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Two recent studies have demonstrated the power of exterior renovations in a home’s perceived value, showcasing the return on investment of products like stone, siding, and roofing. According to the Remodeling 2024 Cost vs. Value Report and the 2022 Remodeling Impact Report, strategically elevating a property's curb appeal with specific materials can significantly enhance its resale value.
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Exterior Upgrades Top Cost vs. Value Report
The Remodeling 2024 Cost vs. Value Report has once again underscored a consistent trend observed year after year: Exterior home improvement projects tend to wield a substantial impact on a home's overall value.
The 37th annual study compares the average costs of 23 remodeling projects with the value those investments will retain at resale. Eight of the top 10 projects delivering the best return were for the home exterior. One of the leading materials shown to increase a home’s value is manufactured stone veneer (MSV), with homeowners recouping over 153% of the initial cost. This impressive return on investment is a 50 percentage point increase from last year’s study.
Other exterior projects in the top 10 included vinyl siding replacement (80% ROI) and composite deck addition (68% ROI).
Overall, the remodeling investment return skyrocketed this year. “Compared with last year’s CVV reports, 2024’s has seen a surge in a number of project values, with the average values of the top two projects—the garage door and steel entry door replacements—worth double what they were last year,” the Cost vs. Value report stated. “These higher values result in ROIs for the top two projects of almost 200%, and an average ROI for the manufactured stone veneer project of over 150%. These ‘hot returns’ are the highest in the history of the Cost vs. Value report and can be attributed to the unique market for existing homes we have in today’s economy with a combination of higher mortgage interest rates and existing homeowners sitting on loads of equity.”
In addition, “a look at yearly trends shows that project costs have increased consistently over the last decade, while perceived values have fluctuated in recent years. This fluctuation has resulted in a fall in the overall ROI as post-pandemic disruptions roiled housing markets,” Remodeling explained. “However, 2024 shows a definitive turnaround with a solid 5.2% increase in average ROI for the 15 CVV projects that have been in the report since its inception in 2002.”
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Manufactured Stone Delivers High ROI Nationally and Regionally
For manufactured stone, the study looked at the cost recouped from replacing a 300-square-foot band of vinyl siding from the bottom third of a home’s street-facing façade with manufactured stone veneer (such as Westlake Royal Building Products’ Cultured Stone, Eldorado Stone, and Versetta Stone) along with sills, corners, and address block as well as a water-resistive barrier.
In regions across the country, renovations with MSV were reported to yield even higher returns, surpassing other projects on the list. Notable regional figures for MSV include:
- Leading returns in the West South-Central United States (Texas, Louisiana, Arkansas, Missouri, Oklahoma), with a significant 220% return.
- Impressive returns in the Pacific region (California, Oregon, Washington, Alaska, Hawaii), with a notable 203%.
- Solid performance in the Middle Atlantic region (New York, Pennsylvania, New Jersey), bringing in a 159% return.
- Strong percentages from the New England area (Massachusetts, Vermont, Connecticut, Maine, New Hampshire), at 151.7%.
- Healthy returns in the East South-Central area of the country (Alabama, Kentucky, Tennessee, Florida), at 141%.
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Vinyl Siding, Composite Decking Also a Smart Investment
In analyzing vinyl siding, Remodeling studied the effect of replacing 1,250 square feet of existing siding with new vinyl siding installed to the manufacturer's specifications, plus factory trim at all openings and corners and a weather resistive barrier underneath.
Along with an 80% return at the national level, vinyl siding recouped even higher costs in four regions: New England (116% ROI), Mid-Atlantic (96%), Pacific (90%), and West South-Central (84%).
Composite decking, such as Zuri® Premium Decking, rounded out the top 10 best investments, at 68.2% of costs recouped. It also stood out in four regions: Pacific (88% ROI), New England (83%), Mid-Atlantic (70%), and West North-Central (70%). For these projects, Remodeling evaluated the return on a 16x20-foot deck addition with pressure-treated joists supported by 4x4-inch posts anchored to concrete piers, composite deck material in a simple linear pattern, stairs with three steps to grade, and a built-in bench and planter made of the same decking material.
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REALTORS Study: Roofing Recoups Full Investment
According to the 2022 Remodeling Impact Report, there are two major products that provide homeowners with 100% cost recovery: garage doors and roofing.
Sponsored by the National Association of the Remodeling Industry (NARI) and the National Association of REALTORS® (NAR), the report analyzes almost two dozen different remodeling projects. The study results are based on feedback from owners regarding their “Joy Factor,” from REALTORS with respect to cost recovery at resale, and from NARI members regarding remodeling project fees.
Consumers view the most important result of adding a new roof, such as Westlake Royal Building Products’ DaVinci® Roofscapes, Newpoint Concrete™, Unified Steel™ Stone Coated Roofing, and US Tile® Clay Roofing, as gaining a durable roof with long-lasting results and materials (61% of surveyed people). This makes quite a bit of sense, since the top two reasons for those surveyed replacing their roofs was to upgrade worn-out surfaces/materials (51%) and to add features and improve livability (21%).
Additional reasons to replace a roof are often simple. For example, sometimes homeowners are replacing a roof severely damaged by an extreme weather event. Others are looking to optimize the home’s energy efficiency and reduce long-term energy bills. The good news is that, according to the study, the cost recovery to re-roof is 100%, meaning that every dollar spent on a new roof goes directly into the home’s improved resale value.
What type of happiness quota does the new roof bring to homeowners? Quite a bit. On a scale of 1 to 10, with 10 being the highest, the Joy Factor is ranked at 9.2 for people who have completed a new roof project. Eighty-seven percent of those respondents have a greater desire to be home since completing the project.
To dive deeper into these results, see the full Remodeling 2024 Cost vs. Value Report study and associated trends at www.costvsvalue.com and download the 2022 Remodeling Impact Report here.
(Remodeling 2024 Cost vs. Value Report: © 2024 Zonda. Complete data from the Remodeling 2024 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.)