Home renovations can increase or decrease a home’s value, and to gain an idea of what renovations will do for your home’s worth, it is vital to understand the local housing market. Going overboard on renovations by improving above what is appropriate for the surrounding homes and area can cost you.
Remodels and improvements can boost a home’s return on investment (ROI). Some of the upgrades that generate the greatest ROIs and cost recoup include projects that increase efficiency and lower bills, like window replacement; those that provide more liveable square footage for relaxation, like deck additions; and those that increase one of the home seller’s greatest tools—curb appeal, such as front entry door replacement.
With an increase in home prices in many areas of the country during the pandemic, many homeowners have listed their homes. They are also enlisting the help of professionals to complete home renovations that will help increase their home’s value and get their homes sold.
To help homeowners get an idea of what home renovation projects will be the most valuable, Extra Space Storage analyzed data from Zonda Media’s 2021 Remodeling Cost vs. Value Report to determine the 10 home renovation projects with the highest percentage of their job costs recouped, or the highest return on investment.
To determine the 2021 results, the report used data from 2017–19 on common projects done by about 200,000 home renovation professionals and that can be priced accurately, which is why products with specific styles or finishes, or projects whose price is determined by specific region or climate, are not included. The analysis applies a statistical model to the older data that’s based on recent construction cost estimates and economic indicators—such as income, employment, and market housing—to create the best 2021 estimate of a renovation project cost and its resale value.