Remodeling Magazine, a trade publication for remodelers and home improvement professionals, publishes an annual report that includes regional data on remodeling cost vs. value. This information, which can be filtered to cover data from a single city, a region, or the entire United States, is critical for contractors and homeowners alike. If you plan on starting a home improvement project this year, consider its potential ROI.
What is a Project’s ROI?
ROI is short for “return on investment.” In the context of home improvement, ROI refers to the percentage of the project’s cost that is recouped in the increased value of the home. For example, according to Remodeling Magazine’s 2020 Cost vs. Value Report, the nationwide average ROI for a major upscale kitchen remodel was 53.9 percent. This is a relatively low ROI. The project’s average cost was $135,547, but the average value added was only $72,993.
Home Improvement Projects With High Returns
According to this year’s report, the home improvement project with the highest ROI involved replacing vinyl siding with manufactured stone veneer. This project had an average ROI of 95.6 percent. Garage door replacement, a close second, had an average ROI of 94.5 percent. In contrast to the low ROI of a major upscale kitchen remodel, a minor midrange kitchen remodel had an average ROI of 77.6 percent.
Projects That Yield a Low ROI
Unfortunately, some popular home improvement projects simply do not provide a high return. An upscale master suite addition has an average ROI of just 51.6 percent, the lowest ROI in this year’s report. Other projects, such as a major kitchen remodel, a bathroom addition, and an upscale bath remodel, each sat below a 60 percent ROI despite the projects’ popularity.
Does ROI Matter?
While ROI is important, it does not have to be the deciding factor for your next home improvement project. For homeowners who do not plan to sell anytime soon, a project’s ROI does not have to be a significant consideration. Homeowners who intend to stay in their current home for more than a few years may place more importance on what renovations they want or need rather than the wants of potential homebuyers. If you are researching home improvement projects for your property, the team at Your Project Loan can help. Contact us today to learn more about financing options.
Your Project Loan Can Help
When you decide you’re ready to get to work, don’t let financing hold you back. We offer a vast array of loan services, just for you. You’ll never need to worry about paying too much out of pocket for your home improvement projects, and you can start working on your home improvements immediately. We also are partnered with the best dealers in the area, so you’ll be supported throughout your entire project.
We know that home improvement projects like these are urgent matters. This is why we offer a nearly instant loan decision once you fill out our 60-second loan inquiry! We conduct business in all 50 states* and our rates start as low as 4.5%* and terms go up to 15 years! HFS Financial can help you find financing up to $200k* for your project! What are you waiting for? See your options today!