Cost vs. Value of Remodeling: The Best Home Improvement Projects in 2021
Have you recently thought about revamping your home? Maybe you are eager to renovate your old kitchen or itching to remodel your backyard before the summer? With enough funds, you can hire experienced remodelers to turn your creative ideas into reality.
However, it isn’t always a good idea to jump into a home remodeling project headfirst. Or at least before you’ve considered the cost vs. value ratio of your desired remodel.
When choosing a home improvement project, you want to make sure you’ll be able to recoup some of your investment when you sell the property. This is why it’s essential to think about how long you plan to live in your current home before making a remodeling decision.
The Cost vs. Value Report
To help you decide, Remodeling magazine releases a Cost vs. Value Report every year, aiming to highlight the costs of various home improvements and their estimated ROI. Based on the 2021 report, there are several projects that stand out in terms of resale value.
Naturally, you should keep in mind that some things are subjective when it comes to remodeling your home. Not everything can be quantified. Nevertheless, the Cost vs. Value Report strives to take at least some of the subjective factors into consideration and notes that applying regional or national trends in remodeling to the street level can be misleading.
Design Trends Drive Home Improvement ROI
Current trends in home design can greatly affect the estimated ROI on remodeling projects. In 2021, the remodels that are witnessing growing returns mostly include exterior improvements, such as manufactured stone veneer, deck installations, garage door upgrades, or window replacements. On the other hand, the projects that first come to mind of many homeowners, such as bathroom additions, master suite additions, and major kitchen remodels, tend to bring lower returns.
Nevertheless, remodeling projects in Dallas return more than 57% of their cost, on average. In fact, no remodeling investment should be considered â€œbadâ€, especially when other benefits afforded to homeowners are considered, such as the joy of living in a newly renovated home. These benefits can hardly be assessed and quantified in the Cost vs. Value report.
Here are the estimated resale values for home and bathroom remodels in 2021.
Minor mid-range kitchen remodels
Homeowners just love remodeling their kitchens. However, bear in mind that major kitchen remodels may not bring you the best return on your investment. Instead, a minor, mid-range renovation can make a greater difference in terms of resale value. A minor remodel typically costs about $21,700, and brings back about $17,000 in resale value. This amounts to a cost recoup of 78.7%, which is better than the estimated 57.0% of major kitchen remodels.
(68.6% ROI) MIDRANGE | Minor Kitchen Remodel
Average Cost: $24,405
Average Resale Value: $16,739
Major upscale kitchen remodels
A major kitchen remodel in Dallas can be costly, with an average price of $127,684. However, an upscale kitchen makeover brings you about $73,340 in resale value, which amounts to a ROI of 57.4%. Although this is lower than the estimated recouped cost for minor remodels, we believe that the enjoyment of having a brand new kitchen brings you much more than money. Ultimately, the choice should be made depending on how long you plan to stay in your home and how much you’d love to have a cutting edge kitchen.
(47.2% ROI) UPSCALE | Major Kitchen Remodel
Average Cost: $146,210
Average Resale Value: $69,049
Bath remodels: universal design
When it comes to bathroom remodeling, accessibility features, cutting edge heating, humidity-sensing controls, and lighting options have taken the stage in 2021. A bathroom makeover based on the latest trends in comfort and accessibility can recoup about 71.2% of your outlay, with the average cost and resale value being $32,120 and $22,883 respectively.
Bathroom Remodel | UNIVERSAL DESIGN (58.3% ROI)
Average Cost: $36,523
Average Resale Value: $21,280
Bath remodels: mid-range and upscale
As for typical upscale and mid-range bath remodels, the story is a bit different. Both options bring a return lower than 70%, with the mid-range option being slightly higher at 68.5%. Bathroom remodel costs range from about $19,400 to $62,000 for upscale projects, which means that they can get quite costly.
Nevertheless, the various design features present in modern bathrooms can help you recoup more of your initial investment, so make sure to discuss your options with an experienced remodeler.
Bathroom Remodel | MIDRANGE (55.4% ROI)
Average Cost: $22,866
Average Resale Value: $12,676
Bathroom Remodel | UPSCALE (55.6% ROI)
Average Cost: $70,886
Average Resale Value: $39,403
Contact Elite Remodeling to make the most of 2021 remodeling trends in Dallas
The cost vs. value ratio is just one aspect of choosing a remodeling project for your home. At Elite Remodeling, we can make your design ideas come true, helping you enhance your home’s comfort, aesthetics, functionality, and accessibility.
Our team of certified professionals in kitchen and bath remodeling will discuss your wishes with you and recommend the best possible option for you, both in terms of resale value and the less quantifiable subjective value of your remodel. Get in touch with us now.