This year will be a banner year for home improvements, according to Harvard University’s Joint Center for Housing Studies, which estimates homeowner spending on improvements and repairs could climb to $430 billion.
But with supply chain issues and labor shortages driving up costs, it’s smart to know which projects stand a better chance of giving you a return on your investment (ROI). Here are recommendations based on ROI from a consensus of cost vs. value reports.
- Replacing the Garage Door – It can make a startling improvement to the look of your home, and the average garage door replacement costing just over $3,900 will maintain a resale value of more than $3,660.
- Adding Exterior Stone Veneer – It may cost as much as $10,000 to replace existing siding with a stone veneer on the bottom third of your home. But doing so can make a meaningful difference, typically recouping more than 92% of its cost at resale.
- Remodeling the Kitchen – If you’re thinking of enhancing the space, you should know that even a minor kitchen remodel, at an average cost of around $26,000, typically recoups more than 72% of that when it’s time to sell.
- Installing New Windows – They will make a difference on your utility bills now, and when you’re ready to sell, those new vinyl windows costing an average of $18-20,000 will net a resale value of $13,297.
- Adding a Deck – It seems like everyone who didn’t have a deck wanted to add one during the pandemic. But they aren’t just a shelter-in-place hot trend. At an average investment of $16,766, you can expect to recoup more than 65% at sale time.
- Putting in a Steel Door – Not all home improvements are expensive. A new steel front door typically runs just over $2,000, and it maintains a good chunk of that value—as much as 65% or about $1,350.