Making Places

Bay Area Construction Costs

Hanley Wood, the publishers of Remodeling Magazine have come out with their annual cost vs. value report for 2006.

No surprise, the cost of construction on the west coast is more expensive than the national average, and construction costs in the Bay Area are some of the highest in the country. Remodeling costs in the Bay area run 20% to 25% more for the same projects executed elsewhere in the country.

But, the return on your investment in construction costs is also higher in the Bay area. For typical remodeling projects, the nation average is that you can expect to recoup 60% to 80% of your investment in a higher resale value for your home if you sell within 24 months of completing the remodel. In the Bay Area, you can expect to recoup 80% to 128% of your investment! That's good value!

The single best investment you can make is simply to replace old windows with new double paned wood windows. An investment of $13000 in new wood windows will result in an increase of value of $17000. That is 128% return on your investment. Not only that but you'll save on your power bills, too.

Remodeling your Kitchen and bathrooms also remain very good investments in the Bay Area, with expected returns of 104% to 126% depending on the extent of the remodeling and the quality of the materials used.

These numbers suggest that making improvements to your home are still a good move financially, even in the current real estate market. And, even if you don't plan on moving withing the next 3 years, in my opinion, it's always a good investment in your quality of life.

posted by locicero-arch @ 3:05 PM