Texas Home Remodeling Projects Grew More Profitable, Popular in 2013

Texas Association of Realtors releases the 2014 Texas Remodel Valuation Report

AUSTIN, Texas--()--Home remodeling projects in Texas’ major cities grew increasingly profitable and popular in 2013, according to the 2014 Texas Remodel Valuation Report released today by the Texas Association of Realtors.

Dan Hatfield, chairman of the Texas Association of Realtors, commented, “All aspects of Texas real estate are strong, including the home remodeling market. As demand for Texas homes continues to rise, homeowners and sellers can significantly contribute to their home’s resale value through small projects and smart additions.”

The report analyzed the project recoup costs and recoup cost growth in 2013 for over 20 different remodeling projects nationwide, in the South Central U.S., and in Austin, Dallas, El Paso, Houston and San Antonio.

Four of the five Texas markets in the report showed significant gains in project recoup costs in 2013, excluding San Antonio, which showed small declines in recoup cost growth. In addition, remodeling trends were consistent across the state with all five Texas markets demonstrating that smaller, functional remodeling projects showed greater increases in recoup costs than upscale, luxury projects.

Smaller projects that boost a home’s curb appeal continued to be popular in most markets. Steel entry door replacements, for example, ranked No. 1 for total recoup cost nationwide, in the west south central U.S., and in Houston, recouping up to 105.5 percent of the total project cost.

In addition, projects that increased a home’s livable square footage using existing spaces showed significantly higher recoup cost values and growth in 2013. Basement remodels ranked in the top five for recoup cost in four of the five major cities in Texas, recouping up to 99.6 percent of the total project cost.

Conversely, costly room additions and upscale remodeling projects were among the least profitable projects. Sunroom additions, for example, ranked in the bottom five for recoup cost in five Texas metro areas, recouping a maximum of 61.3 percent and as little as 38 percent of the total project cost.

“Texas homebuyers want a home that not only meets their family’s needs but maximizes existing square footage and functionality,” adds Hatfield. “But with a competitive housing market in many of Texas’ metro areas, more homebuyers are willing to do remodeling projects once they purchase a home instead of waiting for that perfect home to come along.”

Major renovations were popular in more functional rooms such as kitchens and bathrooms. Kitchen remodeling projects ranked in the top five for recoup cost growth in all five Texas metro areas, recouping up to 143.9 percent of the total project cost.

Finally, projects that increased a home’s sustainability showed significantly higher recoup cost values and growth in 2013. Backup power generators ranked No. 1 for recoup cost growth in Austin, El Paso and Houston including a 105.1 percent gain in recoup cost in El Paso in 2013. In addition, natural materials, such as wood, cement and steel, led to a significantly higher recoup cost than synthetic, plastics-based materials, such as composites and vinyl.

About the Texas Remodel Valuation Report

The Texas Remodel Valuation Report is based on survey data from the 2014 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. To view the Texas Remodel Valuation Report in its entirety, visit www.TexasRealEstate.com.

About the Texas Association of REALTORS®

With approximately 90,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit TexasRealEstate.com to learn more.

Contacts

Pierpont Communications
Stacy Armijo, 512-448-4950
sarmijo@piercom.com

Contacts

Pierpont Communications
Stacy Armijo, 512-448-4950
sarmijo@piercom.com