Since the initial stay-at-home orders were sparked by COVID-19, home improvement and remodeling projects have become increasingly popular. On average, homeowners spend $2,995 per project, according to a report.
HomeAdvisor recently analyzed real estate listings in 10 of the hottest housing markets in 2021 to determine the top five cities that saw the highest return on investment (ROI) from home renovations.
1. Dallas/Fort Worth, Texas
On average, non-renovated homes in the Dallas/Fort Worth area are valued at $203 per square foot, while the value of renovated homes is $249 per square foot. That’s nearly a 23% increase in value or $46 per square foot.
2. Miami, Fla.
While not as booming as Dallas/Fort Worth, Miami is another real estate hotspot. On average, renovated homes are valued at $362 per square foot. Meanwhile, non-renovated homes sit at $300 per square foot, a 21% increase.
3. Houston, Texas
For an average-sized house in Houston, homeowners are looking at a value of $142 per square foot before any renovations. After renovations, that number rises to $167 for an increase of 18%. That extra $26 per square foot may seem small, but on average, that leads to an increase of over $57,000.
4. Tampa, Fla.
In Tampa, renovations drive nearly a 15% increase in value. Average-sized, non-renovated homes list for around $495,705. Meanwhile, renovated homes sell for about $568,800, increasing over $73,000. Per square foot, that equates to an extra $32, as square footage pricing rises from $219 to $252.
5. Nashville, Tenn.
In Nashville, renovations lead to a 14% increase in home value, from $235 per square foot to $269.