“This is consistent with the slight shift toward more expensive projects by renovating homeowners,” Houzz said of the double-digit increases. “Milwaukee, Wisconsin and St. Louis top the list with 67% and 50% annual increases in 2020, respectively.”
Bankrate reported that home renovation costs soared in 2020. But that doesn’t mean they’ll go back down.
“It used to be fixing damage, decay, repair or to get a return on investment to your house,” Mischa Fisher, chief economist at Angi and HomeAdvisor said. “The home is a versatile place, it has to serve all these functions — it’s not just an asset you buy to try to get a return on in three years.”
If you want to renovate your home for a return, though, certain updates are better investments.
“Exterior façade facelifts improve the curb appeal and make a great first impression as buyers approach the home,” Clayton DeKorne, editor-in-chief of Remodeling and JLC magazines told CNBC. “That translates to real dollars at the closing table, which is why we see such tangible returns on those investments.”
Garage door replacement, manufactured stone veneer and a minor kitchen remodel are among the renovations that offer the greatest returns in resale value.