5 Home Improvement Projects That Pay Off
When it to home renovations, there's a common misconception that only large-scale projects can yield significant returns on investment or enhance your living experience. However, recent findings from the National Association of REALTORS (NAR) "odeling Impact Report" suggest otherwise. It turns out, several smaller, more budget-friendly home improvement projects can also provide substantial payback and joy.
This is particularly encouraging news for the one in five millennials and Gen Xers who compromised on their home purchases in 2021, as well as for those whose offers were rejected and are choosing to stay put. In today's economic climate, where inflation is a concern, considering a smaller remodel could be a wise decision. Not only are these projects more suited to DIY efforts, saving you additional money, but they also align with the preferences of young millennials, 10% of whom are specifically looking for fixer-uppers to apply their DIY skills.
### Top 5 High-Performing, Budget-Friendly Home Improvement Projects
#### 1. **Hardwood Flooring Refinish or Replacement**
Refinishing hardwood floors is not only cost-effective (estimated at $3,400) but also offers a high return, with REALTORS® estimating the value recovered at $5,000—a 147% return. The joy score for this project is a perfect 10, with 100% of consumers feeling more inclined to spend time at home post-project. The appeal of hardwood floors lies in their durability, ease of cleaning, and aesthetic appeal, making them a top choice for homeowners, especially in the post-pandemic era where cleanliness is paramount.
#### 2. **Insulation Upgrade**
Upgrading insulation is another cost-effective project, with an average cost of $2,500 and a full cost recovery expected. This upgrade not only enhances comfort and reduces energy bills but also appeals to potential buyers looking for energy-efficient homes. The joy score here is also a perfect 10, and for those comfortable with DIY, certain types of insulation like fiberglass and mineral wool are manageable to install.
#### 3. **Closet Renovation**
While slightly pricier at an average cost of $6,000, closet renovations offer substantial cost recovery ($5,000) and a high joy score of 10. Consumers report greater functionality and improved organization as the main benefits, transforming basic storage spaces into customized solutions that cater to individual needs.
#### 4. **Laundry Area Upgrade**
Improving or adding a laundry area can significantly enhance functionality and livability, with most consumers achieving their goals of better organization and workflow in these spaces. The cost varies, but a mid-range remodel averages around $7,000, with numerous options for customization, from adding cabinets and countertops to improving lighting and flooring.
#### 5. **Paint One Interior Room**
Painting is perhaps the most accessible DIY project, with the potential to dramatically transform a space. It's also highly cost-effective, with professional jobs costing between $990 and $1,320. The joy score for painting is a perfect 10, reflecting the satisfaction homeowners feel with this simple yet impactful upgrade.
### Conclusion
While large-scale renovations like kitchen and bathroom makeovers continue to be popular, these smaller projects demonstrate that you don't need to break the bank to increase your home's value and your enjoyment of it. Whether you're making do with your current home or preparing to sell, consider these high-return projects that not only promise a good financial return but also make your living space more enjoyable and functional.