When it comes to home renovations, it’s important to consider not only the immediate benefits of the project but also its potential resale value. The annual Cost vs. Value Report by Remodeling Magazine analyzes the average cost of various renovation projects and estimates their potential return on investment (ROI) in the current housing market. In the Pacific region of the US, Los Angeles is a particularly popular area for home renovations. Let’s take a look at the top 5 home renovation projects with the highest recuperation rate and the bottom 5 with the lowest recoup rate in the Los Angeles, CA area according to the 2023 Report. Some of these projects may be confirmation of what you know and some may shock you. If you have questions about a Huntington Beach home renovation call me.
Top 5 renovation projects with the highest recoup rate:
Manufactured stone veneer: The project involves replacing the existing vinyl siding on the bottom third of the street-facing facade of the house with manufactured stone veneer. The average cost of the project is $12,989, and it has an estimated ROI of 109.8%.
Garage door replacement: This project involves replacing an existing garage door with a new four-section garage door with heavy-duty galvanized steel tracks. The average cost of the project is $3,776, and it has an estimated ROI of 107.3%.
Entry door replacement (steel): this project involves replacing an existing entry door with a new 20-gauge steel entry door with clear dual-pane half-glass panel, jambs, and an aluminum threshold with composite stop. The average cost of the project is $1,981, and it has an estimated ROI of 94.5%.
Minor kitchen remodel: This project involves replacing cabinet fronts with shaker-style wood panels and drawer fronts, installing new hardware, replacing laminate countertops with new ones, and installing a new stainless steel sink and faucet. The average cost of the project is $27,772, and it has an estimated ROI of 88.4%.
Siding replacement (vinyl): this project involves replacing the existing siding with new foam-backed insulated vinyl siding, including all trim. The average cost of the project is $18,929, and it has an estimated ROI of 84.9%.
Bottom 5 renovation projects with the lowest recoup rate:
Backup Power Generator: This project involves installing a new standby generator to provide backup power during outages. The average cost of the project is $17,500, and it has an estimated ROI of 41.6%.
Home office remodel: This project involves converting a spare bedroom into a home office with custom cabinets, a laminate desktop, and recessed overhead lighting. The average cost of the project is $38,582, and it has an estimated ROI of 43.5%.
Sunroom Addition: This project involves adding a 200-square-foot sunroom with a new foundation and footings, vinyl windows with insulated glass, and a sliding door. The average cost of the project is $113,238, and it has an estimated ROI of 47.4%.
Major kitchen remodel: This project involves gutting the kitchen and replacing everything, including cabinets, countertops, appliances, flooring, and lighting. The average cost of the project is $81,700, and it has an estimated ROI of 47.5%.
Bathroom Addition: This project involves adding a new 6-by-8-foot bathroom to an existing space, including a fiberglass shower with a glass enclosure, a toilet, and a vanity with a solid-surface countertop. The average cost of the project is $49,782, and it has an estimated ROI of 52.4%.
When planning a home renovation project in the Los Angeles, CA area, it’s important to consider not only your personal preferences and needs but also the potential resale value of the project. As seen in the 2023 Cost vs. Value Report, certain projects tend to recoup a higher percentage of their cost than others. This doesn’t mean that you should always choose the highest recoup rate projects, as personal preference, location, and other factors may also come into play.
However, it’s always a good idea to weigh the potential return on investment against the upfront cost when deciding on a renovation project. It’s also important to keep in mind that the cost and ROI estimates provided in the report are just averages, and your actual cost and ROI may vary depending on factors such as the size of your home, the quality of materials used, and the contractor you hire.
Therefore, it’s always a good idea to get multiple quotes from licensed and experienced contractors and to do your research before making a decision. With careful planning and execution, a home renovation project can not only improve your living space but also add value to your home.
Also don’t forget to call me for what your Huntington Beach home value is to see if it makes sense to sell now with these upgrades and remodels.
