According to Remodeling Magazine’s 2020 Cost vs. Value Report, the average costs associated with different home improvement projects over the past year, along with the amount homeowners would likely be able to recoup for the improvement upon selling the house. Researchers polled nearly 1,400 full-time real estate professionals, each of whom had a network of more than 100 consumers. The questions focused on 22 home improvement projects completed in more than 100 U.S. markets.
The study found that the overall cost-to-value ratio was 63.7%, meaning consumers were able to recoup an average 63.7% of their investment when making home improvements. That was down from 71.2% in 2014.
The biggest factor that contributed to the declining return on investment for homebuyers was an increase in building material costs. Still, the study’s researchers described the remodeling market as “healthy.”