This Year's Top-Ranked Projects Saw a Significant Jump in Return on Investment Values
NEWPORT BEACH, Calif., April 23, 2024 /PRNewswire-PRWeb/ -- Zonda has published the highly anticipated 37th annual Cost vs. Value (CVV) report detailing the most common home renovation projects across the nation ranked by return on investment (ROI) values. This year's report upholds a multiyear trend establishing exterior home improvement projects as more valuable than larger interior projects. This year's top three projects, which have been consistently ranked among the highest valued projects in years past, have remarkably high return values - with garage door replacement at 194% ROI, steel door replacement at 188%, and manufactured stone veneer at 153%.
"When it comes to adding resale value to a home, exterior replacement projects continue to make the most sense," said Clay DeKorne, chief editor of Zonda's JLC Group. "Discretionary projects like an upscale bathroom or kitchen remodel will feel valuable to those who make the selections but won't provide nearly as much return to sellers."
This year's report shows a significant surge in project values compared to last year. The top two projects—garage door and steel door replacements—have doubled in value since last year. These returns are the highest found in the history of the Cost vs. Value report, a result due to the unique nature of today's housing market combined with higher mortgage rates, and high equity for current homeowners.
"This shift in CVV between categories is fascinating," said Todd Tomalak, principal of Zonda's Building Products Advisory. "It mirrors a broader underlying disconnect we are seeing between remodel segments in 2024, driven in part by differences in homebuyer activity."
However, not all projects have gained value. Last year's number one project, the HVAC conversion, held 104% ROI, but is now ranked number 12, with just 66% ROI, likely driven by consumers now observing large declines in natural gas heating costs vs. prior years.
The Cost vs. Value Report seeks to answer the question, "What value does a particular remodeling project add to the sale price of a home?" This year's results were determined in part through data collected from surveys of real estate professionals along with data delivered via Zonda's collaboration with Verisk's remodeling estimating solution, XactRemodel®. The solution is powered by precise, local pricing data that is researched and vetted by Verisk's pricing data team. The collaboration allows remodelers, homeowners, and real estate investors to quickly look up the average cost of 23 remodeling projects versus how much value those projects retain at resale. The data is available for 162 local U.S. markets.
Top Ten Cost vs. Value: National Averages
- Garage Door Replacement | Cost $4,513 | Value at sale $8,751 | 194% ROI
- Steel Door Replacement | Cost $2,355 | Value at sale $4,430 | 188% ROI
- Manufactured Stone Veneer | Cost $11,287 | Value at sale $17,291 | 153% ROI
- Grand Entrance Upscale - Fiberglass | Cost $11,353 | Value at sale $11,054 | 97% ROI
- Minor Kitchen Remodel | Cost $27,492 | Value at sale $26,406 | 96% ROI
- Siding Replacement - Fiberglass | Cost $20,619 | Value at sale $18,230 | 88% ROI
- Deck Addition - Wood | Cost $17,615 | Value at sale $14,596 | 83% ROI
- Siding Replacement - Vinyl | Cost $17,410 | Value at sale $13,957 | 80% ROI
- Bathroom Remodel Mid-Range | Cost $25,251 | Value at sale $18,613 | 74% ROI
- Deck Addition - Composite | Cost $24,206 | Value at sale $16,498 | 68% ROI
To read the entire report, see the geographic cost vs. value averages, and get more information on the survey results, visit http://www.costvsvalue.com.
About Zonda
Zonda provides data-driven housing market solutions to the homebuilding industry. From builders to building product manufacturers, mortgage clients, and multifamily executives, we work hand-in-hand with our customers to streamline access to housing data to empower smarter decisions. As a leading brand in residential construction, our mission is to advance the home building industry, because we believe better homes mean better lives and stronger communities. Together, we are building the future of housing.
Media Contact
Valerie Sheets, Zonda, 949-294-9557, [email protected], https://zondahome.com
SOURCE Zonda
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