Highest ROI Home Improvements

Last Updated: April 28, 2022

Happy couple in a bright living room surrounded by cardboard (moving) boxes

Highlights.The best home improvements for resale maximize your return on investment (ROI) and attract more potential buyers. Buyers’ top priorities are cleanliness, functionality, and energy efficiency, in that order.

  • A deep clean has the highest average ROI at 3,650%.
  • Green home updates can boost property values by as much as 23%.
  • Smart home features can boost a property’s value by as much as 10%.
  • COVID-19 quarantines revived the popularity of front porches; in some markets, a new front porch can net up to a 200% ROI.
Most Cost-Effective Renovations (National Market)[1][2]
Renovation Average ROI Average Investment Average Profit
Deep Clean 3,650% $400 $14,600
Basic Yard Care 539% $615 $3,309
Refinish or Replace Wood Floors 137% $4,200 $5,750
Improve Energy Efficiency 99% $749 $739
↳Smart Outlets 468% $44 $206
↳Smart Thermostat 100% $250 $250
↳Upgrade Insulation 100% $2,500 $2,500
↳Tankless Water Heater 0% $200 $0
Renovate Closet(s) 83% $6,000 $5,000
Convert Attic or Basement to Living Space 79% $78,750 $62,225
Update Exteriors 72% $15,406 $11,138
↳Paint Exterior 152% $3,000 $4,560
↳Replace Garage Door 100% $2,000 $2,000
↳Replace Roof 100% $12,000 $12,000
↳Install Fiber-Cement Siding 86% $18,600 $16,000
↳Install Vinyl Siding 82% $18,300 $15,000
↳Install Vinyl Windows 67% $30,000 $20,000
↳Install Steel Front Door 63% $3,150 $2,000
↳Install Wood Windows 63% $48,000 $30,000
↳Build a New Front Porch 61% $9,300 $5,700
↳Install Fiberglass Front Door 60% $3,500 $2,100
Renovate or Add a Room 63% $82,500 $52,320
↳Renovate Kitchen (Major) 75% $80,000 $60,000
↳Renovate Bathroom (Major) 71% $35,000 $25,000
↳Update Kitchen 67% $45,000 $30,000
↳Add New Bathroom 63% $80,000 $60,000
↳New Master Suite 56% $172,500 $96,600

Bar Graph: Net Gains The Best Home Improvements for Resale, including Apply fresh mulch (563% ROI), Install smart outlets (468% ROI), Paint home exterior (152% ROI), Refinish hardwood floors (147% ROI), Replace hardwood floors (130% ROI), Replace garage door (100% ROI), Upgrade insulation (100% ROI), Replace roof (100% ROI), Install smart thermostate (86% ROI), and Install fiber-cement siding (83% ROI)

  • Functional upgrades offer much higher ROIs compared to luxury upgrades.
  • Modest updates and designs leave prospective buyers with plenty of options to customize the home to their liking.
  • Personalization and self-expression are increasingly important to homeowners.
  • DIYers and amateur designers can easily make effective use of line and form (shape), the most important elements of design.
  • Desirable designs are simple (and easy to clean).

Homeowner up on a ladder using a hose to wash house windows

Deep Clean

Cleaning is a homeowner’s top priority. Prospective buyers don’t feel comfortable in a dirty home, and a deep clean increases a home’s value in the eyes of the buyer.

  • Cleaning offers the highest ROI by far, up to 9,900% in some markets.
  • Clean homes fetch an average of $10k-$20k more than houses that haven’t been cleaned well.
  • A professional deep clean costs between $200 and $600 depending on square footage.
  • According to 87% of realtors, the most important thing for a homeowner to do is clean.
  • Cleaning is a safe and easy DIY; water with vinegar is a natural, all-purpose cleanser while old clothes make fine wash rags.

Wash Windows

Washing windows should be a top priority. Dirt on windows stands out prominently; it can be seen from both indoors and out, making it one of the first things potential buyers notice about a home.

