When weighing the decision to remodel your bathroom or kitchen, it helps to know what your return on investment might be. Bathrooms and kitchens are still high on the list according to the annual Cost Vs. Value report in Hanley Wood’s January issue of Remodeling Magazine.
The report is broken down by region of the country, average project cost, and return on investment recouped at sale of the home. While we always think the best reason to remodel your space is so that you can enjoy it, we do think this year’s numbers show some interesting upticks in the market.
For instance, in the category of bathroom remodel between $5000 and $25,000, the average renovation in the South Atlantic region costs $16,534. Of that, $11,639 is recouped at sale of the home, showing a strong 70.4% return.
A minor kitchen remodel costing between $5000 and $25,000 recoups a whopping 86% at sale. (The average South Atlantic cost is $18,907, with $16,425 recouped in value at sale.)
For a bathroom addition or higher-end bathroom remodel in the $25-100,000 range, the average cost runs around $46,000 with $28,000 (or 60%) recouped at sale of the home. For a major kitchen remodel costing between $25-100,000, the average cost is $56,901 with $36,438 recouped at sale (64%).
As you think about updating your tile or hiring a remodeling contractor, the trends in this report are a good indicator of the long-term value of your investment. The report also gives you a good idea of the average cost of a project in our area of the country. As Remodeling Magazine says, it helps potential clients see the reality of pricing from local professionals rather than “the oft exaggerated world of TV repair shows.”
[Just FYI – many of those shows get to their total project cost numbers by convincing local home improvement professionals to deeply discount or contribute their services and materials in exchange for the advertising benefit of a few seconds of national TV exposure.]
Data for the Hanley Wood report was collected from professional remodelers and builders and encompasses all project costs (permits, sweat equity, etc. that might be excluded from other reports that roll-in DIY numbers).