For remodelers and homeowners looking to maximize return on investment, manufactured stone veneer is a safe bet, according to the Remodeling 2018 Cost vs. Value report. In the annual study, materials such as Boral Versetta Stone® offered 97.1% payback on investment at the national level, second only to garage doors. Exterior facelifts overall also proved high in value.
Published in January, the Cost vs. Value report is an annual survey from Remodeling magazine that offers insights into which remodeling projects deliver the highest perceived return in resale value.
The measurement for manufactured stone veneer is based on replacing a 300-square-foot continuous band of vinyl siding from the bottom third of the front of the home and replacing it with manufactured stone veneer, sills, corners, and an address block. This year’s 97.1% perceived ROI is an increase over 2017’s report, where the material offered an 89% return.
On a regional level, manufactured stone veneer offered the highest returns, of 125.5%, in the Pacific region (Washington, Oregon, California, Alaska, and Hawaii).
Overall, exterior projects are paying off, as well. “Except for the minor kitchen remodel, work done on the exterior of the house generated higher returns than did interior renovations,” the magazine stated.
Indeed, exterior projects made up seven of the 10 projects with the highest returns. Among those was siding replacement, which took the fifth spot with a national average of 76.7% cost recoup, up just a hair from 2017’s report.
Regionally, the Pacific again posted higher returns in the siding category, at 86.6%. ROI was also above average in the South Atlantic (82.2%) and New England (80.2%) regions.
Other highlights from the report:
- Compared to previous years, upscale and large projects declined in value. “Growing concerns nationwide about affordability could be leading real estate pros to question moves that would make a house even more expensive at resale than it is now,” the magazine speculated.
- Overall, average payback of the 20 common projects in 100 major markets declined, from 57.9% to 56.8%. Remodeling magazine attributes this to rising costs across all 20 projects versus values increasing in just two-thirds of the projects. The magazine expects that trend to continue this year, with high demand from hurricane and fire recovery keeping prices higher.
- As indicated in the two siding categories above, tech regions in the West, where inventory is low and housing prices have skyrocketed faster than national averages, are reporting higher returns than most others. “Real estate professionals in Silicon Valley rated 17 of our 20 projects as likely to generate more in resale value than project cost if the home where the work occurred was sold within a year,” Remodeling said. “The same was true for 12 projects in San Francisco and the North Bay market of Santa Rosa and for six projects in Seattle.”
Ready to help your customers get more value out of their remodel? Learn more about Versetta Stone mortarless manufactured stone veneer and TruExterior Siding & Trim.
To read more analysis and see results down to metro area, visit the Remodeling 2018 Cost vs. Value portal on Remodeling’s website.