When it comes to home improvements, homeowners often grapple with the question: "Should I invest in building a deck or remodeling my kitchen?" Both projects have their merits, but which one offers a better return on investment (ROI) when it’s time to sell your house? Let's dive into the numbers and perspectives.
ROI Overview
Data Point 1: Cost vs. Value Report 2023
According to the 2023 Cost vs. Value Report, the average ROI for a wood deck addition is about 65% to 75%, while a composite deck addition typically offers an ROI of around 60% to 70%. On the other hand, a minor kitchen remodel has an average ROI of about 70% to 80%, whereas a major kitchen remodel tends to have a lower ROI of approximately 55% to 65%.
Wood Deck Addition:
Average Cost: $15,000
Average ROI: 65% - 75%
Average Value Added: $9,750 - $11,250
Composite Deck Addition:
Average Cost: $20,000
Average ROI: 60% - 70%
Average Value Added: $12,000 - $14,000
Minor Kitchen Remodel:
Average Cost: $25,000
Average ROI: 70% - 80%
Average Value Added: $17,500 - $20,000
Major Kitchen Remodel:
Average Cost: $70,000
Average ROI: 55% - 65%
Average Value Added: $38,500 - $45,500
Conflicting Opinions
Opinion 1: Deck Addition as a Strong ROI Contender
Proponents of adding a deck argue that it can significantly enhance outdoor living space, a feature increasingly coveted by homebuyers, especially post-pandemic. A well-designed deck can serve as an extension of your living area, perfect for entertaining and relaxation, which can make your home more attractive and marketable. Plus, compared to a kitchen remodel, a deck addition is often less disruptive to your daily life and can be completed more quickly.
Opinion 2: Kitchen Remodel as the King of ROI
On the flip side, many real estate experts maintain that the kitchen is the heart of the home. A modern, updated kitchen can make a powerful impression on potential buyers, often serving as a deciding factor in their purchasing decision. While a major kitchen remodel can be costly and yield a lower ROI percentage-wise, a minor kitchen remodel strikes a balance by updating critical elements like countertops, cabinets, and appliances, thus offering a higher return.
Factors to Consider
Market Trends:
In some markets, outdoor living spaces are in high demand, while in others, an updated kitchen is more desirable. Research your local real estate trends to make an informed decision.
Budget and Scope:
A deck addition typically costs less than a kitchen remodel, so if budget constraints are a concern, a deck might be the better choice.
Personal Enjoyment:
Consider how much you and your family will enjoy the improvement. A deck might offer immediate enjoyment with outdoor activities, while a kitchen remodel can enhance daily living and cooking experiences.
Let's face it—both projects have their perks.
A new deck means more summer barbecues and fewer reasons for Uncle Joe to track mud into your house. On the other hand, a revamped kitchen might inspire you to cook more, or at least make your takeout look gourmet on your new countertops. Either way, improving your home is a win-win, and who knows? It might just make those house guests a bit more bearable.
Happy renovating!
Jacobe Palmiter @JCS Construction Services
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