More homeowners are choosing to invest in remodeling to upgrade their experience rather than move due to high mortgage rates and limited housing inventory. In fact, home remodeling projects in the U.S. are projected to rise by 222,400 in 2025—a 5% increase over the previous year. The 37th annual Cost vs Value Report of 2024 is a robust national survey of the average cost of twenty three home remodeling projects as reported by Contractors, and their current rate of return as reported by Realtors. It seeks to answer, What value does a particular remodeling project add to the sale price of the home? The national average rate of return on home improvements was 75%. The greatest return were from projects that improve curb appeal. However, most remodeling projects have a goal to customize a home to meet the lifestyle needs and personal tastes of the homeowner.
The top three rate of return projects are typically done to help ready a home for sale: replacing the entry door with a steel door (204% ROI), replacing the garage door (179% ROI), and adding manufactured stone veneer (98% ROI). However, top Realtors report that more buyers are not willing to live with a home layout that doesn’t flow, nor accept a smaller kitchen that lacks an island, or bathrooms that don’t provide a luxurious spa-like feel. Buyers want a move-in ready home. Also increasing in popularity are home modifications to facilitate aging in place. These are the Phoenix average rates of return* based on five popular home remodeling project types:
Project Type – Avg Job Cost – Cost Recouped
Midrange/Upscale Bathroom Remodel – 22,975/ 73,176 – 82.6%/ 48%
Bath Remodel, Universal Design – 37,823- 46.9%
Bathroom Addition Midrange/Upscale – 53,971/ 101,866 – 38.7%/ 32.5%
Primary Suite Addition Midrange/Upscale – 153,491/ 318,12 – 34.9%/ 21.9%
These are the differences in the scopes of work between the smaller and larger kitchen remodeling and bathroom remodeling projects. A minor kitchen remodel put in new cabinet fronts, countertop, sink and faucet, new range, refrigerator and flooring. A major kitchen remodel also included a functional redesign with an island, semi-custom cabinets, stainless steel sink, dishwasher, and custom lighting. The midrange bath remodel replaced all fixtures, a new porcelain-on-steel tub with ceramic tile surround and flooring, solid surface counter with one integral sink, and recessed medicine cabinet with light. The upscale bathroom remodel captured adjacent 100 sf, relocated all fixtures, had a tiled shower with frameless glass enclosure, freestanding soaker tub, high end faucets, stone countertop, 2 sinks and mirrored medicine cabinets with lighting, enclosed room for toilet, custom cabinetry, and in-floor heating.
A thoughtfully designed and expertly executed remodel doesn’t just add comfort—it also boosts equity. Even a decade later, these improvements can significantly raise your home’s resale value. But perhaps the best part? While you’re enjoying the elevated experience and benefits of a more beautiful, functional space every day, consider a future buyer may be helping to cover the cost! It’s a smart investment that pays off now—and later.
Happy Home Remodeling!
*©2024 Zonda Media, a Delaware corporation. Complete data from the 2024 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.
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