Cost vs. Value Report
Each year since 1988, REMODELING Magazine's Cost vs. Value Report has compared construction costs for common remodeling projects with the value they add at resale in 60 U.S. housing markets.
Cost data for the Report come from HomeTech Information Systems, a remodeling estimating software company in Bethesda, Md. HomeTech collects current cost information quarterly from a nationwide network of remodeling contractors, and employs an adjustment factor to account for regional pricing variations. Construction cost figures include labor, material, sub-trades, and contractor overhead and profit.
Resale values (cost recouped in the tables) are aggregated from estimates provided by members of the National Association of Realtors. E-mail surveys containing construction costs and median home price data for each city were sent to more than 20,000 appraisers, sales agents, and brokers, yielding data from more than 1,600 respondents (an 8% response rate).
For most homeowners, their home is their largest asset. Remodeling is an investment in this asset, realizing value at time of resale, and as importantly, providing a more comfortable home until it is time to sell.