  • An older survey of realtors found professionally cleaned windows had a 768% ROI.
  • Potential buyers concerned about energy efficiency are likely to examine a home’s windows.
  • Cleaning windows instantly brightens a room, allowing more natural light into the house.
  • Cleaning makes windows look fresh as though they were recently installed.
  • The necessary expenses for cleaning windows – rags and window cleaner – average a total of less than $10 in any market.
  • Pressure washing is also an option for windows.

Clean Shelves and Cabinets

Prospective buyers are interested in storage space. Most will check cabinets and closets for dimensions.

  • Decluttering costs nothing and adds an average $2,500 to a home’s value.
  • Deep cabinets and closets gather lots of dust and other allergens.
  • Scrubbing the far end and corners of a cabinet highlights storage space.
  • Likewise, clean shelves show off storage and display options.
  • Prospective buyers are more willing to imagine their belongings in a clean space; this helps them visualize living in your home, which makes them more likely to buy.

Scrub Counters and Tiles

Dirty tiles look old, unkempt, and are especially unappealing in kitchens and bathrooms.

  • Shining up tiles makes them look new and resilient, as though they won’t need to be replaced any time soon.
  • Scrubbing grout creates a starker contrast between tiles, making colors more vibrant.
  • Buyers like the idea of a clean, ready-to-use kitchen, without any grease and grime from previous owners.
  • If your counters are stain free and in good condition, you can forgo spending a small fortune on fancy new countertops.
  • Correspondingly, buyers looking for quartzite in the kitchen may be more willing to overlook modest countertops that have been well-maintained.

Scrub Floors and Shampoo Carpets

It can be tough to keep floors clean when welcoming strangers into a home for viewing. A deep clean to remove stains makes daily cleanings much easier, keeping a home in peak condition for every potential buyer.

  • Cleaning wood floors highlights what most buyers consider a selling point; also consider refinishing or replacing an old wood floor.
  • Clean carpets signal that the home is move-in ready.
  • Cleaning floors reduces the appearance of worn spots.
  • Buyers know that replacing carpets and flooring takes time and money up front; no one wants to move their belongings into a dirty home.
  • Floors take up the entire area of the home; an unclean floor in an otherwise clean room makes the whole room appear dirty.

Father and child transplanting green, leafy plants outdoors

Basic Yard Care

Some of the best home improvements for resale are exterior and landscaping updates that enhance curb appeal. Among property owners preparing for resale, landscaping is the most common of all home improvements.

  • Basic yard care has an ROI as high as 539%.
  • The average minor landscaping project has an initial investment of $4,500 and an ROI of 39%.
  • Minor landscaping projects and yard care, such as mulching, are easy to DIY and cost as little as $275.

Manicure the Lawn

This is an improvement that may take even less time and money than cleaning. A freshly mown lawn makes a huge difference in curb appeal, and it doesn’t take long for a neglected lawn to grow out of hand.

  • Use a lawn edger to make clean lines and keep any part of your lawn from looking overgrown.
  • Get rid of any dead patches by cutting them out and replacing them with sod or grass seed.
  • A tidy lawn makes it easier for prospective buyers to imagine their own landscaping projects.
  • A professional mowing service can cost as little as $30 per visit.
  • Irregular mowing damages grass.
  • Mowing is another relatively safe DIY.

Plant and Trim

Healthy plants improve the appearance of a yard. They evoke permanence and vitality, giving the impression of a healthy home conducive to an active lifestyle.

  • Prune trees, bushes, and hedges.
  • Get rid of any dead or dying plants.
  • A variety of plants makes your yard look lush and well cared for.
  • Flowers give your yard color and texture – two key elements of design.
  • Shrubs, bushes, and small trees create texture and add vertical features to your landscape.
  • As with interiors, keep designs subtle and simple for ease of upkeep.

Landscape (Minor)

Landscaping doesn’t have to be expensive. Professional and DIY designers have used chicken wire, old bricks, rusted steel, and other such materials to build desirably rustic walls and borders.

  • A nice-looking yard gives home shoppers a good first impression.
  • A little creative outdoor decor inspires potential buyers to imagine additional landscaping projects, which jump starts their personal investment in the property.
  • Choose features that make for easy upkeep.
  • Use basic materials and simple designs to create clean, attractive lines.
  • Strategic design can make mowing easier.

