In Charlottesville, VA, Not All Home Additions Offer the Same Return on Investment
Remodeling Magazine publishes an annual report containing return on investment (ROI) data for a wide range of home additions. Tilted the Cost vs. Value Report, the aim of this yearly compilation is to provide homeowners hard figures on which to base their remodeling decisions. As might be expected, ROI varies considerably from one home improvement project to the next, and it is not necessarily true that big-ticket home additions always yield a better financial return than smaller, simpler projects.
The Cost vs. Value Report compares the average cost of 35 different home remodeling projects with the value those projects contribute to home resale prices, resulting in a cost-value ratio that expresses the ROI for each project. The higher the ratio, the more money you are going to recoup from your overall project outlay if and when you decide to sell your home. Here, in descending order of ROI, are several popular home additions:
- Second-story addition – 71.8% return on investment, average job cost $155,365
- Garage addition – 69.3% return on investment, average job cost $49,911
- Family room addition – 68.8% return on investment, average job cost $80,765
- Bathroom addition – 60.1% return on investment, average job cost $38,186
- Sunroom addition – 51.7% return on investment, average job cost $73,546
Interestingly, the 2014 Cost vs. Value Report from Remodeling Magazine shows a distinct uptick in the ROI on a wide range of home renovations, including home additions. After a steady decline in ROI starting in 2006, ROI is on the rebound with an average ROI for all projects that stands at 66.1%.