When it comes to home remodeling projects, homeowners are all about improving either a home’s curb appeal or energy efficiency. This is true in Dallas, the state, and the nation.
A new report from the Texas Association of Realtors released Friday, the Texas Remodel Valuation Report, looked at the profitability and popularity of home improvement projects in 2015 both nationally and locally.
Remodeling projects continue to be popular and profitable in Dallas. This is true even though profitability of most home remodeling projects in Dallas declined slightly in 2015, with ROI ranging between 51.5 percent and 108.6 percent.
Lots of people here buy a fixer upper and choose certain strategic projects to make it more livable and energy efficient. Others choose to complete a few projects before putting a home on the market to boost resale value.
Locally, the biggest bang for a homeowner’s remodeling buck came from manufactured stone veneer, a lower-cost alternative for siding, fireplaces, and other stone projects. In Dallas, people recouped on average 108.6 percent ($7,920) of the total project cost. It was also in the top five most profitable projects in all Texas markets with the exception of Houston, seeing a 157.9 percent ROI statewide.
Just behind veneer is fiberglass attic insulation, which increases a home’s overall energy efficiency. In Dallas, homeowners saw a 100.9 percent ROI on their insulation projects in 2015, according to the report.
Upscale renovations were both profitable and not: high-end garage door replacements showed the highest annual increase in recoup cost in 2015 of all projects, increasing 19 percent over 2014 to regain 82.2 percent ($2,550) of the total project cost, on average.
But upscale bathroom remodels were the least profitable project, recouping just 51.5 percent ($28,618) of the total project cost. This is a 24.9-percent decrease from the year before.
Midrange improvements almost always saw bigger ROI than luxury ones everywhere. Homeowners who went with a midrange garage door replacement saw 96.8 percent ROI.
Garage door replacements, a quick and easy way to boost curb appeal, consistently ranked among the top five most profitable projects in Austin, Dallas, El Paso, Houston, and San Antonio, seeing a 112.1 percent ROI of the total cost.
Interestingly, the 2015 report showed remodeling projects that maximized a home’s existing square footage were among the least profitable projects in 2015.
Additionally, bathroom, deck, and master suite additions were among profitable in Texas, bringing as little as 25.5 percent ROI.