With so much at-home time due to the pandemic, higher home prices and rising interest rates, many people have chosen to stay put and make their homes and yards more functional and comfortable. In fact, in a recent survey, 72 percent of homeowners said they’d prefer to make home upgrades instead of selling their home. What remodeling projects are the most popular, and what’s their return on investment?
Kitchens and Bathrooms: The Most Popular Remodeling Projects
According to Houzz, kitchens and bathrooms are still the most popular remodeling projects. Over a quarter of the renovations are happening in the kitchen. Bathroom renovations run a close second. The National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI) have found that not only do these updates bring people more happiness in their homes, they also can have a good return on investment. Their recent Remodeling Impact Report shows that a complete kitchen renovation has a return of 75 percent of its costs. They say a bathroom renovation brings a 71 percent return.
But how much a kitchen or bathroom remodeling project will add to the value of your home will vary. Your home’s location, floorplan and what finishes and layouts you choose are just a few of the important factors. If you’re thinking about undertaking an expensive remodel of these rooms or any other parts of your home, it’s best to use professionals for design, layout and construction. And, even if you don’t plan to sell your home in the near future, talk to your real estate agent about the project. We can give you valuable feedback about what buyers are looking for and which remodeling projects have the best return in your neighborhood.
Living or family rooms are the next most popular rooms to renovate. These are followed by bedrooms, laundry rooms, closets, dining rooms and home offices. Adding those rooms can be costly, and the return on investment isn’t very high. But improving them can be much more affordable. Many people are updating decor, replacing flooring, hardware and light fixtures, and painting.
Roofing, Paint and Windows are Top Exterior Projects
Roofing, exterior paint and windows are the most common exterior upgrades. NAR and NARI estimate that there’s a 100 percent return on new roofing and a 67 percent payback on vinyl windows.
Painting a home’s exterior is also high on the renovation list. Professionally completed exterior painting, with the right colors, can bring a high return on investment along with plenty of satisfaction about your home’s new look.
Smart, High-Tech and Security Projects Are Popular
Homes are getting smarter while becoming more secure. Outdoor, smart security cameras are top on the list of smart renovations. They’re followed by other smart-tech devices like light fixtures, thermostats and wireless doorbell cameras. There’s not a lot of data about the investment return on these smaller improvements, but lower-cost remodeling projects usually bring higher returns.
Remodeling Projects: Do Your Homework
Updates that improve the use and enjoyment of your home are great. They’re even better if they help pay for themselves down the road. And now that renovating has become more costly, that’s even more important. If you’re doing an upgrade for your own pleasure, research your options and costs. If you’re worried whether your remodeling project will offer a high return on your investment and effort, contact me to schedule a free consultation.