When the pandemic caused thousands of people to stay in the safe confines of their homes, it shaped a new critical perspective for many homeowners. There was a pressing need to revamp homes into recreational spaces and functional work environments, causing a spike in home renovations. According to the Porch survey, 76% of homeowners began at least one major home improvement project since the pandemic. Now, with inflation on the rise, it’s tricky to upgrade your home and get an optimal return on investment (ROI). You may be wondering, How will inflation affect the cost of my home improvement, and what will my ROI look like?
With the changing economy, it can be hard to know what’s a good investment for your home. The shortage of goods and workers against high demand has created the fastest annual increase of inflation we’ve seen in 40 years. With the current financial climate, you should be tactical with your home improvements, and we’re here to help!
Here are five improvements projected to yield a high return for 2022. So, when the time comes to sell your house, you won’t be eating the cost.
1. Replace the garage door
This may not be the most glamorous way to home renovate, but when we manage our renovations based on the ROI, replacing the garage door is TOP on the list. According to Cost vs Value 2021, the job cost is $3,907 and the resale value is $3,663, giving a 93.8% return on investment. It’s rare to get 100% back for your home improvements but replacing your garage door is most likely as close as you’ll get.
2. Add stone veneer
First impressions are HUGE. Adding a stone veneer is a way to give your home a pretty facelift while ensuring that people like what they see. Most importantly, it’s a bang for your buck. The average ROI for adding stone veneer to a house is 10,386 for the job cost to a $9,571 resale value, which gives you a 92.1% cost reoccupied.
3. Enhance your curb appeal
Whether it’s brightening your front porch with a fresh coat of paint or adding window boxes, you want to create a welcoming visual experience in the front of your home. According to Top Agent Insights for New Year 2022, buyers will pay 7% more for a house with great curb appeal versus a home with a neglected exterior. Enhancing your curb appeal allows you to invest in your home, and then get back from that investment when it’s time to sell.
4. Minor Kitchen Remodel
With a minor kitchen remodel, you keep the original footprint and focus on small updates. It includes replacing old appliances, installing new flooring and backsplash, and anything else that gives your kitchen a fresh look. Minor kitchen remodels cost on average $26,214 with a resale value of $18,927, giving a 72.2% cost reoccupied. You won’t be tearing it down to the stubs! In 2021 the average major kitchen remodel cost around $75,571 with an ROI of $43,364 with only a 57.4% cost reoccupied. When it comes to a kitchen remodel, less is more!
5. Add a pool
From pre-pandemic to 2021 the value of having a home pool went up 69%. The pandemic caused many people to focus on building home environments that promote lifestyle and healthy living. When everyone was forced to entertain themselves at home, pools grew into a valuable commodity. Of course, you have to consider the climate and community, but for many people, this is a good opportunity to invest in a fun outdoor outlet for your family.
The economy is unpredictable, and it can be hard to gauge what will actually yield a return. Your home is an expression of yourself, but as you make updates, stay tuned to the current trends and areas of high inflation. When it comes time for you to start any of your home renovations, contact us to see if you can use the equity out of your current home with our Home Equity Line of Credit program.