It is no secret that Americans have been spending considerably more time at home during the past 14 months. This has led to many homeowners opting to embark on home remodeling projects. Recently, Remodeling Magazine published their “Cost vs Value” report for 2021. Interestingly, 11 of the top 12 projects that garner the most return on investment (ROI) are exterior projects. The one outlier in the top 12 list was the minor kitchen remodel which was ranked #3 and had a 72% of the cost for such a job recovered.
Rising material costs impacting ROI
According to this report, material costs have risen across the board since 2014. However, the past year has seen stark price increases that negatively impacted ROI by an average of -3%. In addition to global trading tariffs, the pandemic caused significant supply-chain disruptions. These disruptions are still being seen today and thus directly impacting the overall ROI of home improvement projects.
Cost vs. value results
Summary
As a homeowner, it is always important to analyze ROI for various home improvement projects. This is particularly important if you plan on selling your home in the near future. In addition, it is equally important to have a realistic expectation with any home improvement project when it comes time to sell. As shown by this report, it is extremely unlikely to recover every dollar spent on a home improvement project. If ROI is your primary concern when initiating home remodeling projects, the list above may be able to point you in the right direction.
In closing, every market is different. For example, high-impact windows are very desirable in the South Florida market. This may not necessarily be the case in other states. As a whole, hurricane protection for a home will be a critical factor when selling a property in South Florida.
Do you have questions about the South Florida market? We can help. At Live South Florida Realty, Inc. our listings continue to sell faster and at premium prices due to our sophisticated and thorough marketing plans. Contact us today when you are ready to buy or sell.
