resale value: remodeling cost vs return

New England breakdown by renovation and addition types “For the first time in six years, the overall average cost-value ratio has improved, reaching 60.6%. Cost-recouped percentages were up for all 35 projects in the survey, a complete turnaround from the 2011–12 report, when percentages dropped in all but three projects, some precipitously. For the third year running, lower construction costs had a strong influence on the improved market picture, although stabilizing resale values also played an important role. Construction costs had risen rapidly between 2005 and 2007, then at a diminishing rate through the early part of the recent recession, while resale value remained fairly stable… When costs finally dropped in 2010–11, it was by a whopping 10.4%, but resale values slid even more (15.8%)… [and in 2013] another big drop (6.0%) in construction costs…
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