Closeup of floor finisher, restaining old hardwood floor

Refinish or Replace Wood Floors

Hardwood floors are a classic selling point but only if they’re in good condition.

  • The ROI on a hardwood floor refinish is 147%.
  • It costs an average $3,400 to refinish a hardwood floor; the project grosses an additional $8,400 in resale value for a net profit of $5,000.
  • Total replacement of a wood floor has a smaller ROI at 118%.
  • Replacing a wood floor is also more expensive than refinishing at an average cost of $5,500.
  • A new wood floor nets an average $6,500 at resale.
  • Refinishing a hardwood floor increases durability and evens out worn-through spaces.
  • 22% of realtors recommend refinishing hardwood floors before selling.
  • 13% of realtors recommend replacing a wood floor entirely.
Most Cost-Effective Green Improvements
Renovation Average ROI Average Investment Average Profit
Smart Outlets 468% $44 $206
Smart Thermostat 100% $250 $250
Upgrade Insulation 100% $2,500 $2,500
Tankless Water Heater 0% $200 $0

Small, classic white home with solar panels on the roof

Improve Energy Efficiency

Younger homeowners are especially interested in environmental benefits of energy efficient upgrades, but it’s the financial benefits that turn home shoppers into home buyers. The best home improvements for resale offer long term gains.

  • Energy efficient updates can add up to $50,000 in value to homes worth over $250,000.
  • Purchase and installation of energy efficient windows and doors may qualify you for tax credits.
  • Energy efficient lighting saves money and allows for additional fixtures, such as illuminated staircases and shelving.
  • Replace any appliances that need upgrades with energy efficient options.
  • Improving energy efficiency reduces utility costs and may qualify owners for tax credits.
  • Updating electrical systems also lowers homeowner insurance rates.
  • According to a study conducted by Sopher Sparn Architects, environmentally sustainable homes sold for 23% more than similar homes without energy efficient features.

Incorporate Smart Technology

While making upgrades, be sure to allow for smart home evolution. Among technologically dependent home buyers, smart home technology is essential.

  • A survey from T3Sixy researchers found that installing smart home features can boost a home’s value by as much as 10%.
  • 40% of realtors believe smart homes sell faster at every economic level.
  • Install a remotely programmable thermostat as a smart money-saver that’s also eco-friendly.
  • Smart systems may lower homeowner insurance rates.
  • Every smart feature needs a “dumb” back-up.
  • Use designs with continued upgrades in mind; USB ports will be obsolete one day.

Regulate Heat

Upgrading insulation has a 100% ROI while a tankless water heater pays for itself in energy retention.

  • In colder climates, upgrade or add insulation; Boston University reports that 90% of U.S. homes are underinsulated, which accounts for 40% to 70% of their heat loss.
  • In warmer climates, add ceiling fans to decrease air conditioner dependency.
  • Improvements to attic vents are universally recommended for strategic release of heat and moisture.
  • Install a tankless water heater at an average cost of $200 and improve energy efficiency by as much as 99%.

Woman with a French braid in front of her large, open closet full of conservative, classic-style close

Renovate Closet(s)

Renovate to maximize storage space and add features that “improve livability”.

  • Renovating a closet has an average ROI of 83.3%.
  • The average cost to renovate a closet is $6,000.
  • A renovated closet can add $11,000 in value to a home for a net profit of $5,000.
  • 4% of realtors recommend closet renovation before putting a home on the market.
  • 5% of realtors report an increased demand for updated closet space during the COVID-19 pandemic.

Attic living space with blue couch, seafoam fridge, and modern bohemian aesthetic

Convert Attic or Basement

Converting an attic or basement into a living space allows for multigenerational housing, which has made its biggest comeback since the Great Depression. Extra living space also gives homeowners the option to take on a boarder.

