This year’s Cost vs. Value Report from Remodeling Magazine reports an overall decline cost-value ratio compared to 2017 (56.8% vs. 64.3%). The report looks at 21 popular home remodeling projects and examines the value they retain across 100 U.S. markets. While the 2018 report shows a lower rate of return on average across all project types and markets, there are some positives to highlight for homeowners looking to start a remodeling project this year - especially on the West Coast.
5 Takeaways from the 2018 Cost vs. Value Report
- Replace Doors, Windows, and Siding for High Recoups - Swapping out or upgrading your garage door, entry door, siding, or vinyl windows are all small, weekend projects that won’t break the bank and have a high cost recoup percentage (74% - 98%).
- High Cost, Low Return - Considering an upscale master suite addition or major kitchen remodel in 2018? Beware, you’ll likely shell out a hefty chunk of cash ($125k+) for a relatively low (48% - 53%) cost recoup. However, keep in mind that…
- Upscale Remodel Projects Yield the Highest Resale Values - Generally speaking, upscale master suite additions, major kitchen remodels, and bathroom additions will fetch the highest resale values, ranging from $35,000 to well over $100,000!
- Turning a Profit On the West Coast - The Pacific region, which includes Alaska, Hawaii California, Oregon, and Washington, was the only region in this year’s report with projects that actually recouped 100%+ of the job cost (midrange manufactured stone veneer installation (125.5%) and upscale garage door replacement (120.8%).
- Movers and Shakers in 2018 - Wood deck additions, minor kitchen remodels, and Universal Bathroom Design are some of the home remodeling projects recouping more compared to 2017. If you’ve been contemplating any of these projects, 2018 is the year to make it happen.
Other Key Trends to Consider
- The natural look is in, as manufactured stone veneers and wood deck additions were at the top of the list in terms of cost recouped (97.1% and 82.8%, respectively).
- High-tech metro areas on the West Coast led the way for the Pacific region with places like San Francisco, Seattle, and Silicon Valley posting high rates of return on many remodeling projects (100%+ in some cases).
- San Diego continues to post solid numbers in these Cost vs. Value reports, with more of the same in 2018. As you can see below, San Diego homeowners enjoy favorable cost recouped percentages vs. both the regional and national averages.
Looking for more remodeling trends? Our complete 2018 Home Remodeling Trends guide has you covered!