The annual Cost vs. Value report from BUILDER's sister publication, REMODELING, provides data on how much 30 different home improvement projects are worth in 100 markets nationwide. Industry pros use it to find out how everything from a kitchen remodel to a new deck will increase a home’s value at resale.
There are many reasons builders need to keep an eye on the value of remodeling projects in their market, according to REMODELING editors, who write that the value of these projects is often are tied to the state of the local real estate market. Trends matter, too: Research has found that roughly 60% of homeowners launch a remodeling project within six months of moving in. In addition, the editors note that both new construction and remodeling are predicted to grow this year.
"On the new-homes side, we’re forecasting for 2016 a 15.5% growth in single-family starts, and the number for overall starts [growth] is closer to 12%,” said Toby Morrison, Metrostudy’s national sales manager for building products manufacturing and distribution. “On the repair and remodel side, we’re looking at a growth rate of 3.8%. It’s not a hockey-stick recovery, but we think that trend is going to continue.”