WASHINGTON — Zonda Media has released its 35th annual Cost-to-Value (CVV) report outlining the top-grossing home improvement projects nationwide.
The report reveals that exterior replacement projects continue the multi-year streak of delivering the best return on investment (ROI) for homeowners.
Of the 22 renovation projects in the report, 11 are exterior replacement projects, all of which rank among the top 12 projects. Garage door replacement and manufactured stone siding projects topped the list of national averages in first and second place, with minor kitchen renovation in third.
“This reliably supports the idea that curb appeal always drives the highest prices in home sales,” said Clayton DeKorne, editor of REMODELING and JLC magazines. “The data consistently shows that buyers of existing homes place high value on two main features: a well-maintained exterior and a functional kitchen. This may be because many homebuyers use most of their equity when closing the home and want basic insurance for the near future. »
A review of annual trends shows that project costs have continued to rise, with a sharp increase last year due to pandemic-related supply chain disruptions and complicated global trade tariffs. This decline is, however, very slight compared to the dramatic declines in yields in 2020, confirming a great improvement from the dramatic upheaval caused by the pandemic.
The most notable increase in value occurred in the wooden deck project. This increase in value also corresponds to a sharp increase in the cost of wood decking (due to sharp increases in the cost of wood in 2021), representing only a modest increase in return on investment. But despite the increase in value and return on investment of wood decking, composite decking is still more popular overall, due to the long-term durability of composite decking.
The cost/value ratio seeks to answer the question, “How much value does a particular renovation project add to the sale price of a home?” This year’s results were determined in part by data collected from surveys of real estate professionals as well as data provided through Zonda’s collaboration with Verisk’s remodeling estimating solution, XactRemodel®. . The solution is powered by accurate local pricing data that is researched and verified by Verisk’s pricing data team. The new collaboration allows renovators, homeowners and real estate investors to quickly research the average cost of 22 renovation projects versus the value those projects retain for resale. Data is available for 150 regions spanning the United States. The cost vs value ratio methodology also looks at a range of other variables, including local GDP, existing home sales, existing home values, changes in existing home sales and existing home values, even construction starts, among others.
Top 10 Costs vs. Value: National Averages
1. Garage door replacement, 93% return on investment
2. Manufactured stone veneer, 91% ROI
3. Minor Kitchen Renovation, 71% ROI
4. Fiber cement siding replacement, 68% return on investment
5. Vinyl window replacement, 67% return on investment
6. Vinyl siding replacement, 67% return on investment
7. Replacing wooden windows, 66% return on investment
8. Addition of wooden deck, 65% return on investment
9. Replacement of the steel entrance door, 64% return on investment
10. Added composite platform, 62% ROI
To read the full report, view geographic cost-to-value averages, and more information on the survey results, visit http://www.costvsvalue.com.