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February 1, 2023

Home Improvements & Their Return on Investment

There are a ton of good reasons to make home improvements, even in our current economy. You may want to boost your home’s future sales value, add livable space, or refresh an aging room. Or you may just want to enjoy your home more, especially if you wanted to move but the market didn’t cooperate. And it’s clear that during the pandemic, many of these improvements were designed to make the place where we spend the most time more desirable. 

The National Association of REALTORS®, along with the National Association of the Remodeling Industry, conducted a survey in 2022 to find out the project’s estimated average cost and return on investment, and the joy score, or satisfaction with the completed upgrade on a scale of 1 to 10. 

Look at the results of this research to see what might fit your budget and needs.

Turning an Attic into a living area. Average cost: $100,000. Return on Investment: $75,000 (75% return). Joy score: 10/10.

Adding a new Bedroom Suite. Average cost: $172,500. Return on Investment: $100,000 (56% return). Joy score: 9.5/10.

Completing Bathroom renovation. Average cost: $35,000. Return on Investment: $25,000 (71% return). Joy score: 9.6/10

Installing hardwood floors in Living Room. Average cost: $5,500. Return on Investment: $6,500 (118% return). Joy score: 10/10.

Kitchen upgrade. Average cost: $45,000. Return on Investment: $30,000 (67% return). Joy score: 9.8/10. 

Turning a basement into a living area. Average cost: $57,500. Return on Investment: $49,350 (86% return). Joy score: 9.7/10.

Just like the housing market changes, homebuyers’ preferences can also change very quickly. Adjusting and adapting to market conditions is crucial. That’s why it’s so important to utilize the expertise of a REALTOR® when entering the housing market. Whether you’re looking to buy or sell, a REALTOR will be on your side, making sure that your best interests are considered. REALTORS work for their clients every day. That’s Who We R®.