Remodeling Impact Report Reveals Vinyl Windows Outrank Other ProjectsNovember 8th, 2019 by Kyra Thompson
Remodelers’ confidence in consumer interest has held steady over the last five years and there are reports of increased activities around areas impacted by recent natural disasters. Those are two, key takeaways from the National Association of Home Builders’ (NAHB) Remodeling Market Index for third-quarter 2019. But how much of that interest is steered toward fenestration and what sort of return on investment (ROI) do doors and windows provide? That’s where the 2019 Remodeling Impact Report (RIR) comes in.
Released October 3, by the National Association of Realtors (NAR), RIR analyzed the cost and value recovered for several types of remodeling projects, including replacement doors and windows.
Vinyl Window Replacement
Replacement vinyl windows were the second most appealing remodeling project of all the exterior categories, as well as the most valuable ROI, at a 71% value return with an estimated cost at $22,500 and the cost recovered at $16,000. There are indications that those returns might be slightly diminished over last year’s figures, however, as a separate Cost Vs. Value Report shows the ROI for vinyl window replacement down slightly from 2018 estimates.
NAR’s report shows that 47% of homeowners say the reason for replacement included improving energy efficiency, while 37% say it was to upgrade worn-out surfaces, finishes and materials. Among Realtors, 12% suggest sellers complete vinyl window replacement projects before putting a home on the market, making it the most highly suggested door or window remodeling project.
Wood Window Replacement
Wood replacement window projects were less appealing to buyers and returned slightly lower values. The average cost was $35,000 and the estimated cost recovered was $20,000 for a 57% cost recovered value. Similar to vinyl window replacement, 47% of homeowners say their reasons for replacement included improving energy efficiency, while 37% say it was to upgrade worn-out surfaces, finishes and materials. Only 1% of sellers say that wood window replacement helped sell their homes in comparison to the 4% of sellers that said vinyl window replacements helped to sell their homes. The 2019 Cost Vs. Value Report showed that the value of wood window projects was up at 70.8% recouped on average from the 2018 rate of 69.5%.
Fiberglass Door Replacement
The average cost for new fiberglass doors was $2,700 and the estimated cost recovered was $2,000 for a value of 74% of costs recovered, according to RIR. Forty-two percent say the reason for the project was to enhance energy efficiency, while 29% say it was to upgrade worn-out surfaces, finishes and materials. Four percent of Realtors recommend sellers get new fiberglass doors, while no respondents said the project helped them sell a home. The 2019 Cost Vs. Value Report showed cost recouped was 71.9%, marking an increase from 2018 when it was 67.6%.
Steel Door Replacement
New steel door projects were the least appealing of all exterior projects observed in the RIR, while the estimated cost recovered value was 75%. Costs recovered from steel door projects estimated at $2,000 came in at $1,500. Costs recouped from steel doors were down this year from 91.3% in 2018 to 74.9%, according to the Cost Vs. Value Report. Forty-two percent say the reason for the project was to enhance energy efficiency, while 29% say it was to upgrade worn-out surfaces, finishes and materials. A mere 1% of sellers say those projects helped to sell their homes, while 4% of Realtors recommend new steel doors before selling.
RIR estimated costs for remodeling projects are based on a 2019 survey conducted in March and July by members of the National Association of the Remodeling Industry (NARI), while the value recovered estimates were based on several NAR surveys conducted in July 2019.