The National Association of Realtors (NAR) recently released their 2019 Remodeling Impact Report. The report, which examines homeowners’ reasons for completing the projects ranked, also provides the costs and seller recovery values for many of the tasks.
The annual report does provide insights into the home ownership demographic concerning their desired improvements and thus potentially predicting the future market concerning sellers and buyers. It is no secret with housing prices in some markets having risen exponentially since The Great Recession has changed the traditional cycles concerning move-up and move-down buyers. Thus entry-level homes have become scarce yet the upper-end of the luxury market has been challenged for the last few years as move-up buyers are staying in their homes and embarking on structural and cosmetic improvements versus moving.
While not surprising new roofs and kitchens continue to be popular as roofs are a basic and important structural component of the home and updated kitchens provide not only satisfaction while in-residence also is desired by potential buyers and usually provides one of the highest ROI when selling.
Of interest in the report is closets: “This year, we saw the estimated cost of closet renovations increase from 2017; however, we also saw an increase in the cost recovered from this project,” Brandi Snowden, director of Member and Consumer Survey Research at NAR, “Because homeowners are staying longer in their homes, we see them investing more elaborately than in the past.”
Another effect of homeowners staying in their residences longer is they’re choosing to invest their money in projects that they’ll use on a daily basis, and that will improve the functionality and livability of their home.
Aside from kitchen renovations and upgrades and closet renovations, other interior projects hugely popular with both homeowners and REALTORS® this year are HVAC replacements, new wood flooring, bathroom renovations and adding new bathrooms.
As far as exterior projects, the REALTORS® surveyed in the report note that new roofing was most popular among homeowners, and, in their opinion, would add the most value to a home.
Of interest during the last two years I too have updated my kitchen with new cabinets, countertops and backsplash. I too had two bedroom closets updated with Elfa from The Container Store. In my former home I had a phenomenal walk-in closet designed by California Closets and was a joy for 25+ years. My next projects are an updated bathroom and refinishing of the wood floors presently hidden under worn wall-to-wall carpeting. While I know I will be in residence for the immediate future I also know the improvements when designed in a timeless, classical manner, I shall be able to recoup the cost invested and enjoy during my residency.