Once again, exterior projects continue to deliver the best return for homeowners’ investment, according to Remodeling 2022 Cost vs. Value Report. Within that, manufactured stone offered the second-best ROI.
The 35th annual study by Remodeling compares the average costs of 22 remodeling projects with the value those investments will retain at resale. Nine of the top 10 projects delivering the best return were exterior, with manufactured stone taking the second spot, with 91.4% ROI, behind only garage doors (93.3%). Vinyl siding also performed well, with the fifth-best return of 67.2%.
For manufactured stone, the study looked at the cost recouped from replacing a 300-square-foot band of vinyl siding from the bottom third of a home’s front façade with manufactured stone veneer (such as Westlake Royal Building Products’ Versetta Stone), along with sills, corners, and address block. Manufactured stone’s ROI was slightly lower than last year’s study, which showed a 92.1% return, but was 20 percentage points ahead of this year’s No. 3 project, minor kitchen remodel (71.2% return).
“Despite sharp cost increases in 2021, the decline in overall ROI in the 2022 report was a modest 1.2%, proving the resilience of the remodeling market,” Remodeling magazine said.
The other exterior projects in the top 10 were fiber cement siding replacement (68.3% cost recouped); vinyl window replacement (67.5%); wood window replacement (66.3%); wood deck addition (64/8%); steel entry door replacement (63.8%); and composite deck addition (62.1%).
“‘Curb appeal’ and ‘first impressions’ are strong concepts in real estate because they have a surprisingly big impact on how much money prospective home buyers are willing to pay for a home,” the magazine explained. “Prospective buyers who see a ‘buttoned up’ exterior form the impression that the house is in good shape—or, as we all like to say, ‘has good bones’—and they proceed to fit all the new information they learn once they walk through the front door around these positive impressions.”
Manufactured Stone Delivers Most ROI in Two Regions
When the Remodeling 2022 Cost vs. Value report is broken down geographically, manufactured stone shows similar levels of ROI as on a national level. In two regions, however, manufactured stone delivers the most return among all projects: South Atlantic (Maryland, Delaware, Virginia, North Carolina, South Carolina, Georgia, Florida), with 92.5% ROI, and West North Central (North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri), with 93.6% ROI.
Versetta Stone offers remodelers an easy way to leverage the ROI opportunity of manufactured stone. The siding panels provide the beauty and texture of authentic stone masonry in a panelized, mortarless format that can be installed easily by traditional carpenters and siding contractors using nails or screws. Each lightweight panel covers 2 square feet and features a built-in rainscreen. Browse profiles and colors here.
See the full Remodeling 2022 Cost vs. Value Report study and associated trends at www.costvsvalue.com.
(Remodeling 2022 Cost vs. Value Report: © 2022 Zonda. Complete data from the Remodeling 2022 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.)