With all of the many uncertainties that we have encountered over the course of the last year, the housing market has shown unprecedented strength and continued growth. One of the major constants in the real estate industry is the value that home improvement projects add to the home. Remodeling magazine’s Cost vs. Value Report has even stated that exterior home improvement projects took the lead in 2021.
The report has stated that 11 of the top 12 projects that garner the highest return on investment (ROI) this year are exterior home improvement projects. The only non-exterior project that made the list was minor kitchen remodeling which ranked at number 3 with 72% of the cost.
One significant takeaway from the report is that the rising costs of raw materials has had a drastic impact on home improvement projects. Home improvement costs have been on the rise since 2014, but this year has seen a vastly larger increase in prices. The report states that there has been an average of -3% ROI for all home improvement projects.
The sharp increase in costs over the last year was largely brought on by disruptions in the supply chain and complicated by global trading tariffs, largely created by the pandemic. Also, with witnessing an increase in costs, the value-over-cost ratio has been steadily declining. We have provided the 22 projects ranked by the highest percentage of ROI nationally:
The 2021 Cost vs. Value Report compared the average costs for 22 popular remodeling projects and how much of that value they retained at resale in 150 different U.S. housing markets.
View the full report, including project descriptions and city-level data. https://www.remodeling.hw.net/cost-vs-value/2021/
