Remodeling Cost vs Value Report 2013
Remodeling Magazine has issued its 2013 “Remodeling Cost Value Report.” This report is designed to give homeowners and contractors a breakdown of the return they can expect from their home remodeling projects and how that return will affect the overall resale value of their home. This report is released each year and often contains information about new remodeling trends which help homeowners understand what potential home buyers are expecting to see in an up-to-date property. Projects are broken down by type (kitchen, bath, exterior), cost (affordable, mid-range, upscale) and expected return.
To start off, for the first time in six years, the overall average cost-value ratio actually improved, reaching 60.6% making it 2.9 points better than the 2011–12 number, which hit a low of 57.7% (the lowest point since at least 2001), and is more than a half-point better than the 60.0% ratio from two years ago.
Cost recouped percentages were up for all measured projects in the survey which is a complete change from the last report, with the largest gainers being replacement projects, which have historically outperformed discretionary projects. Lower construction costs had a strong inlfuence on the market and stablizing resale values played a large role also.
According to the report, costs stabilized in 2011–12, decreasing just 1.9%, but once again a larger downward slide in average value (5.6%) pushed the cost-value ratio lower. This year, that trend reversed itself as another big drop (6.0%) in construction costs met up with a modest decline (1.4%) in value.
Window replacement projects are among the seven of the top 10 projects in this year’s report in addition to siding-, entry door- or garage door-replacement projects that collectively generate an above-average cost-value ratio of 74.6%. Its important to remember that some markets perform better than others and that many variables influence the values.
The report breaks down projects on a regional basis so that homeowners across the country can understand what to expect from their surrounding market. View the map here.
Information presented as compiled in the Remodeling 2013 Cost vs. Value Report (www.costvsvalue.com)