The National Association of REALTORS puts out a report each year that measures the Cost Recovery of Home Improvement projects as well as statistical results of how happy homeowners are with various projects after completion.
Hardwood Flooring was ranked the highest for Interior Projects with an estimated Cost Recovery of 147%.(Refinishing existing flooring can save and is a great re-use project).
Insulation upgrades were an even 100%, but the savings here should be more on the monthly energy bills as with Window upgrades.
The Interior happiness survey results were mainly led by Paint, whether it was Painting the entire Interior of the Home or just one Room.Other high survey results came from Adding a New Home Office, Hardwood Floors, Closet Renovations and Attic Conversions.
For the Exterior, adding a New Roof or New Garage Door were both estimated to Cost Recover 100% of expenses.
Painting was again the highest score for happiness with the results, after the Exterior projects were completed.
According to a study done by Harvard University in 2021, Americans spent about $420 billion in 2020 on remodeling their homes.
From an Investing standpoint, whether its directly into your own Home, or whether its indirectly into Home Improvement Stocks, we feel as though this is a Growth area.Regardless of how chaotic home valuations may get or how volatile interest rates get, home equity and home upgrades will likely continue to be a source of happiness.Happiness is of course abstract and can be fleeting, but this is based on compare and contrasting surveys.
Affordable Housing, Zoning and Urban Planning Issues are not currently at the top of many politicians’ lists because of its long-term complexities.However, we believe that the Design and Planning World of Socioeconomics will be playing a larger role in the near future as Investing in Hard Assets could become a more mainstream hedge vs. inflation.Luxury Homes may increase in value, however, if affordable housing is building upwards, vertically in more desirable locations, it could help bring the prices down and more accessible to new, prospective homebuyers, especially with competitive Bids.Newer, affordable homes will also likely have high-value, standard upgrades that older homes do not have, especially in terms energy savings and Design aesthetics.
It’s important for Homeowners to understand the difference between an Estimate, a Quote and a Bid.
Estimates are what they sound like as a rough idea that will likely have higher final costs.
A Quote is similar to a Stock Quote and can be binding which is good.
Bids are good for the Economy because they bring in Real Market Forces similar to the Bid and Ask price of a Stock and could help with Inflation.Outbid can mean Underbid and Lower Prices.