The Texas Remodel Valuation Report shows whether homeowners get the most bang for their buck.
There are many factors that go into whether a remodeling project is a good fit for a home in addition to impact on resale value, such as the homeowner’s expected tenure in the house and, for energy-efficient upgrades, how long it will take the project to pay for itself in cost savings.
Fortunately for Texans, the Texas Remodel Valuation Report shows that remodeling projects continue to be popular and profitable in the Lone Star State as a whole.
- A growing number of Texas homebuyers prefer to buy a lower-priced home and remodel it to suit their exact needs or make the home more energy efficient.
- More and more Texas home sellers are also seeing the value in investing in a few strategically chosen projects before listing to sell their home faster and potentially at a higher price.
- Both nationally and in Texas’s six major markets, one or more remodeling projects recouped 100 percent or more of project costs in 2015.
Home remodeling projects in Houston, McAllen, and El Paso showed the highest year-over-year growth in profitability. However, a majority of remodeling projects in Austin, San Antonio, and Dallas declined slightly in profitability from 2014 to 2015.
Austin Home Remodel Projects At-A-Glance
While profitability may have declined slightly in Austin, the area’s home remodeling projects still showed the highest recoup costs, ranging between 49.7 percent and 163.4 percent.
The five most profitable projects recouped an average 123 percent of the total project cost – 9.3 percentage points more than 2014.
For more details, download the complete Texas Remodel Valuation Report here.
The Texas Remodel Valuation Report is based on data from the 2016 Cost vs. Value Report by the National Association of REALTORS® and Remodeling magazine. The Texas Association of REALTORS® distributes insights about the Texas housing market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends, and more.