Home Improvement Trends and Return on Investment
As the new year approaches, we will begin to see news about home improvement trends for the year ahead. Let’s explore the trends relative to the best return on investment (ROI) for a home renovation.
Curb appeal improvements traditionally have the highest return on your investment. Specifically, the best projects to consider are HVAC conversions and modifications, garage door replacements, manufactured door veneer, and entry doors (especially steel.)Siding including vinyl and fiber-cement. Fortunately, these investments will always be on trend and deliver 100% return on investment.
HGTV tends to showcase a high-end kitchen renovation. A significant kitchen upgrade undoubtedly has dramatic appeal. However, a moderate kitchen upgrade will have a better ROI. If you are determined to do a kitchen update, consider this a mid-range update that will give a homeowner an 85% ROI. Painting cabinets, updating backsplashes, and installing quartz countertops are good ideas. Additionally, upgrading appliances with smart technology and more energy-efficient features is a sound strategy. Updated lighting fixtures and open shelves would be lower on the ROI but, understandably, are trending.
With bathrooms, the keyword “spa-like” is driving the inspiration here—walk-in showers with rain showerheads, free-standing tubs, heated floors, and smart mirrors. However, sticking to updating tiles, countertops, and fixtures will provide the highest ROI.
Outdoor Living Spaces
We will continue to see the desire to create retreat-like environments outside the home with outdoor kitchens, fire pits, and decks. A new deck will have the highest ROI of all these improvements.
Home Office Conversions
With the rise of remote work, converting unused space into a more functional space like an office is highly desirable. Room conversions typically don’t make the ROI list. While we can’t back this up with an ROI statistic, anecdotal improvement in convenience and productivity can be worth it for the remote worker.
Energy-efficient renovations are not only environmentally friendly but also financially rewarding. Homeowners can invest in energy-efficient windows, insulation, HVAC systems (as mentioned under exterior improvements earlier), and solar panels to reduce utility bills will increase the resale value of their homes. The ROI ranges from 60% to 100%, from windows to HVAC updates.
Always Consult with The Experts
These ROI numbers reflect the national average. To ensure you get the best return, consulting with a realtor familiar with our neighborhood is a good idea.
Finally, we can help you evaluate financing projects and whether they make sense relative to your financial goals. To discuss your financial situation or for a referral for a realtor, connect with us today. We are happy to help!