Remodeling Magazine’s Cost vs. Value Report for 2014: An Overview
Each year, Remodeling Magazine publishes a report comparing the average cost of 35 popular projects with the value that those projects yield at resale. For example, the average job cost of a midrange “major kitchen remodel” in the Charlottesville, Virginia, area in 2014 is $59,909, according to the most recent data compiled by Remodeling Magazine. Upon sale of the home, it estimated that such a project will increase the selling price by an average of $40,732, resulting in a 74.2 percent cost recoupment. In other words, nearly three-quarters of the money you spend today on a major kitchen remodeling project will find its way back into your pocket should you decide to sell your home in the near future.
As you might expect, not all home remodeling projects are able to generate the same return on investment. The biggest ROI in 2014 is provided by the installation of a steel replacement entry door, which results in a 101 percent cost recoupment, on average in the South Atlantic region. The lowest ROI for any of the 35 home remodeling projects studied in the South Atlantic region is 50 percent for a midrange home office remodel.
2014 is the second consecutive years in which the cost/value ratio for all 35 home remodeling projects rose, suggesting that making improvements to your home is a better investment now than what it was just a few years ago. The average cost/value ratio in 2014 for all projects stands at 66.1 percent, a 5.5 percentage point increase from 2013 and the biggest jump since 2005. It is also worthwhile to note that for the first time in four years, rising home values had more of an effect on the cost/value ratio than rising construction costs.