The National Association of REALTORS® (NAR) recently released a study they completed with the National Association of the Remodeling Industry (NARI) on the top home improvement projects for return on investment. NARI estimated the typical cost of each project and NAR contributed costs that Realtors have seen recovered when the home is sold. They studied 19 of the most popular projects, and these are top ones:
Interior Projects
1. Hardwood Flooring Refinishing
Investment: $3,400
Recovered: $5,000
Return on Investment: 147%
2. New Wood Flooring
Investment: $5,500
Recovered: $6,500
Return on Investment: 118%
Dog on Wood Floor – Photo by Karolina Grabowska from Pexels
3. Insulation Upgrade
Investment: $2,500
Recovered: $2,500
Return on Investment: 100%
4. Basement Conversion
Investment: $57,500
Recovered: $49,250
Return on Investment: 86%
5. Closet Renovation
Investment: $6,000
Recovered: $5,000
Return on Investment: 83%
6. Attic Conversion
Investment: $100,000
Recovered: $75,000
Return on Investment: 75%
7. Complete Kitchen Renovation
Investment: $80,000
Recovered: $60,000
Return on Investment: 75%
Kitchen – pexels-mark-mccammon-1080721
8. Bathroom Renovation
Investment: $35,000
Recovered: $25,000
Return on Investment: 71%
9. Kitchen Upgrade
Investment: $45,000
Recovered: $30,000
Return on Investment: 67%
10. Add New Bathroom
Investment: $80,000
Recovered: $50,000
Return on Investment: 63%
Bathroom – Photo by Christa Grover from Pexels
Exterior
1. New Roofing
Investment: $12,000
Recovered: $12,000
Return on Investment: 100%
2. New Garage Door
Investment: $2,000
Recovered: $2,000
Return on Investment: 100%
Garage Doors – Photo by Luis Yanez from Pexels
3. New Siding (Vinyl and Fiber Cement)
Investment: $18,300 – $18,600
Recovered: $15,000 – $16,000
Return on Investment: 82% – 86%
4. New Window (Vinyl and Wood)
Investment: $30,000 – $48,000
Recovered: $20,000 – $30,000
Return on Investment: 63% – 67%
5. New Front Door (Steel and Fiberglass)
Investment: $3,150 – $3,500
Recovered: $2,000 – $2,100
Return on Investment: 60% – 63%
Front Door – Photo by Dmitry Zvolskiy from Pexels
Each project was also given a Joy Score from 1 to 10. This number isn’t based on a monetary value but how happy consumers felt after the project was completed. Some of these Joy Scores aligned with the rankings for return on investment, while other projects that didn’t even rank in the top 10 popped up at the top. These were mostly to improve the livability or functionality of the home, like adding a home office. If you are interested in seeing the Joy Score results, you can view the report here.
It’s also important to note that the return on investment for any home improvement project can increase or decrease, depending on the condition of the property and its location. If you would like insight into what we are seeing in our local market, we would be happy to chat about your current project and how other homes that have currently sold compare. Just give us a call or send us a message and let us know what you’re up to.
