The Harvard University Joint Center for Housing Studies estimates that Americans will spend nearly $160 billion for home remodeling projects over the next 12 months
Renovation costs are shooting higher and homeowners are getting a lot less bang for their remodeling bucks, according to a report by the National Association of Realtors (NAR) and Remodeling Magazine.
Last year, for example, adding a master bedroom suite to a house cost an average of $75,959 nationwide and boosted the home's resale value by $64,419 - that's 84.8 percent of the cost recouped. The same job this year cost a lot more - $94,331 - and returned just $68,458, or 72.6 percent.
The least profitable renovation, again this year, is a home office remodel. It recoups only 63.4 percent of its cost.
NAR president, Pat Vredevoogd Combs cautions homeowners to take the data with a grain of salt. "Many factors affect a home's value," she said, "and, consequently, the resale value of any given remodeling project.
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