Jhome improvement trend that has surged as people spent more time at home during the pandemic shows no signs of stopping: a recent survey by Zillow found that 72% of homeowners had at least one real estate project on their to-do list in 2022.
Zillow worked with Realm, a homeownership data and insights platform, to uncover the most popular renovation projects in 35 metropolitan areas. Here are the top 10 projects according to their national ranking:
- Bathroom renovation
- kitchen renovation
- Addition to the first floor
- Exterior painting
- Rear house (accessory dwelling)
- Interior painting
- Addition to the second floor
Unsurprisingly, bathroom and kitchen upgrades continue to reign supreme. The landscaping in slot #3 shows that curb appeal is always valued.
Appearance on the backyard house list, or accessory accommodation (UMA)is likely indicative of the push toward more multi-family housing, whether for property investment opportunities or additional space for members of a multi-generational household. According to data from Realm, the return on investment (ROI) of an ADU is 75% of the cost of the primary residence per square foot. An in-law suite is an example of an ADU; HomeAdvisor, which is owned by Angisays adding one will cost around $82,500 on average.
Regional Factors Influence Home Improvement Priorities
A closer look at the data in the report shows that a number of projects that did not make the national top 10 list were particularly popular with homeowners in various metropolitan areas. These exceptions not only reflect homeowner preferences, but also regional factors, such as weather and local real estate markets. Let’s take a look at some of these outliers:
Metropolitan areas included: San Francisco; New York/Northern New Jersey; San Jose, California; Phoenix
A new and improved heating and cooling system is more of a necessity than a luxury in regions with extreme weather conditions, so it’s no surprise that this home upgrade was in the top 10 regions. where extreme weather conditions are often expected. According to HomeAdvisor, the average cost of a new HVAC system is $7,000.
Metro areas included: Los Angeles, San Jose and other parts of California
A number of California metro areas have seen garage conversions in their top 10. Due to the state’s housing crisis, homeowners with the necessary permits are now allowed to convert their garages into ADUs suitable for use. dwelling. According to HomeAdvisor, the average garage conversion cost is $14,493.
Metro areas included: New York/Northern New Jersey; Seattle; Washington D.C.; denver
A finished basement adds valuable living space to a home. But converting the lowest level of a house into a legal basement apartment can also add much-needed housing in tight urban markets. The average cost to convert a basement to a one-bedroom apartment is $63,000 per HomeAdvisor. However, with high-end finishes, this cost could exceed $100,000.
Metropolitan areas included: Chicago; Philadelphia Cream; Minneapolis/St. Paul and Bloomington, Wisconsin
New windows not only improve the aesthetics of a home, but they can also save money on energy costs. Many areas that considered window replacement a priority renovation are known for their extreme seasonal weather conditions. If you’re in a location where drafty windows are a problem, expect to pay an average of $800 per replacement window, according to HomeAdvisor, plus installation.
Metropolitan areas included: Orlando, Florida; Philadelphia Cream; Columbus, Ohio
Roof replacement is a large and expensive project that homeowners tend to put off. Although you won’t recoup all of your investment, a new roof will attract the interest of more potential buyers. HomeAdvisor says a new roof will cost an average of $8,597.
Other projects that were on regional top 10 lists, but not nationally, include attic conversions; new flooring; and replacing the front door, driveway and/or garage door. In some areas, adding a fire pit or pergola to the backyard has made a difference, signaling a preference among homeowners to spend more time outdoors year-round.
While a kitchen or bathroom upgrade is generally always a good idea, it’s important for investors to keep their finger on the pulse of other home renovations that matter to buyers in their local market.
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