Remodeling Can Be a Good Investment on the West Coast

According to Remodeling magazine’s most recent Cost vs. Value Report 2007, on a national basis, homeowners are receiving the biggest percentage of remodeling cost recoupments on exterior home projects over interior jobs. These most recent results show that value in remodeling is down from the previous year, and that of the projects that saw national cost recovery rates in excess of 80%, only minor kitchen remodeling recovered 83% of cost. The other projects that exceeded the 80% return levels all dealt with the exterior of the home, including an upscale siding replacement using fiber cement materials (88.1%), a wood deck addition (85.4%), midrange vinyl siding replacement (83.2%), and upscale vinyl (81%) and midrange wood (81.2%) window replacements.

However, in our part of the nation, the returns on remodeling were far more lucrative than the national averages. The West Coast reported the highest (over 100%) cost recoupment percentages in six areas, including:

• Wood deck addition (108%) 
• Minor kitchen remodel (103.5%) 
• Upscale wood window replacements (103.4%)
• Wood window replacement (102.9%),
• Fiber-cement siding replacement (100.9%)
• Upscale vinyl window replacements (100.7%)

The least cost recoverable projects on the West Coast include:

• Back-up power generator (63.6%)
• Home office remodel (68.9%)
• Sunroom addition (69.4%)

The list is interesting to look at, especially if you’re considering various projects around the home. The data makes it obvious that the sweet spot for returns is on low-mid range cost projects that are more general in nature, as opposed to individual-specific.  That is, don’t expect to recover as much of your cost on a den remodel that you’ve constructed around a particular office set up, as opposed to a granite countertop investment in the kitchen.

Here’s a nifty online calculator to play with, if you’re considering any remodeling projects around your home. This renovation calculator from CNNMoney is based on the Cost vs. Value data discussed above.