Here's the Top 5 Trends in Home Renovation
If you read my email on Friday, I told a story about how the cost of repairs does not always amount to an equal increase in value. Over the weekend, I have had time to go over the report and a few items stuck out like a hipster at the SuperBowl.
I think that you will find value in these recent trends if you are planning a repair or remodeling project.
So, here are my Top 5 Trends from the report.
- The increase in new construction prices are helping to lift the value of renovation projects even as costs are rising. The thirty projects studied this year resulted in an average ROI of 64.4%. This is up from 2015 with an ROI of 62%.
- The average renovation project cost 4.7% more this year than the previous year. This is a trend that we expect to continue. As new home construction increases, it will pull more labor away from the renovation market resulting in higher prices.
- When you look at the individual projects, the ones that gained the most in value are the higher dollar “upscale” projects. These projects include major kitchen remodels, master suite renovations and second story additions. Even with big gains, the high dollar items offer some of the lowest returns on investment of the projects studied.
- Energy Efficiency projects were often left off the report in years past due to low returns on investment. With a renewed interest in energy efficiency, a fiberglass insulation project was added to the list this year and netted out a positive return of $116 for every $100 invested. Energy efficiency will continue to grow in popularity and importance to buyers.
- Simple and low cost projects tend to top the list for total value returned. Although, the big projects gained the most value, they still do not come close to a 100% return on your investment. Smaller projects that cost less than $5,000 continue to lead the pack when looking at the total ROI.
I hope you find these trends helpful when you are considering your home improvement projects for 2016.
If you did not get a copy of the report on Friday, let me know and I will send you one today.
P.S. If you need a referral for a good contractor, you can reply to this email for help. These guys are hard to find!
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