Texas Home Remodeling Projects Popular, Profitable in 2014

AUSTIN (Texas Association of Realtors) – Home remodeling projects in Texas’ major cities continued to be popular and profitable in 2014, according to the 2015 Texas Remodel Valuation Report released Wednesday by the Texas Association of Realtors.

The report analyzes the recoup costs in 2014 for more than 20 different remodeling projects nationwide, in the West South-Central U.S., and in Austin, Dallas, El Paso, Houston, McAllen and San Antonio.

The most profitable remodeling projects were those that boosted a home’s curb appeal. Steel entry door and garage door replacements ranked among the top five projects in most markets, recouping up to 113.2 percent and 107.6 percent of costs, respectively. Siding, roofing and window replacements — and a new project, stone veneer accents — also frequently yielded higher returns than costs.

Projects that maximized a home’s existing square footage and sustainability continued to be popular in 2014 but less so than the year before. Basement remodels recouped up to 98 percent of project costs, but attic bedroom additions, which were popular in 2013, were no longer a top project. Backup power generators, the most profitable project in the 2014 report, remained a top project in only two markets yet still recouped up to 129.2 percent of project costs.

Conversely, big-ticket projects and upscale additions were increasingly less profitable in 2014. The least profitable project in most markets — sunroom additions — recouped only between 29.3 percent and 51.8 percent of the total project cost, 10 percent less on average than in 2013.