We are frequently asked by our clients whether they will get back the money they put into remodeling when they decide to sell.
In 2005-06, during the height of the housing boom, you could recoup 90% to 100% of your cost for many home improvement activities. And in hot areas – such as Washington, DC where we’ve done some design projects – you could recoup more than 100% of your cost on kitchen and bath remodeling as well as many outdoor rooms.
Today the picture is quite different; the regional averages show few home improvements return more than 80-90% of their cost and most return between 60-75%.

For the past 22 years, Remodeling Magazine has looked at the relationship between remodeling costs and resale value. We’ve included a table, below, that compares the regional averages for projects during 2009-2010 year with the previous 2008-2009 year.
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| Mid-Range Projects |
Job Cost |
09-10 |
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Additions |
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Deck Addition (wood) |
$11,207 |
84.1% |
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Deck Addition (composite) |
$15,724 |
71.5% |
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Two-Story Addition |
$144,325 |
66.1% |
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Family Room Addition |
$86,854 |
62.3% |
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Master Suite Addition |
$97,165 |
58.3% |
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Garage Addition |
$55,525 |
56.2% |
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Bathroom Addition |
$39,046 |
59.5% |
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Backup Power Generator |
$13,686 |
56% |
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Sunroom Addition |
$69,388 |
52% |
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Remodeling |
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Attic Bedroom |
$52,668 |
83.6% |
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Minor Kitchen Remodel |
$21,951 |
81.5% |
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Basement Remodel |
$62,067 |
75.4% |
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Major Kitchen Remodel |
$58,996 |
72.9% |
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Bathroom Remodel |
$16,142 |
71% |
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Home Office Remodel |
$29.076 |
47.8% |
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Replacement |
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Siding Replacement (vinyl) |
$10,969 |
86% |
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Window Replacement (wood) |
$12,199 |
79.1% |
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Window Replacement (vinyl) |
$11,155 |
82.3% |
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Roofing Replacement |
$22,463 |
67.4% |
| Upscale Projects |
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Additions |
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Master Suite Addition |
$225,995 |
55.7% |
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Garage Addition |
$87,230 |
55.9% |
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Bathroom Addition |
$75,812 |
57.9% |
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Deck Addition (composite) |
$37,745 |
60.8% |
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Remodeling |
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Major Kitchen Remodel |
$111,794 |
63.2% |
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Bathroom Remodel |
$52,295 |
61.6% |
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Replacement |
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Roofing Replacement |
$37,359 |
60.5% |
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Window Replacement (wood) |
$17,816 |
71.5% |
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Window Replacement (vinyl) |
$13,862 |
76.5% |
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Siding Replacement (fiber-cement) |
$13,287 |
83.6% |
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Siding Replacement (foam-backed vinyl) |
$13,022 |
79% |
It’s also clear that we’re thinking more modestly about our homes and looking for home improvement projects to return other benefits – so the return on siding and window replacement, while declining, have held more steady than have bath or kitchen remodeling.
Bathroom remodeling – whether mid-range or upscale – have lost between 17% and 20% of the return from just 4 years ago. However, decks, window and siding replacement have retained much more of their resale value since real estate peaks in 2005 than have other improvement activities.
When you’re thinking of remodeling it’s important to understand how much value your investment is likely to return – but few of us make our decisions based solely on return on investment. Moreover, the numbers here are New England averages. It does not speak to your specific circumstance. With our assistance, we can certainly help design & plan a remodel you wish to have done to give you the greatest return.
What are you thinking of doing? Let’s talk.
Methodology
Cost data are generated by HomeTech Information Systems, which updates its database of construction costs quarterly, using construction commodity data, as well as labor cost information from a nationwide network of remodeling contractors. The company prepares a detailed construction estimate for each project, then adjusts this baseline cost for each city to account for regional pricing variations. Construction cost figures include labor, material, and subtrade expenses, plus industry-standard overhead and profit. However, project costs are based on estimates for hypothetical projects, with no reliable way to accommodate short-term fluctuations in supply and demand.
Resale value data for each project are aggregated from estimates provided by members of the National Association of Realtors. E-mail surveys containing project descriptions and three-dimensional illustrations, plus construction costs and median home price data for each city were sent to some 150,000 appraisers, sales agents, and brokers. More than 4,000 survey respondents used this information to estimate the value that each remodeling project would add to the house at resale in the current market. Respondents were instructed not to make judgments about the motivation of the homeowner in either the decision to undertake the remodeling project or to sell the house. The most recent survey was in the field for approximately eight weeks in July and August of 2009.
Find full 2009 report here.