By the Numbers: 2008 Cost vs. Value Report results a (bad) sign of the times
27 out of 30
Number of projects in Remodeling magazine's 2008 Cost vs. Value Report whose recouped cost, based on nationwide averages, was lower than it was in 2007.
Once upon a time, the stellar statistics in the annual Cost vs. Value Report were a sign of a hot housing market. "Keeping up with the Joneses can be a savvy investment move," noted a summary of the 2005 report, a time when the return for some improvements exceeded 100 percent. (The report shows the return on investment for midlevel and upscale remodeling projects using construction costs and estimates of how much the projects would add to houses at resale.)
Times have changed. For 2008, just three of 30 projects were up from 2007: replacing siding with foam-backed vinyl, remodeling a bathroom, and adding a composite deck. For every other project, says the report, homeowners would recoup less than they would have a year ago. What's more, returns across the board are well below 2005 marks. For example, a minor kitchen remodel in 2005 had a return of 98.5 percent; today, it's 79.5 percent.
The 2008 report reinforces the notion that you don't remodel to make money. "Remodeling was never an investment, and it more obviously isn't now," said contractor and author Fernando Pagés Ruiz in our 10 Questions for interview with him last November. "The motivation for remodeling should simply be that you plan to live in the house and you're spending money to make it how you want it." Words to remodel by, now more than ever.—Daniel DiClerico
Essential information: To get the most out of your remodel, use our interactive Home Improvement Guide for a room-by-room look at the most cost-effective appliances and materials.
March 15 2009 01:27 pm | External Blogs
Leave a Reply
You must be logged in to post a comment.