The number of opinions on home remodeling is at least as large as the number of remodeling projects homeowners want to tackle. One constant, though, is how the project enhances the value of a home and, ultimately, its resale value.
Remodeling projects can be large (for example, adding a second floor to an existing house) or small (replacing the main entry door). On average, among 27 projects included in a recent survey, the average residual value one year after the project was completed was 64.4% of the project’s cost.
As a result, all projects are not created equal. According to the “Remodeling 2016 Cost vs. Value Report” from Hanley Wood, on a national basis only one remodeling project yields an increase in value that is more than the cost of the project. The other 26 projects return anywhere from around 91% of the cost to around 56% of costs.
Depending on the region of the country in which the house is located, there may be other projects that return more than their initial cost. In all, there were 77 U.S. markets where the return on investment exceeded 100%. The single project with the highest number of 100%+ returns was installing fiberglass attic insulation, a relatively inexpensive job but one with lasting value.
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