  • Converting a basement into a living area nets an 86% ROI while an attic conversion has a 75% ROI.
  • The average basement-to-living area renovation costs $57,500 and nets $49,250.
  • The average attic-to-living area renovation costs $100,000 and nets $75,000.
  • 5% of realtors recommend converting a home’s basement before putting it on the market.
  • Realtors reported a 17% increase in demand for this home feature during the COVID-19 pandemic.
Most Cost-Effective Exterior Renovations[1][2][3]
Renovation Average ROI Average Investment Average Profit
Paint Exterior 152% $3,000 $4,560
Replace Garage Door 100% $2,000 $2,000
Replace Roof 100% $12,000 $12,000
Install Fiber-Cement Siding 86% $18,600 $16,000
Install Vinyl Siding 82% $18,300 $15,000
Install Vinyl Windows 67% $30,000 $20,000
Install Steel Front Door 63% $3,150 $2,000
Install Wood Windows 63% $48,000 $30,000
Build a New Front Porch 61% $9,300 $5,700
Install Fiberglass Front Door 60% $3,500 $2,100

Young man in flannel painting raw wood white

Update Exteriors

For less than $12k, you can add more than $22k to your home’s value.

  • Consumer Reports recently found that improving a home’s curb appeal adds 3% to 5% to the property’s overall value.
  • Real estate agents report a 238% ROI on exterior projects in general.
  • Landscaping projects in general yield an estimated 39% ROI.
  • Major landscaping projects in general yield a 0% ROI.
  • 27% of sellers landscape their yard before they put their home on the market.
  • Property owners spend 20% of home improvement funds on exterior replacements.

Paint Exterior

Painting refreshes surfaces, making them look clean and new.

  • A $3,000 exterior paint job increases a home’s value by an average $7,500.
  • Painting can be a budget-friendly alternative to siding replacement; the initial investment is 1/6th of the cost of new vinyl siding.
  • Painting the exterior of a home returns more than its initial investment.
  • Exterior painting can be a DIY for experienced painters.

Replace Roof & Siding

Both roof replacement and siding require a large investment up front but may return as much as $28k.

  • Roof replacement has a 100% ROI.
  • A new roof improves energy efficiency through heat retention.
  • Fiber-cement siding requires a slightly larger investment but returns at a higher rate than vinyl siding.
  • New siding improves the appearance of the home from every angle and can make a home more energy efficient through temperature regulation.

Replace Doors & Windows

Energy efficiency is a key factor when replacing doors and windows; some buyers may ask to see utility bills, so getting this done early can showcase utility savings from one season to the next.

  • In 2022, replacing a garage door offers a 100% ROI.
  • Real estate agents reported a 133% ROI on garage door replacement in 2021.
  • Replacing a garage door offered a national average -5% ROI in 2020.
  • Purchase and installation of energy efficient windows can earn you a 10% tax credit up to $200.
  • Doors and skylights can earn a 10% tax credit up to $500.
  • Replacing windows and doors may reduce drafts, improving energy efficiency and homeowner comfort.
  • New doors and windows are more likely to be adaptable to smart house technologies, such as remote locks.
Most Cost-Effective Room Updates & Additions (National Market)[3]
Renovation Average ROI Average Investment Average Profit
Renovate Kitchen (Major) 75% $80,000 $60,000
Renovate Bathroom (Major) 71% $35,000 $25,000
Update Kitchen 67% $45,000 $30,000
Add New Bathroom 63% $80,000 $60,000
New Master Suite 56% $172,500 $96,600

Framing for a new room, exposed insulation and duct work

Renovate or Add a Room

Exercise caution when considering additions and upgrades.

  • In some markets, kitchen and bathroom improvements offer the highest ROIs.
  • Luxury remodels often have a negative ROI.
  • Multipurpose or “flex” spaces are popular among younger and first-time buyers.

Renovate the Kitchen

Prospective home buyers tend to look at this room closely for any potential updates they’ll have to make to suit their own lifestyles. Over the past decade, for example, meal preparation has become more popular as a social activity. A few minor, inexpensive improvements maximize space to make the room appear larger, brighter, and more inviting.

