Even though it’s a seller’s market in many states, many homeowners choose to stay put and use their home equity to finance home renovations instead. While these improvements are nice amenities for the homeowner, they also increase home value. According to a report from the Joint Center for Housing Studies at Harvard University, spending on home remodeling was not only up in the U.S. pre-pandemic but is predicted to continue to increase as we move forward in time.
The recent strengthening of the U.S. economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity. The Joint Center’s stated in a press release that owners are projected to spend over $330 billion on home upgrades and replacements, as well as routine maintenance over the coming year.
Cost vs. Value Report
If you’re planning to renovate your home soon, you may be wondering which home renovations will get the most significant ROI. The new Cost vs. Value Report published by Remodeling magazine provides some terrific insight on that topic.
The report compares 21 of the most common home renovation projects and contains data for the entire country, by region, or by city. It found that homeowners nationally will not get as big of a return on their home renovations as they did in the past. On average, they should expect to recoup about 56% of their renovations’ costs, compared to 64% pre-pandemic.
Which Home Renovations Will Get the Biggest ROI?
Here are the top 15 home renovations that the report forecasts will get the most significant ROIs nationally, along with the percentage of costs that homeowners should expect to recoup if they sold their homes:
- Garage Door Replacement? 98.3%
- Manufactured Stone Veneer? 97.1 %
- Wood Deck Addition? 82.8%
- Minor Kitchen Remodel? 81.1%
- Siding Replacement? 76.7%
- Window Replacement with Vinyl Windows? 74.3%
- Universal Design Bathroom? 70.6%
- Bathroom Remodel? 70.1%
- Window Replacement with Wood Windows? 69.5%
- Roofing Replacement? 68.4%
- Fiberglass Grand Entrance? 67.6%
- Composite Deck Addition? 63.6%
- Bathroom Addition? 59.9%
- Major Kitchen Remodel? 59.0%
- Master Suite Addition? 56.6%
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