You are viewing the printer-friendly version of The Cost of RenovationsThe Cost of RenovationsAmericans spent more than $139 billion on home improvements in 2004, according to Harvard's Joint Center for Housing Studies. Homeowners may recoup most of that expenditure in the form of higher prices when they sell their homes.Actually, a homeowner can now expect to make money on some renovations. A mid-range bath remodeling, according to the report, costs an average of $10,499 nationally, but adds $10,727 to the value of the home. That means homeowners make back 102.2 percent of the cost of the remodel. The math for adding a bedroom suite to the attic is almost as positive. Putting in a 15-by-15 bedroom and bath costs an average of $39,188 and adds $36,649 to the home's value. That equals 93.5 percent of the costs being recouped. A deck addition returns 90.3 percent of its cost. On the other hand, some of the poorest returns come from home-office remodelings, which create just 72.8 percent returns. There are many strong regional differences in the percentage of return on remodeling jobs. Westerners value window replacements highly; they return 103 percent of their cost out West compared with only 83.7 percent in the southern states. A bath renovation generates a 111.9 percent return in the West and 104.4 percent in the East, but only 89.5 percent in the midwestern states. An upscale siding replacement recoups far more of its costs in the East (114.9 percent) and South (103 percent) than in the West (98.3 percent). Not that homeowners should take on these jobs to turn a profit. Renovations should be done for pleasure, not profit. "The best reason for a remodel is to enjoy it," said Stacey Moncreiff, editor of REALTOR magazine. aa |