  • Minor kitchen renovations of $5k-$15k average a 100% ROI at resale.
  • The University of Central Florida’s College of Business reports homeowners who made $20,000 kitchen renovations recouped an average of 82% of the cost when they sold their home.
  • In some markets, a minor kitchen renovation is the best home improvement for resale.
  • Sand and paint cabinets; there is no need to buy new unless the existing cabinets are trashed.
  • Painting cabinets a light, neutral color makes a kitchen appear larger and brighter.
  • Maximize counter space; islands and peninsulas have become popular methods of both increasing counter space and providing a place to be sociable.
  • 3 or 4 additional square feet of counter space can make a tremendous difference to prospective buyers.
  • $50 to $100 per square foot is an average price range for countertops; high quality materials, such as granite, can run as high as $200 or more per square foot.
  • Install sun tunnels – capped skylights that use mirrors to reflect sunlight – to bring more natural light into a room from above.
  • Modern homeowners expect lighting beneath and/or inside cabinets.

Renovate Baths

The key to a successful bathroom renovation is functional simplicity. Luxury remodels offer a very low ROI. Use caution with DIY bathroom projects; this is a room where the electrical system and plumbing (i.e. water) are within close proximity.

  • According to some studies, minor bathroom renovations have an ROI as high as 171%.
  • The most important thing about a bathroom is that it’s functional, so fix anything broken.
  • Replace any fixtures with energy efficient upgrades.
  • Maximize storage space.
  • Replace any stained tile and/or flooring; again, bathrooms and kitchens are the worst rooms to leave dirty.
  • Use caution when considering luxury features.
  • According to the Centers for Disease Control and Prevention, someone is hospitalized every 16 minutes due to an injury that took place in a bathroom; always hire professionals and allot for extra time when making bathroom renovations that involve electrical work or plumbing.

Trendy, high-end kitchen with built-in appliances that already looks dated

Renovate with Caution

Regional markets vary, so some projects that offer a high ROI on a national level may not be as lucrative in your area. For example, Midwestern home buyers pay more for updated kitchens but are less impressed with investments in exteriors.

  • A new deck has an average ROI of just under 75%; in some markets they’re an advantage and in others, a liability.
  • Updates to finished basements with walk-out glass doors and windows average a better ROI than improvements to traditional basements.
  • Steel front doors are desirable in some markets, but overall, they have a low ROI.
  • In warm climates, such as the American Southwest, outdoor kitchen additions average between a 0% and 100% ROI.
  • Adding a bathroom may offer a decent ROI under certain circumstances, such as when surrounding homes have an additional 2 or 3.

New Appliances

Always use caution when updating appliances.

  • New appliances can easily become the most expensive part of a renovation, rapidly reducing ROI to as low as -50%.
  • Most major appliances are now highly customizable; features that seem ideal to you may be counter to your buyer’s needs.
  • Unwanted appliances take up valuable space.
  • Major appliances lacking in energy efficiency can be deal breakers.
  • Energy efficient and smart appliances may add value to a home.

Additions

At the turn of the 21st century, room additions were the biggest trend in home improvements, with 18.2% of owners adding at least one new room to their existing home.

  • In some markets, adding a home office may have an ROI as high as 48%.
  • Additional space requires more cleaning as well as heating and cooling.
  • An average room addition can cost homeowners upwards of $60,000 after resale.
  • A new addition is the quickest way to price your property out of its market.
  • Added rooms often appear out-of-step with the rest of the home in terms of design and/or material.
  • Added rooms decrease exterior space, which may be undesirable in warmer climates.
  • Converting unfinished spaces into livable areas can accomplish the same goal as a room addition (additional square footage) at a much lower cost.

Back Yard Upgrades

Backyard gatherings are popular, leading some homeowners to think a backyard redesign will attract potential buyers. In practice, buyers prefer a back yard that’s adaptable to their favorite outdoor activities. Mow and trim, but leave the back yard as “blank” as possible.

  • Elaborate outdoor kitchens have emerged in some markets as a desirable, high-end feature, but their ROI can be as low as -55% in some markets.
  • Projected ROIs for backyard projects vary widely from one market to the next, but for the average property owner, they are a highly risky investment.
  • The back yard is typically the last thing homeowners look at.
  • Home shoppers usually have their own plans for a back yard in mind.
  • Unwanted backyard features are costly for buyers to remove.

Finished Basement

Some guides recommend finishing a basement to add more heated square footage to a home. In some markets, however, a finished basement doesn’t always have the best ROI.

