AND THE SURVEY SAYS….
The National Association of Realtors 2019 Remodeling Impact Report analyzed the $400 Billion Americans spend annually on remodeling projects. (1)
74% of Homeowners reported having greater desire to remain in their homes after remodeling. Sixty-five percent reported having increased enjoyment in their homes, and 77% noted major sense of accomplishment.
One-third of Owners reported most important result is better livability and functionality and 21% declared durable and long-lasting result, materials, and appliances. 10% ranked beauty and aesthetics.
REALTORS® were asked to rank interior projects in terms of their appeal to buyers. Complete kitchen renovation, kitchen upgrade, HVAC replacement, new wood flooring, and updated Master’s Retreat topped the list. REALTORS® also ranked projects in terms of the expected value at resale, without regard to price with the same list of benefits. These rankings closely matched responses from homeowners themselves.
REALTORS® also provided an estimate of the likely dollar value each project would add to the house at resale. In comparing that dollar value to the estimated cost of each project provided by NARI members, a Recovered Project Cost percentage was calculated. For interior projects, the highest percentage cost recovered was from new wood flooring at 106 percent, hardwood flooring refinishes at 100 percent, HVAC replacement at 85 percent, and insulation upgrade at 84 percent.
NAR calculated a 10-point Joy Score for each project based on the happiness homeowners reported with their renovations:
Kitchen Upgrade- 9.7
- Homeowners’ top two reasons to do: Upgrade worn out surfaces and time for a change
Complete Kitchen Remodel- 10.0
- Homeowners’ top two reasons to do: Replace worn out surfaces, finishes, materials and just moved into the home and wanted their own customizations
New Master Suite and Bath- 8.4
- Homeowners’ top two reasons to do: Add features and upgrade finishes and materials
Bathroom Renovation- 9.3
- Homeowners’ top two reasons to do: Update worn out surfaces, finishes, materials and time for a change.
Add a Bathroom- 9.2
- Homeowners’ top reason to do: Improve livability.
(1) Source: National Association of Realtors Research Group, NARI, NAR, and La Jeunesse, Elizabeth. “Healthy Home Remodeling: Consumer Trends and Contractor Preparedness.” Harvard’s Joint Center for Housing Studies, January 31, 2019.
https://www.jchs.harvard.edu/sites/default/files/JCHS_La_Jeunesse_Healthy_Homes_Brief.pdf Harvard’s Joint Center for Housing Studies analysis of US Department of Housing and Urban Development (HUD), American Housing Survey; US Department of Commerce, Retail Sales of Building Materials and Survey of Expenditures for Residential Improvement and Repairs (C-50); and Harvard’s Joint Center for Housing Studies Research Notes, October 2010 and April 2016.