Best Return On Investment Home Improvement Projects – Home improvement and renovation projects are becoming increasingly popular as more and more people spend time at home. Home renovation costs averaged $8,305 in 2020, up $745 from 2019. The most popular projects were bathroom and kitchen renovations. Homeowners spent an average of $2,995 on each project.
And while they may have been fun, many people probably wonder if these projects were worth it financially and how much the repairs would add to the value of their property.
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In this report, we analyze thousands of real estate offers in the nation’s 10 hottest real estate markets. The goal was to find out which renovated or renovated houses have the biggest increase in price per square meter. Before we get started, remember that your experience may vary depending on various factors, such as the renovation you’ve invested in and the age of your home.
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The following five cities offer the best returns for home renovations. The good news is that despite the high cost of living in many of these cities, home values will show impressive growth, especially with well-executed and proven renovation projects. You can use the following information as inspiration for your next project:
The Dallas/Fort Worth housing market is one of the largest in the country. The average sales price is $385,000 and homes spend about a month on the market.
The average price per square meter for unrenovated houses is $203. By comparison, renovated homes cost an average of $249 per square foot. This represents a nearly 23 percent increase in value, or $46 per square foot.
To break this down a bit further, we also took into account the average square meters of apartments completed in 2020. In the Dallas/Fort Worth market, the average square footage is approximately 2,260 square feet. Based on these numbers, an unrenovated average home would cost about $459,210. Meanwhile, a remodeled home would cost about $563,600, meaning that remodeling could help increase the home’s value by more than $100,000.
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Although not as booming as Dallas/Fort Worth, Miami is another popular real estate destination. Homes sell for an average of $415,000 and stay on the market for 52 days, nearly twice as long as the Dallas-Fort Worth market.
The average cost of renovated apartments is $362 per square foot. At the same time, prices for unrenovated apartments are $300 per square foot. The $62 difference represents a nearly 21 percent increase in home renovations.
An average home in Miami would be worth about $678 to $280 before renovations. After improvement projects, this value will increase to approximately $819,255. In other words, home renovations can increase the value of your home by $140,000.
The next entry takes us back to Texas, the state’s most populous city: Houston. Compared to other cities on the list, Houston has a relatively low average housing price. The average sales price is $284,900, and homes stay on the market for just 19 days.
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Homeowners of an average home in Houston expect $142 per square foot before renovation. After renovations, the figure will rise to $167, an 18 percent increase. That extra $26 per square foot may not seem like much, but on average it adds up to over $57,000.
Fourth place is the second largest city in Florida. The average sales price for homes in Tampa is $334,900. Unlike in Miami, homes in Tampa disappear in the blink of an eye and spend 11 days on the market.
In Tampa, renovation construction increases the value by almost 15%. A listing of unrenovated mid-sized homes costs about $495,705. Meanwhile, renovated homes cost about $568,800. This represents an increase of over $73,000. This equates to an additional $32 per square foot as the price per square foot increases from $219 to $252.
The fifth highest ROI can be found in Nashville, another booming market with 1,314 businesses this year alone. Sales are also moving quickly, with homes remaining on the market for just 29 days before selling for an average sale price of $381,000.
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In Nashville, renovations increase home values by 14%, from $235 per square foot to $269. That’s an extra $34 per square foot.
An average home would cost about $531,675 before renovations. After renovations and improvements, the same home sold for about $608,800, which would give it an additional value of over $77,000.
Of course, not all markets see such benefits from renovations. In some cities, renovations increase the value of the apartment little or not at all.
However, if you want to renovate your home and live in one of these markets, fear not. You can use this information to ensure that repair costs are in line with the rest of the market and that repair costs remain under control.
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Located south of San Bernardino and east of Los Angeles, home prices are slightly lower than other West Coast markets. The average sales price is $575,000 and homes spend an average of 24 days on the market.
Before renovations, Riverside apartments are valued at $348 per square foot. After the renovation, the price will increase by only $9 to $356.82 per square foot. This is a 2 percent increase.
With that information in mind, it’s worth applying it to the average Riverside home. Despite only a 2% increase in value from renovations, this equates to a home value increase of over $19,000. An average sized, unrenovated home can sell for around $787,370. After restoration, the value is $806,770.
Next on the list is another California city. San Diego has expensive homes and limited housing.
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Compared to Riverside, the average home is over $200,000 more. The average sales price is $805,000. In addition, the homes remain on the market for only 14 days.
Unrenovated homes average $645 per square foot. Meanwhile, prices for renovated homes average $666 per square foot. A three percent increase equates to $21 per square foot.
The following quote shows the return of double-digit increases in value after the renovation. Housing prices are lower than in California’s neighbors. The average home in Vegas has an average sale price of $375,000, and homes only stay on the market for 25 days.
Taking a closer look at this number, unrenovated homes average $221 per square foot. After renovations, homeowners can expect to pay an average of $242 per square foot. A $21 increase equates to a nearly 10 percent increase in home value.
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For an average, unrenovated home in Las Vegas, this would mean an additional $48,000 when the home sells. More specifically, an unrenovated home can sell for around $499,320. After the restoration, the figure rises to about $547,615.
The Phoenix market is in a similar situation to Las Vegas. The state capital of more than 1.6 million people also has a warm housing market.
Like Las Vegas, the Phoenix market is a better reflection of remodeling values than the California market. With an average sales price of $402,000, renovations add 10 percent to a home’s value. In fact, unrenovated homes are averaging $258 per square foot. Compare that to $284 for refurbished homes, and the $26 improvement starts to add value.
For example, before renovations, an average home would cost about $582,980. With the help of a local kitchen remodeling expert, a home can cost more than $58,000, up to $641,555.
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We are heading back to the west coast for our last market. Seattle and other Pacific Northwest markets are known for their high values and cost of living.
The average sales price in Seattle is $790,000. An average of just seven days on the market shows how hot the Seattle housing market is. This high value also means high square meters even before the renovation. The average home is valued at $487 per square foot before renovations.
However, some home renovations can increase that value by $551 per square foot. That’s $64 per square foot, or a solid 13 percent price increase.
Specifically, an average home in Seattle sells for $1,101,650 before renovations. This is a truly impressive number. However, renovations can add another $144,000 to that value, as renovated homes sell for about $1,245,995 on average.
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Regardless of the market, renovation increases the value of the home. Even if you don’t want to sell, a renovation can help you create the home of your dreams. If you need help planning your next project, find a home improvement expert in your area.
Methodology: Using Redfin.com, we analyzed real estate listings in the 10 hottest housing markets of 2021, according to Zillow.
The analyzed homes are single-family houses with at least two bedrooms that have been sold in the last three months. Houses built in the last 10 years were excluded from the study.
To analyze the average price per square foot of renovated homes, we only reviewed data that contained keywords such as “renovated,” “updated,” and “renovated.” To analyze the average price per square meter of unrenovated apartments, we only looked at ads with keywords such as “maintained” and
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