Remodeling Cost vs. Value

Although returns on home remodeling decreased from 2006-2007, the decline has slowed, according to Remodeling magazine's 2007 Cost vs. Value Report. Remodeling is still a good investment, with two-thirds of the 29 upscale and mid-range projects evaluated by the study returning 65% to 80% at resale. That means homeowners are paying 20 cents to 35 cents on the dollar for more and better space in their homes.

Five of the six projects that earned cost-recovery rates of more than 80% were exterior improvements. The sixth was a minor kitchen remodel. At the other end of the scale, home-office remodels, the installation of a backup power generator and a sunroom addition brought the lowest returns.

Home Improvements with the highest returns:
Upscale siding replacement: 88.1%
Wood deck addition: 85.4%
Mid-range vinyl siding replacement: 83.2%
Minor kitchen remodel: 83%
Mid-range wood window replacements: 81.2%
Upscale vinyl window replacements: 81%

Home Improvements with the Lowest Returns:
Home-office remodels: 57%
Installation of a backup power generator: 58%
Mid-range sunroom addition: 59.1%