  • Finishing a basement costs between $10,000 and $90,000.
  • An unfinished basement is rarely a deal-breaker.
  • Most people use basements primarily for storage even when the basement is finished.
  • Most people don’t spend a lot of time in their basements due to a lack of natural light.
  • Finishing a portion of a basement as a media space or mudroom-laundry may be an ideal compromise.

Trendy Upgrades

While functional home trends may be useful, decor trends look dated after a few years. Homebuyers know this, and generally don’t want to consider renovating before they’ve even moved in. It’s a very niche market that looks for the latest in design trends, and such upgrades drive up home prices.

  • 51% of current homeowners have lived in their home for more than 15 years.
  • By some measures, nationwide home prices increased by an average 18.8% in 2021.
  • In some markets, home prices increased over 30% in a year.
  • Media forecasts warn of ballooning mortgage rates in the not-so-distant future.

Overwhelmed man remodeling kitchen, one hand over face, paint brush in hand, covered in paint

Worst Home Improvements for Resale

The worst thing a homeowner can do is attempt a full remodel. Major renovations or remodels rarely, if ever, offer a decent ROI. Elaborate home features, though popular in some circles as status symbols, are generally undesirable.

  • Avoid luxury upgrades, which have a low ROI in most markets.
  • Buyers still want to customize homes to their liking, so extensive or highly customized renovations are not recommended.
  • Don’t price yourself out of your market or renovate a home that is unlikely to appreciate in value.
  • Elaborate designs collect dust and are more difficult to clean.
  • The Remodeling Cost vs. Value Report, which some professionals consider the home improvement bible, figures a 77% ROI on kitchen upgrades exceeding $23,000.
  • Homeowners who make upscale or luxury renovations prior to resale stand to lose upwards of $50,000.

Luxury Baths

A common mistake among home sellers is assuming luxury additions will attract wealthier prospects. In reality, upscale renovations are worth less dollar-for-dollar than simply replacing windows.

  • Many luxury bathroom fixtures, such as heated tile and extra large tubs, drive up utility costs.
  • Most people are uninterested in luxury tubs, and in fact, removing a large bathtub has a much higher ROI than installing one.
  • Luxury updates also tend to be more difficult to keep clean.
  • The bathroom is the one place where a great deal of space isn’t desirable; in addition to the added cleaning, most home buyers would rather have that square footage added to the kitchen or family room.

Luxury Bedrooms

A master suite is one of the least cost-effective additions to any home. The best home improvements to make in bedrooms are those that improve energy efficiency and integrate smart home technology.

  • Enlarging a bedroom makes it seem less “cozy”.
  • Adults don’t spend a lot of time “hanging out” in their rooms and have little need for the seating master suites often include.
  • Master suites also traditionally include attached master bathrooms; many home buyers are uninterested in the additional privacy.
  • Buyers know they’re going to be asleep for most of the time they spend in their bedroom, making amenities there less appealing than those in high traffic areas, such as the kitchen.
  • A master suite is difficult to repurpose, leaving a large portion of the home domestically inflexible.

Sunny, modern living room renovation before and after, blended photo

Why Make Improvements Now?

Even if you don’t plan to take advantage of the seller’s market, it’s never too early to think about resale value. Making regular updates and keeping up with routine maintenance is the best thing a property owner can do for their investment.

  • In 2021, home prices increased 15.8%, and in 2020, they increased 17.8%.
  • From 2016 to 2019, home prices increased at an annual rate of 5.9%.
  • 99% of agents say their local housing market is either balanced or favors sellers.
  • 46% of realtors expect current trends to continue, with demand outranking supply into the next peak season.
  • The average homeowner spends over $1,100 each year on home improvements.
  • The average household size is on the rise for the first time in 160 years.
  • Multigenerational households are on the rise, increasing at an annual rate of 3.5%.
  • The average cost of rent has increased faster than ever before, making property ownership and rental appealing to investors.

Analysis: Recent Changes & Future Projections

As of this writing, real estate agents project the seller’s market will continue into 2022. The market can change quickly, however.

