Whether you want to increase your home’s value, its energy efficiency, or just add more comfort, there are plenty of reasons to remodel or renovate your home. But before you set out making upgrades, it’s important to consider the project’s cost vs. its value.
The 2023 Cost vs. Value Report
For 36 years, Zonda Media has shared estimates of common home remodeling projects, comparing costs to the value recouped.
The 2023 Cost vs. Value Report provides data for 150 metro areas across the United States. The cost data was derived from an econometric model that used data from existing home sales and values, as well as local gross domestic product (GDP), among other factors. The resale value data for each project was aggregated from estimates provided by an online survey that Zonda sent to over 6,000 realtors.
We took a look at the 2023 Cost vs Value Report for Chicago.
Jump to the Top 23 Projects by ROI for Chicago 🞃
Exterior Replacement Projects Reign Supreme
Two words: Curb appeal. For the last 30 years, exterior replacement projects have provided a higher return on investment than interior discretionary remodels. In Chicago, 7 out of the top 10 projects with the highest percent of cost recovered were indeed exterior projects. Not only do many of these projects improve curb appeal, but they can also improve a home’s energy efficiency.
This Year’s Hottest Trend: The Electric Heat Pump
This year’s number one project nationally for return on investment (ROI) was the HVAC conversion, where a traditional oil or gas furnace is replaced with an electric heat pump. The HVAC conversion also performed well in Chicago, landing in the number 3 spot for ROI, earning homeowners an average of 96.3% of their costs recouped.
There are many factors at play with the sudden boom of popularity for the electric HVAC conversion: A general cultural shift towards sustainable energy and away from fossil fuels, recent high oil prices, and improvements in technology making heat pumps more robust and able to handle northern climates. Another added benefit of electric heat pumps is that they can also cool your home in the summer, making a separate air conditioner unnecessary.
Minor to Midrange Kitchens and Bathroom Remodels Offer Good Value Recouped and Flexibility
Remodeling projects for kitchens and bathrooms made both the national and Chicagoland top 10 lists for ROI.
If your goal is to maximize your home’s value, smaller-scale kitchen remodels that involve new backsplashes, new appliances, and painting cabinets can offer better value for your dollar. Why? Major remodels to your primary bedroom, bathroom, or kitchen involve updates which are often matters of taste. With a minor or midrange remodel it’s easier for a new homeowner to come in and update the aesthetic.
On the other hand, because of steeper home prices, many homeowners are choosing to stay in their homes longer while investing more into projects that add comfort and hit on that ‘wow’ factor, thereby opting for a major kitchen or bathroom remodel.
Top 23 Projects by ROI for Chicago
| Project | Job Cost | Resale Value | ROI |
|---|---|---|---|
| Manufactured Stone Veneer | $11,486 | $11,937 | 103.9% |
| Garage Door Replacement | $4,586 | $4,475 | 97.6% |
| HVAC Conversion | Electrification | $18,679 | $17,987 | 96.3% |
| Grand Entrance | Fiberglass | $11,672 | $4,908 | 85.3% |
| Siding Replacement | Fiber-Cement | $23,585 | $17,336 | 73.5% |
| Siding Replacement (Vinyl) | $19,416 | $13,930 | 71.7% |
| Minor Kitchen Remodel | Midrange | $27,244 | $19,480 | 71.5% |
| Roofing Replacement | Asphalt Shingles | $29,654 | $16,372 | 62.9% |
| Bath Remodel | Midrange | $25,185 | $15,414 | 61.2% |
| Window Replacement | Vinyl | $21,603 | $12,926 | 59.8% |
| Window Replacement | Wood | $24,848 | $14,765 | 59.4% |
| Entry Door Replacement | Steel | $3,701 | $1,876 | 50.7% |
| Bath Remodel | Universal Design | $38,862 | $17,397 | 44.8% |
| Roofing Replacement | Metal | $48,892 | $20,975 | 42.9% |
| Bath Remodel | Upscale | $77,425 | $28,876 | 37.3% |
| Deck Addition | Wood | $18,822 | $6,992 | 37.1% |
| Major Kitchen Remodel | Midrange | $84,072 | $29,876 | 35.5% |
| Bathroom Addition | Midrange | $58,487 | $19,834 | 33.9% |
| Deck Addition | Composite | $23,783 | $8,057 | 33.9% |
| Primary Suite Addition | Midrange | $164,768 | $51,502 | 31.3% |
| Bathroom Addition | Upscale | $107,261 | $30,290 | 28.2% |
| Major Kitchen Remodel | Upscale | $160,034 | $45,005 | 28.1% |
| Primary Suite Addition | Upscale | $339,955 | $79,043 | 23.3% |
Now is Still a Good Time Tap Into Your Home’s Equity.
While rising home values may cause the real estate market to slow, they also mean you may have more equity to borrow against. A home equity line of credit (HELOC) is a variable rate home equity loan that offers access to a line of credit to draw on when you need it.
If you want to be protected from a rising rate environment, consider a fixed-rate Conventional Equity Loan. With a fixed-rate Conventional Equity Loan, you’ll enjoy the security of one low fixed rate and payment with a variety of terms available.
Make Your House a Home
While a project’s cost vs. value is important to consider when remodeling or renovating your home, it’s just one of many considerations. At the end of the day, being comfortable in your living space is as good a reason as any to tackle that next project.
See if one of our low-rate home equity loans, cash-out refinance, or personal loans can help make your dream design a reality. Give us a call to schedule a free consultation with one of our Residential Lending Specialists: 1-800-323-2611.
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