The 2020 edition of Remodeling’s annual Cost vs. Value report shows a predictable increase in costs for all 22 remodeling projects but a consistent dip in the perceived value of those projects at the time of home sale, as estimated by real-estate professionals in more than 100 metro areas across the U.S. This results in a slight downturn on the return on investment for nearly all projects relative to the trends we saw in last year’s report.
Why the difference? The most likely answer is consumer jitters. While remodeling professionals need to stay on point, they can breathe easy. Remodeling activity is growing at a slower rate than in years past, but it continues to grow, and as long as businesses don’t overleverage and are realistic about the return on investments they make now to grow their own business—especially keeping a firm handle on cash flow—the outlook for 2020 looks calm. But real-estate professionals and home buyers are feeling a bit more angst. Or more accurately, are cycling from angst to excitement, depending on the news cycle.