Janet Cook
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 23 home remodeling projects, as reported by contractors, and their current rate of return (ROI), 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 returns 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:
Minor/Major Kitchen Remodel: Avg. Job Cost: $26,672/$76,798, Cost Recouped: 96.2%/51.9%
Minor/Upscale Bathroom Remodel: Avg. Job Cost: $22,975/$73,176, Cost Recouped: 82.6%/48%
Bath Remodel, Universal Design: Avg. Job Cost: $37,823, Cost Recouped: 46.9%
Bathroom Addition Midrange/Upscale: Avg. Job Cost: $53,971/$101,866, Cost Recouped: 38.7%/32.5%
Primary Suite Addition Midrange/Upscale: Avg. Job Cost: $153,491/$318,125, Cost Recouped: 34.9%/21.9%
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 that 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.
Janet Cook, Certified Health Coach and Aging in Place Specialist, President of Cook Remodeling (celebrating 46 years), invites you to check out their blog for inspiring photos and more articles.