Home improvement is paying off

Homeowners can expect to earn back a larger percentage of the money invested in home improvement and remodeling projects for the first time since 2006, according to remodeling.hw.net. The 2013 national average cost-value ratio went up to 60.0%, which is a three-point increase over 2011-2012.

The Pacific region led the way with an average cost-value ratio of 71.2%, credited to strong resale values. West South Central, South Atlantic, and East South Central followed, primarily because construction costs were lower in these regions compared to the rest of the nation. But return on investment for remodeling really depends on the type of project that is undertaken.

Homeowners might expect to retrieve higher percentages with the following projects, according to House Logic.

• Steel entry door– National average: $1,137; value at resale: $974; 85.6% of investment recouped
• Fiber-cement replacement siding — National average: $13,083; value at resale: $10,379; 79.3% recouped
• Wood deck — National average: $9,327; value at resale: $7,213; 77.3% recouped
• Garage door — National average: $1,496; value at resale: $1,132; 75.7% recouped

The Joint Center for Housing Studies of Harvard University credit the upswing in home improvement projects to retiring baby boomers, who are retrofitting their current homes to age in place. In 2011, homeowners over 55 accounted for over 45 percent of all remodel spending. Additionally, the more than one million distressed properties that sold in 2011 added $10 billion to home improvement sales, according to Eric S. Belsky, managing director of the Joint Center. Belsky anticipates even more spending this year with the approximately “three million…foreclosures and short sales in the pipeline.”