2007 Cost vs Value Report

This site compares average cost for 30 popular remodeling projects with the value those projects retain at resale in 100 U.S. markets. Check out this year's trends and how they compare to prior years. Editor's Note: Please see here for an important update.

COST VS. VALUE Report 2007

Our 20th annual report shows that remodeling costs continue to increase despite a moderating real estate market.

Share of cost recovered has declined more than 12 points since 2003. The red line tracks all projects; the yellow line tracks only projects included in the Report all five years.
In the face of falling home appreciation rates and rising construction costs, midrange K&B projects maintain higher value at resale when compared with their upscale counterparts (facing page). The exception is an upscale bath addition, which returns 3 points higher than the midrange version.
This graph shows variance by region in the share of cost recovered for all projects in 2007. The Pacific region is well ahead of national averages, and four northern regions also show better-than-average percentages for cost recouped. The 8% to 10% lag in values in all three Sun-Belt regions may be partly due to dropping prices for large new-home inventories in these areas.
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