The Cost Vs. Value Report
 What's the payback for remodeling? Our annual report
compares construction cost with resale value in 60 markets.
Source: REMODELING Magazine
Publication date: 2007-11-01
The 19th annual Cost vs. Value Report shows that prices continue to
climb for most remodeling projects at the same time the value of
improvements at resale returns to 2002 levels. None of this should
come as much of a surprise to industry professionals, who have been
riding the crest of the remodeling boom for several years, and this
year's data confirm the housing slowdown many parts of the country
are experiencing. Should you be worried? That depends on how fast
and how far the housing market falls, but remember that both new
construction and remodeling activity have been at record levels in
recent years. Some adjustment is inevitable, but indications are
that the current downturn represents a return to "normal" levels and
that the prospects for remodeling remain bright.
A number of improvements designed to make the report more reliable
and more useful has also affected both cost and value data. For
starters, we took a fresh look at the specs for all 25 projects. The
result is cost-to-construct figures (which include labor, material,
subtrades, and gross profit) that are not only higher than in
previous years but also, we believe, considerably more accurate.
Estimates of resale value are also more accurate than ever before,
thanks to a record 2,188 members of the National Association of
Realtors who completed our e-mail survey. Finally, we have
introduced nine regional averages following the divisions
established by the U.S. Census Bureau. We believe this data provides
more useful points of comparison than the four larger regions used
in previous years.
|
2006 National Averages |
Region - Middle Atlantic | |
Project |
Job Cost |
Resale Value |
% Cost Recouped |
Job Cost |
Resale Value |
% Cost Recouped | |
Mid-Range | | | | Attic Bedroom Remodel | $44,073 | $35,228 | 79.9% | $47,494 | $34,517 | 72.7% | | Basement Remodel | $56,724 | $44,685 | 78.8% | $60,879 | $44,788 | 73.6% | | Bathroom Addition | $28,918 | $21,670 | 74.9% | $31,038 | $22,051 | 71.0% | | Bathroom Remodel | $12,918 | $10,970 | 84.9% | $13,843 | $11,163 | 80.6% | | Deck Addition | $14,728 | $11,307 | 76.8% | $15,033 | $11,817 | 78.6% | | Family Room Addition | $74,890 | $53,519 | 71.5% | $78,689 | $55,995 | 71.2% | | Home Office Remodel | $20,057 | $12,707 | 63.4% | $20,902 | $13,312 | 63.7% | | Major Kitchen Remodel | $54,241 | $43,603 | 80.4% | $56,298 | $44,766 | 79.5% | | Master Suite Addition | $94,331 | $68,458 | 72.6% | $99,944 | $70,935 | 71.0% | | Minor Kitchen Remodel | $17,928 | $15,278 | 85.2% | $18,541 | $15,323 | 82.6% | | Roofing Replacement | $14,276 | $10,553 | 73.9% | $16,056 | $11,536 | 71.9% | | Siding Replacement (vinyl) | $9,134 | $7,963 | 87.2% | $9,483 | $8,748 | 92.3% | | Sunroom Addition | $49,551 | $32,854 | 66.3% | $51,517 | $33,825 | 65.7% | | Two-Story Addition | $105,297 | $87,654 | 83.2% | $110,955 | $88,617 | 79.9% | | Window Replacement (wood) | $11,040 | $9,416 | 85.3% | $11,610 | $10,095 | 87.0% | | Window Replacement (vinyl) | $10,160 | $8,500 | 83.7% | $10,682 | $9,523 | 89.2% | |
Upscale | | | | Bathroom Addition | $60,535 | $44,041 | 72.8% | $63,628 | $44,877 | 70.5% | | Bathroom Remodel | $38,165 | $29,529 | 77.4% | $40,305 | $29,681 | 73.6% | | Major Kitchen Remodel | $107,973 | $81,896 | 75.9% | $110,928 | $80,538 | 72.6% | | Master Suite Addition | $176,268 | $128,096 | 72.7% | $183,489 | $123,712 | 67.4% | | Roofing Replacement | $24,693 | $18,012 | 72.9% | $27,819 | $19,848 | 71.4% | | Siding Replacement (fiber cement) | $13,149 | $11,573 | 88.0% | $13,280 | $11,751 | 88.5% | | Siding Replacement (foam-backed vinyl) | $11,139 | $9,258 | 83.1% | $11,485 | $9,946 | 86.6% | | Window Replacement (wood) | $16,910 | $13,952 | 82.5% | $17,607 | $14,879 | 84.5% | | Window Replacement (vinyl) | $13,120 | $11,109 | 84.7% | $13,870 | $12,132 | 87.5% |
If you are looking for
a Westchester remodeling contractor who can show you how to increase
the value of your home, please call us
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