The Cost vs Value of Home Improvements

Each year, Realtor Magazine and Remodeling Magazine produce their annual Cost vs. Value Study.  The study evaluates the return on investment of common home improvement projects.  Just as in past years, the 2008 Study recognizes “curb appeal” improvements as the most valuable improvements one can make.  Curb appeal improvements include new decks, replacement dual pane windows, and new house siding.  The best bang for your buck inside the house is in the kitchen.  Below are the top ten project paybacks:

1. Upscale fiber cement siding (86.7%)

2. Midrange wood deck (81.8%)

3. Midrange vinyl siding (80.7%)

4. Upscale foam-backed vinyl (80.4%)

5. Midrange minor kitchen remodel (79.5%) 

6. Upscale vinyl window replacement (79.2%)

7. Midrange wood window replacement (77.7%)

8. Midrange vinyl window replacement (77.2%)

9. Upscale wood window replacement (76.5%

10. Midrange major kitchen remodel (76.0%)

Another interesting bit of information found in the study is that home improvements are actually holding their value better than home prices overall.  From 2007 to 2008, home prices have fallen an average of 7% nationwide.  The value of home owners’ investment in remodeling projects, however,  has declined only 3.86 percent on average over the same time period.

The full text of the Realtor Magazine article can be found here.