A lot of homeowners renovated their property last year, including 58 percent of those who use the home design website Houzz. Some believe they got much more for their money than others, though.
Folks who updated their kitchens were most likely to feel that their home value increased due to the project, according to the latest annual Houzz & Home report.
More than 146,000 homeowners in the U.S. were surveyed for the report.
Overall, 80 percent of those who renovated their home in 2017 believed the renovation boosted their home value. Looking at specific areas of the home, however, this percentage varies widely — from 83 percent for kitchen upgrades to 48 percent for yard or core home system upgrades.
The top three projects for return on investment were:
- Kitchen: 83 percent of homeowners believed this project increased their home value
- Master bathroom: 81 percent
- Nonmaster bathroom: 76 percent
The median amounts that homeowners spent remodeling these areas were:
- Kitchen: $11,000
- Master bathroom: $7,000
- Nonmaster bathroom: $3,000
This year, though, homeowners can expect to spend more money or do less remodeling — or both.
The Houzz survey found that 51 percent of homeowners plan to start or continue renovations this year, spending a median of $10,000. That’s down from 58 percent of homeowners spending a median of $15,000 on renovations last year.
Additionally, the costs of labor, products and materials are rising.
Nino Sitchinava, principal economist at Houzz, tells CNBC:
“The implications for the homeowners are pretty severe.”
He notes that examples of products and materials that are becoming more expensive include:
- Doors (including exterior doors)
- Certain home systems that are trendy
Houzz uses “home system” to refer to anything from plumbing and electrical systems to entertainment and security systems.
For more renovations with returns, check out “The Home Remodeling Projects With the Best Payback.”
Or if remodeling isn’t in your budget, check out the smaller projects with returns in “Painting With This Color Can Boost Your Home’s Sale Price by $6,000.”
Finally, if you’re simply looking for a mortgage on a new or existing home, check out our Solutions Center. There, you can search for lenders offering the best mortgage rates.
Have you renovated recently or do you plan to? Tell us why by commenting below or on Facebook.
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