Projected $500B Growth In Remodeling Industry For 2023

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Projected $500B Growth In Remodeling Industry For 2023

May 5, 2023 | News | 0 comments

The Remodeling 2023 Cost vs. Value Report by reveals that an HVAC electrification conversion is expected to have the highest return on investment in 2023, with homeowners recouping 103.5% of its costs from resale. The report includes informative graphics depicting all the projects featured in the report, displaying their associated costs, recouped value, and ROI percentage. Furthermore, the report highlights the remodeling jobs that have recorded the most significant increases in ROI in the last year. compared the ROI and total costs of the previous year’s projects and predicted that the home remodeling industry would grow to a market size of $485 billion in 2023.

The study indicates that the cost of a home remodeling project does not guarantee a high ROI. The report highlights an entry door replacement as the most affordable project featured, but it has one of the highest ROIs in 2023, disproving the notion that investing more money results in higher recouped value. This suggests that a small financial investment in a home remodeling project can still yield a large return.

On the other hand, data suggests that higher expenditure in a home renovation project typically results in a higher resale value. For instance, a primary suite addition project that costs above $325,000 could potentially increase the resale value of a home by over $73,000.

The report identifies four home remodeling projects that are anticipated to have an ROI of over 100% in 2023. The last time such high returns were recorded was in the 2017 edition of the Cost vs. Value report with fiberglass attic insulation achieving a recouped value of over 107%. Essentially, investing in these projects would enable homeowners to recover the entire cost upon resale while also potentially yielding a profit, albeit a minimal one.