“In the last year the remodeling and replacement activity nationwide grew 5.5% to produce its best showing since before the housing boom,” according to a recent study by the Hanley Wood division of the Metrostudy report.
Brad Hunter, Metrostudy’s chief economist, further pointed out that “growth through the first two quarters of 2015 is much stronger than what was observed in 2014, when the overall housing market had cooled.” Additionally he said, “a big driver of recent remodeling activity has been solid job gains, but the industry stands to benefit even more over the next year from existing home sales hitting an eight-and-a-half year high at the end of second quarter. Stronger resales benefits remodeling activity, as recent homebuyers typically spend more on home improvements than other homeowners. Continued home price appreciation is also encouraging people to put money into their homes.”
We like to show our clients current reports made by “Cost Vs. Value,” so that they can logically understand the return on investment they’re getting when they take on a remodeling project. Furthermore, we like to show our clients the yearly reports so that they can better understand the real costs that go into remodeling areas of their home.
We understand that not every homeowner is fully aware of the costs involved with remodeling a certain areas of their home, which is why we use visual tools like “Cost Vs. Value,” to bring reality to the forefront.
Here are some 2015 examples from the report:
Mid-range Cost of a Bathroom Remodel: Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4-by-4-inch ceramic tile surround; new single-lever temperature and pressure-balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper.
- Baltimore: $16,595.00
- South Atlantic: $15,314.00
- National Average: $16,724.00
Mid-range Cost of a Major Kitchen Remodel: Update an outmoded 200-square-foot kitchen with a functional layout of 30 linear feet of semi-custom wood cabinets, including a 3-by-5-foot island; laminate countertops; and standard double tub; stainless-steel sink with standard single-lever faucet. Include energy-efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.
- Baltimore: $56,396.00
- South Atlantic: $53,957.00
- National Average: $56,768.00
Mid-range cost of a Minor Kitchen Remodel: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Repaint trim,add wall covering, and remove and replace resilient flooring.
- Baltimore: $19,106.00
- South Atlantic: $18,064.00
- National Average: $19,226.00
Mid-range Cost of a Basement Remodel: Finish the lower level of a house to create a 20-by-30-
foot entertaining area with wet bar and a 5-by-8-foot full bathroom; construct 24 linear feet of finished partition to enclose mechanical area. Walls and ceilings are painted drywall throughout; exterior walls are insulated; painted trim throughout. Include five six-panel factory-painted hardboard
doors with passage locksets. Electrical wiring to code. Main room: Include 15 recessed ceiling light fixtures and three surface-mounted light fixtures, and a snap-together laminate flooring system. Bathroom: Include standard white toilet, vanity with cultured marble top, resilient vinyl flooring, two-piece fiberglass shower unit, a light/fan combination, vanity light fixture, recessed medicine cabinet, towel and paper-holder hardware. Bar area: Include 10 linear feet of raised-panel oak cabinets with laminate countertops, stainless steel bar sink, single-lever
bar faucet, undercounter refrigerator, and vinyl floor tile.
- Baltimore: $65,271.00
- South Atlantic: $60,191.00
- National Average: $65,442.00
2015 Cost vs. Value Report
The descriptions of what constitutes each of the particular remodels are defined by the “Cost vs. Value” report. Of course, each project will vary individually. What we want our audience to understand is the reality of the cost involved of certain remodeling projects.
We urge our readers to take these kinds of figures into consideration when they are preparing to get estimates on their next home remodel. Be aware of estimates are too high, BUT also be aware of estimates are too low. If the price seems too good to be true, it probably is.
We feel as professionals in this industry that it is important for us to help educated our current, new or future clients. Arm yourself with knowledge. Use what you know to your advantage when you’re gearing up to get the ball rolling on your next remodeling project!
Lastly, if our readers ever have any additional questions regarding a remodeling the interior of their home, we encourage you to give us a call–or better yet, COME VISIT US!