2022 Cost Vs. Value Report

The annual report just came out and to no one's surprise costs & values continue to rise

“This report answers one and only one question,” explains owner John Murphy, “and that is what value does a particular remodeling project add to the sale price of a home right now? But that is only one question and not the most important one at that if you plan to stay in the home beyond a few years. It doesn't tell you why you should remodel.” explains Murphy.



“Most people want, no, need to remodel for more reasons than merely an immediate recouping of their investment in their home,” says Murphy. “They hate how their kitchen looks or works, they are embarrassed by their bathroom, they need more space to raise a family, they have deferred maintenance that could cost them home value. It’s about enjoyment and lifestyle.”



Think like a realtor. What will likely increase the sale price of a home? Exterior curb appeal? Yep. There's nothing like the first impression impact that colors every other impression once you walk through the door. It's no surprise that the top 6 projects in the 2022 report are all exterior in nature. Garage doors are #1 followed by siding. The sleeper at #3 is a minor kitchen remodel. Again, this is about immediate resale, not enjoyment or even homeowner pride. It’s all about "get ‘er done to get ‘er sold."


This graph shows project costs have risen since 2014, with the largest increases in costs in the last two years due to supply-chain disruptions and the pandemic. Mirroring the increase in costs, the value-over-cost ratio as a percentage has steadily declined over the same period, with the sharpest decline in 2021—down 3.6%.


In summary, this report demonstrates that while the value of homes has risen significantly in the past couple of years, it hasn’t caught up with the increase in material or labor costs. However, while you may not be able to recoup all of your home improvement dollars, you are still adding to the overall value to your home while you are enjoying those very improvements.



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