Realtors and renovators have noted that front porches have made a surprise comeback in the wake of COVID-19. In fact, curb appeal in general has an increased ROI. For example, in 2019 and early-2020, installing a new garage door had a -6.2% ROI. Throughout 2021, however, real estate agents reported that a new garage door netted an average 133.0% ROI.

Experts attribute these changes to quarantines and more time spent socializing outdoors. Therefore, it’s possible that relaxed mandates may lead to a decline in the ROI for projects that increase curb appeal. This is not necessarily a forgone conclusion, however.

Well-defined spaces are more desirable than open floor plans. Dedicated wellness and work space are more popular home features as employees resist returning to office settings. This appears to extend to the home’s exterior spaces, as well. With more people working from and spending time at home, it’s possible that outdoor spaces and curb appeal will be important to homeowners for years to come.

All of this is speculation, of course. The market is as unpredictable as human behavior. The WFH phenomenon may end as quickly as it began; one reason homeowners desire clearly-defined work spaces is that they’re more productive in a place that’s devoted to work.

Some people have found they miss the presence of peers with similar professional goals. Some miss the camaraderie of the local gym and nights out among a crowd. To these buyers, an in-home gym or large front porch may be unimportant or even undesirable.

Analysis: Market & Resale Trends

Suburban housing makes up more than half of the national housing market, though that rate may increase. Statistics indicate that COVID-19 has led many prospective home buyers to seek suburban housing. As a result, the price of single family homes, both for sale and for rent, has increased sharply.

Home improvements and upgrades are an important part of resale. Over half of all U.S. homes were built before 1980, when the average home buyer had different values and priorities than buyers do today. Today’s potential homeowners are more concerned about energy efficiency and waste. Moreover, as a reaction to the cookie-cutter homes and McMansions of the ’90s and ’00s, modern homeowners place more value on individuality and opportunities for self-expression.

New trends in household size and makeup – 20% of Americans now live in multigenerational households – may further drive demand in housing and home improvements markets. In the last 25 years of renovation spending as a portion of residential investment, the home improvement market hit its peak in 2011; it is still the highest it’s been since before the 2008 recession. With so much of the economy dependent on these markets, recent years have seen advances in home improvement products as well as increased competition among professionals and buyers.

Sources

  1. Homelight, Top Agent Insights for New Year 2022
  2. National Association of Realtors Research Group, 2022 Remodeling Impact Report
  3. Remodeling Magazine, Cost vs. Value
  4. U.S. Census Bureau (Census), American Community Survey
  5. National Home Builder Association Housing Economics
  6. Joint Center for Housing Studies of Harvard University
  7. CNBC, These Home Renovations Give the Best Returns
  8. Inman, What Home Remodeling Projects Have the Best ROI
  9. Consumer Affairs Housing Trends
  10. Freshbooks, How Much to Charge for House Cleaning
  11. Federal Income Tax Credits and Other Incentives for Energy Efficiency
  12. Zillow Group Consumer Housing Trends Report 2019
  13. Zillow Group, Homeowners: Results from the Zillow Consumer Housing Trends Report 2021
  14. Seller’s Guide: ROI on a Bathroom Remodel
  15. Are Outdoor Kitchens Worth the Investment?
  16. Centers for Disease Control and Prevention, Nonfatal Bathroom Injuries Among Persons Aged >15 Years
  17. National Library of Medicine, No Place Like Home: Home Tours Correlate with Daily Patterns of Mood and Cortisol
  18. How Much Does Landscaping Cost?
  19. HomeLight, Top Agent Insights Q3 2020 Report
  20. Consumer Reports, 8 Ways to Boost Your Home’s Value
  21. Eemax, 3 Environmental and Economic Benefits of Tankless Water Heaters
  22. Caldwell Banker, Smart Homes: An Emerging Real Estate Opportunity
  23. Insulation Institute, What’s the ROI of Attic Insulation?
  24. PEW Research Center, The Number of People in the Average U.S. Household is Going Up for the First Time in Over 160 Years
  25. Census, New Residential Sales
  26. CNN, Home Prices Skyrocketed Last Year
  27. Freedom Window Cleaning, Selling Your Home? Get the Best Resale Value with Professional Cleaning