of your investment recouped showing in the TOP 7 for ROI.
Window replacement projects are among the higher ROI projects in this year’s report in addition to stone veneer-, decks-, entry door- and garage door- replacement projects that collectively generate an above-average cost-value ratio. It’s important to remember that some markets perform better than others and that many variables influence the values.
The report breaks down projects on a regional basis so that homeowners across the country can understand what to expect from their surrounding market.
Information presented as compiled in the Remodeling 2019 Cost vs. Value Report (www.costvsvalue.com)