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The editors at Hanley Wood’s Remodeling magazine prepared an extensive analysis of remodeling cost versus value across the U.S.. It compares construction costs for 35 popular remodeling projects to the value those projects retain at resale. The full report is available at www.costvsvalue.com, but we have summarized the information that is pertinent to our region.
A minor kitchen remodel has an average job cost of $21, 678.00 (minor meaning more of a facelift – surface only). Its value at resale is $14,144 (65.2% recouped).
A major kitchen remodel has an average job cost of $58,149.00 (movement of walls in addition to facelift). Its value at resale is $36,373 (62.6% recouped).
An upscale major kitchen remodel has an average job cost of $113,027.00. Its value at resale is $61, 017 (54% recouped).
While these values have been on the decline since 2006, we hope to see the percentage of value recouped to rise within the next few years.
Builder Magazine Online has an insightful article on a trend in housing that is not to be overlooked: multigenerational housing. Defined roughly as two or more generations of adults living in the same home, multigenerational housing could apply to parents who’s adult child returns to live (boomerang) as well as aging parents/grandparents moving in with their adult children. The latter is becoming more common as the Boomer generation is reaching retirement.
Excerpt from Article:
“Multigenerational households are on the rise. While the phenomenon is typically cast as a product of hard economic times, the growing trend for multigenerational living situations is much broader than unemployed boomerang kids and has been growing since long before the Great Recession, according to a recent report put out by AARP as well as a separate study released last year by the Pew Research Center.
…The trend has been especially pronounced among the elderly. By 2008, one in five Americans aged 65 or older lived in a multigenerational household, compared to 17% in 1990, according to the Pew Center’s research. More than 2.7 million Americans aged 65 or older lived in a household in which one of their children was the head of household. By 2010, nearly 3.5 million American householders shared their home with a parent, according to the AARP report, “Multigenerational Households Are Increasing.”
The trend is likely to continue to grow simply “because there are so many Boomers,” says Nancy Thompson, senior media relations manager at AARP. “This trend started back before the recession, and Boomers are just reaching their retirement years. The first Boomers are just reaching 65 this year.”
Beyond the obvious physical needs of elderly parents who develop disabilities as they age, the Pew study also found more subtle health reasons for multigenerational living. Regardless of gender, race, age, income, and education level, “older adults who live alone are less healthy and they more often feel sad or depressed than their counterparts who live with a spouse or with others,” the study found.”