Even though it’s still a seller’s market, many homeowners are choosing to stay put and use their home equity to finance home renovations instead. Spending on home remodeling was not only up in the U.S. in 2017, but is predicted to continue to increase through the third quarter of 2018, according to a report from the Joint Center for Housing Studies at Harvard University.
“Recent strengthening of the US economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity,” Chris Herbert, the Joint Center’s managing director said in a press release last fall. “Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.”
If you’re planning to renovate your home in the near future, you may be wondering which home renovations will get the greatest ROI. The new 2018 Cost vs. Value Report published by Remodeling magazine provides some terrific insight on that topic.
The report compares 21 of the most common home renovation projects, and contains data for the entire country, by region or by city. It found that in 2018, homeowners nationally will not get as big of a return on their home renovations as they did in the past. On average, should expect to recoup about 56% of the costs of their renovations, compared to 64% in 2016.
Here are the top 15 home renovations that the report forecasts will get the biggest ROIs nationally in 2018, along with the percentage of costs that homeowners should expect to recoup if they sold their homes:
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