The National Association of Realtors and the National Association of the Remodeling Industry recently conducted a joint study to find some of these answers. The resulting 2022 Remodeling Impact Report breaks down the average home remodeling costs by project and shows where you can add value to your home by remodeling.
Not surprisingly, the pandemic had a huge impact on home remodeling. Americans spent $420 billion on renovations in 2020. According to the study, most people take on home remodeling projects to replace worn-out finishes and materials or to add features and improve livability.
The study found that wood flooring was the best interior remodeling project, both in terms of recovering home remodeling costs and homeowners’ satisfaction after the project was completed. They calculated that wood floor refinishing recouped 147% of its cost and new wood flooring installation could provide a 118% return on investment. Insulation upgrades also can recover 100% of their cost.
Recognizing that financial gain is just one of the reasons to renovate your home, the study also looked at homeowner satisfaction, called the Joy Score. Projects receiving a perfect Joy Score included painting a room or the entire interior, wood flooring, insulation, closet renovations, and converting attic space to living space. Kitchen upgrades and renovations were close behind with a 9.8, though they’re likely to only recoup 67-75% of the cost when selling a home.
For the exterior, new roofing and garage doors were found to recover 100% of their cost when selling a home, and received Joy Scores of 9.2 and 9, respectively. The highest Joy Scores went to new exterior paint (9.8), new windows (9.6) and new steel or fiberglass doors (9.5).
The reasons to renovate your home are many, from upgrading to the kitchen of your dreams to getting the most value from your home remodel before you sell. It’s important to consider both the cost to remodel as well as the potential benefits, both to your personal happiness and to your real estate investment. Your local PureWest Christie’s agent can provide specific information on the value of remodel projects on your area, which will help you in both your home buying and selling decisions.
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