Home renovations can increase or decrease a home’s value, and to get an idea of what renovations will do to your home’s value, it’s essential to understand the local housing market. Going overboard with renovations by upgrading beyond what is appropriate for the surrounding homes and area can cost you dearly.
Renovations and upgrades can increase a home’s return on investment (ROI). Some of the upgrades that generate the best returns on investment and cost recovery include projects that increase efficiency and reduce bills, such as replacing windows; those that provide more livable area for relaxation, such as patio additions; and those that increase one of the homeseller’s greatest tools – curb appeal, like replacing the front door.
With home prices rising in many parts of the country during the pandemic, many homeowners have put their homes up for sale. They also hire professionals to do home renovations that will help increase their home value and help sell their home.
To help homeowners get an idea of which home renovation projects will be most valuable, Extra Space Storage analyzed data from the 2021 Remodeling Cost vs. Value from Zonda Media to determine the 10 home improvement projects with the highest percentage of their labor costs recovered, or the best return on investment.
To determine the 2021 results, the report used data from 2017 to 2019 on joint projects completed by approximately 200,000 home improvement professionals that can be priced accurately, which is why products with styles or Specific finishes, or projects priced by specific region or climate, are not included. The analysis applies a statistical model to older data, based on recent construction cost estimates and economic indicators, such as income, employment and market housing, to create the 2021 best estimate of the cost of construction. a renovation project and its resale value.