Cabin fever in 2020 has paid off for homeowners who renovated their apartment during the lockdown.
The National Association of Realtors has released its 2022 Remodeling Impact Report, which breaks down data on who remodeled what and for how much. The survey results measured how satisfied consumers were with the projects, the cost of the projects and the resale value.
A Harvard University study estimates that Americans spent $420 billion remodeling their homes in 2020.
In the remodeling report, the National Association of the Remodeling Industry estimated the dollar value each project would add to the home when resold. Comparing this dollar value to the estimated cost of each project provided by NARI members, a percentage of the project cost recovered was calculated.
Here are the three interior remodeling projects that got the most bang for the buck:
Hardwood floors took the top two spots for cost recovery.
It was estimated that homeowners renovating existing hardwood floors earned a resale value of $5,000, giving the project a 147% value recovery. Survey results among real estate agents revealed that 22% recommend investing in this renovation before selling.
Adding new parquet floors has also paid off. The resale value on new floors was $6,500 or 118% of the project cost.
According to a 2021 report by the National Association of Home Builders, hardwood floors were among the top 10 features homebuyers are looking for.
Going green turned out to be a long-term investment for the remodelers. Consumers who upgraded their insulation recovered 100% of their cost, estimated at around $2,500.
Energy efficiency was the main reason why consumers chose the project.
Surprisingly, insulation was among the categories that received a “joy score” of 10, meaning homeowners were either happy or satisfied with their project. While other top scorers like closet renovations or loft conversions seemed more exciting, improving insulation filled homeowners with pride. Of the homeowners who took on the project, 69% said they felt a great sense of accomplishment.
Remodel rooms to create living space
According to the report, adding another living room by remodeling basement rooms added the value of functionality.
Respondents to the survey indicated that they were renovating their basement to increase and improve the quality of living, and simply put, “It was time for a change.”
This project was very popular as homeowners were spending more time in their home than ever before. Among NARI members in the remodeling industry, 17% reported increasing demand for this project.
This was a more expensive project than others, but is estimated to have recouped 87% or $49,250 of the cost.
Projects that freed up more space were popular and ended up high on the Joy Score list. Both the extension of a study and the conversion of an attic received perfect 10s. According to NARI, Home Office saw a 40% surge in demand during the pandemic.
Converting an attic into living space was one of the most expensive projects listed, but the value regained still landed at 75%.
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