According to the Remodeling 2023 Cost vs. Value Report (CVV), released by Zonda Media, costs and values had fallen with an average project value declining to its lowest level since the report was initiated.
Twenty-three remodeling projects were assessed for this report and compared average costs for each with the value retained at resale in 150 U.S. markets. Factoring multiple economic challenges, including a rise in mortgage rates, the surge in inflation, dwindling real estate sales, and supply chain disruptions, this year’s CVV report featured projects that maintained being a premium to homebuyers – even when times are tough.
The study revealed the return on investment for installing manufactured stone veneer (MSV) on the exterior of a home at an impressive 102.3 percent. This placed MSV as the third highest return on investment of projects and is number one in all cladding projects from the study. Fiber-cement siding replacement was valued at 88.5 percent, while vinyl siding replacement came in at 94.7 percent.
“It’s been incredible to see how well MSV continues to showcase a strong return on investment year after year,” said Amerimix Program Director Garen Graves. “Homeowners continue to express interest in household projects and to witness the consistent upward trend with MSV products, even during a challenging economic time, is a testament to what this industry has to offer.
More than 6,000 Realtors were surveyed from which value figures were derived. From those surveyed, an assortment of project specifications was provided along with a response to, “What value does this project add to the sale price of a home?”
With the state of the economy in mind, real-estate professionals heavily emphasized the high returns on investments made to exterior projects – largely because buyers’ decision on a property is significantly based on first impressions from the outset.
The study indicated “buyers are more particular on maintaining extra cash and avoiding putting a dent into their savings,” however, it continued to illustrate the fact that while “homeowners may be conservative when choosing fixtures and finishes, they continue to trade the savings on lower-priced items for the ability to afford higher-priced items they deem more essential or more desirable.”
“Our industry holds great confidence in the outcome of this annual report,” states Graves. “MSV has ranked amongst the top three projects on a national scale in recent years. It’s not only exciting for our industry to appreciate but for our customers. Rarely do you see 100 percent return on home projects.”
In addition to ranking third nationally, MSV was predominantly among the top three projects when considered regionally, as well. Among the nine regions across the U.S., MSV ranked as the top four projects for ROI out of eight regions and topped at sixth in the remaining regions.
Manufactured Stone Veneer’s 2023 cost vs. value return of 102.3 percent was based on an average project cost of $10,925, and a return at the time of sale of $11,177.
© 2023 Zonda Media, a Delaware Corporation. Complete data from the Remodeling 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.