5 Home Improvement Projects That Pay Off
When it comes to home improvements, there's a common misconception that only large-scale renovations can yield significant returns on investment and happiness. However, recent insights from the National Association of REALTORS® (NAR) "Remodeling Impact Report" suggest otherwise. The findings reveal that several smaller, more budget-friendly home improvement projects can also provide substantial payback and joy. This is particularly good news for millennials and Gen Xers, many of whom compromised on their home purchases in 2021, as well as for those who are choosing to stay put after facing challenges in the housing market.
### Top 5 High-Value, Low-Cost Home Improvement Projects
#### 1. **Hardwood Flooring Refinish or Replacement**
Refinishing hardwood floors is not only cost-effective but also offers a significant return on investment. According to the NAR report, the average cost of refinishing is around $3,400, with an estimated value recovery of $5,000—translating to a 147% return. Homeowners also reported a perfect joy score of 10 out of 10, with many appreciating the durability and cleanability, especially in homes with pets.
#### 2. **Insulation Upgrade**
Improving your home's insulation can enhance comfort and reduce energy costs. With an average project cost of $2,500 and a full cost recovery, upgrading insulation is both an economical and environmentally friendly choice. The project also scores a joy rating of 10, making it a satisfying improvement for many homeowners.
#### 3. **Closet Renovation**
Though slightly pricier at an average cost of $6,000, renovating your closet can recover about $5,000 of the value, or 83%. Homeowners find that closet renovations greatly enhance functionality and livability, with a joy score of 10. Modern closet solutions offer customizable storage options that cater to individual needs, from expansive shoe collections to maximized hanging space.
#### 4. **Add or Upgrade Laundry Area**
The laundry room often goes overlooked, but updating this space can significantly improve your home's functionality. Depending on the extent of the remodel, costs can vary, but the average is around $7,000 for a well-equipped space. Enhancements like additional countertops, better lighting, and efficient storage can transform laundry from a chore into a more pleasant, functional task, with a high joy score of 9.5.
#### 5. **Paint One Interior Room**
Painting is perhaps the most accessible DIY project, offering a dramatic change at a minimal cost. The average professional job costs between $990 and $1,320, but doing it yourself can reduce that cost significantly. A fresh coat of paint not only brightens a room but also addresses wear and tear, achieving a joy score of 10. Whether you choose trendy colors or a classic palette, painting is a quick, satisfying update to any space.
### Conclusion
The NAR "Remodeling Impact Report" highlights that smaller home improvement projects not only cost less but can also offer competitive returns and high satisfaction levels. Whether you're a new homeowner making compromises, someone improving your current living space, or simply looking for a cost-effective way to increase your home's value and appeal, consider these top projects for your next home improvement plan.