More and more, homeowners are choosing to stay put and renovate rather than buy new. Before you get started on an update to your home, take a look at the projects that may net a higher return on investment and those that remain popular no matter the ROI.
High-Value Home Projects
- Exterior: According to the 2017 Cost vs. Value Report from Remodeling Magazine, an indoor renovation in 2016 averaged a 63.5 percent return, while curb appeal projects paid back an average of 74.9 percent. To take advantage of this higher ROI, look into outdoor improvements like swapping out your front door for a steel one or updating your home’s siding.
- Insulation: Improving the efficiency of the attic with air sealing and fiberglass insulation continues to sit at the top of the high-value list, boasting an impressive 107.7 percent ROI.
- Master suite: As push notifications and email updates blur the line between work and home, there’s a growing emphasis on creating serene, peaceful spaces. A master bedroom addition complete with a walk-in closet and spacious, well-appointed bathroom can bring comfort along with a respectable 64.8 percent return.
Popular Despite a Lower ROI
Would you like to make a few changes regardless of the return? You’re not alone. Homeowners continue to invest in kitchen and bathroom projects even when the ROI is low. But keep this in mind: Overall, replacement projects pull in a larger return (74 percent) than remodeling jobs (63.7 percent). The latter, however, often focus on personalizing the space, which may explain the popularity.
Looking to ride out rising mortgage rates by staying in your current place? Industry insiders predict that will be common, with many homeowners looking to renovation to spice things up.