Home Remodeling Costs –
Cost vs Value Report by Hanley Wood
The remodeling industry has an excellent trade magazine that issues a Cost vs Value report each year on different types of remodeling projects.
Remodeling Cost vs. Value Report 2011-12
Three years of dropping construction costs have not been enough to counter the steeper drop in house prices. But the rate of decline is slowing, and some markets are showing signs of a steady if slow recovery.
Excerpts from an article By: Sal Alfano
…”There is evidence that the future for remodeling is bright. Hanley Wood’s recent “Housing 360” research on consumer attitudes toward housing shows that 42% of homeowners believe it is a good time to remodel. (Hanley Wood publishes REMODELING magazine.) That number increases to 56% when household income is $100,000-plus, and it is 54% when home value is more than $500,000.
The research also suggests that tight credit is not a major impediment — 80% of respondents say they pay for remodeling with cash savings. And it confirms that 60% of homeowners 50 and older intend to stay in their homes through retirement, which will create demand for aging-in-place remodeling.
Replacements Still on TopThe Housing 360 research also shows that maintenance, repair, and replacement projects take precedence with homeowners. Cost vs. Value data confirm this once again this year, as replacement projects continue to perform better in resale value than other types of remodeling projects (see “Replacement vs. Remodeling,”). Seven of the 10 top-ranked projects are siding-, window-, or door-replacement projects and their cost-value ratio is an above-average 71.6%.
The high value of replacements is partly due to their relatively low cost — with the exception of the roofing projects, all replacement projects are priced at less than $19,000. In addition, most replacement projects immediately improve curb appeal, and the use of durable, low-maintenance replacement materials appeals to home buyers who increasingly are looking to reduce both the operational and maintenance costs of their homes.
Interior Remodeling: The Attic Bedroom project is in the top 10 for the third year in a row, despite being the most expensive project in that group, averaging $50,148 nationally. One possible reason for the high value placed on this project, which is ranked third overall (72.5%), is that it is the least expensive way to add a bathroom and bedroom, and it does so within the home’s existing footprint.
It is also worth noting that Minor Kitchen Remodel is fourth overall (72.1%), two places better than last year. At an average cost nationally of just under $20,000, this project is the interior version of a replacement and includes new cabinet door and drawer fronts and hardware, as well as new countertops and appliances.
Not surprisingly, since 2004, when Minor Kitchen Remodel was added to the project list, it has been the best-performing K&B project in every year but one.
—Sal Alfano, editorial director, REMODELING.
Visit the official website of the Cost vs. Value Report to download a PDF containing side-by-side national, regional, and city data tables. Or get the updated 2011–12 Cost vs. Value iPhone app at the AppStore.”