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profitability and fields of home renovation

wrkrwood's picture


Has anyone ever come across a document/research that lists that best areas of profit in construction. i.e. kitchen remodeling vs. landscaping, painting to tile. been searching for some sort of research regarding this and can't find it.


Profit? (post #204916, reply #1 of 12)

For those doing it and being paid for it, or the return on investment to the homowner?

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


In response to your PM. (post #204916, reply #2 of 12)

What I meant was as to the homowner...........

What is the best area for return on investment.  I.O W.'s -you spend 40,000 on a kitchen, can you add that to the value of your house-

maybe, but you won't see it probably at time of sale. 


Remodeling mag has for years listed several areas of home improvement and their avg. costs along with the percentage of return on that amount invested.  Interesting the way it moves up/down over time.  Over the years you can see the percentage float to different levels.


But with our correspondence I see you meant an area of renovations/repair that would have the biggest profit margin.

Honestly, what might work where you are would most likely not in other areas of the country.  The remodeling industry is treading water.  What with the influx of all those carpenters laid off new housing joining the ranks, battling those small/medium companies that have been around along time..............

But, one thing seems to keep on chugging.  Roofing, window replacement and to a certain extent-decks.

However, if you settle yourself into one thing-will you be able to secure a repeating market or will you be at the mercy of ebb and flow. 

Me?  I'm still busy as a general remodeler-loving kitchens, hating baths, but not turning down rot repair or any whim from my cadre of repeat customers or their referrals.

I think I'd be done if I lived off the yellow pages or my card hanging on the board at home depot.

Best of luck.

A Great Place for Information, Comraderie, and a Sucker Punch.

Remodeling Contractor just outside the Glass City.


Ask a Realtor (post #204916, reply #3 of 12)

Any good realtor can tell you this information. Kitchen and Bath remodeling is big, I think it also depends

on the area and the market.

Good Luck


Profitability of Renovation (post #204916, reply #4 of 12)

New York City, San Antonio Tx, Orlando Florida, San Diego California, Boise Idaho.... We are talking about a difference in cost of job and profit margins of a likely 300%.

There is no such survey or data. Where taxes are higher most jobs are off the books and even government information will be skewed to unrealistic numbers.

Ask and I am sure these guys will give you a better fix on the numbers you want.

We build pergolas for upwards of 75$ a square foot... and Decks upwards of $100/foot. I did 300' of fence for $400,000 once.

On the flip side standard good neighbour fences go for $15 a foot in Atlanta, and if you want other space cadet pricing you can check craigslist or kajijijijijijijiji

L for the Art of it! Decks Blog

300' of fence for $400,000 (post #204916, reply #6 of 12)

300' of fence for $400,000 once.

please describe that $1300 per foot fence !  At Sing Sing, Joliet, or San Quentin ??

He probably worked for (post #204916, reply #7 of 12)

He probably worked for Haliburton, in Iraq.

...and take any generic poll (post #204916, reply #5 of 12)

...and take any generic poll with a grain of salt.  Every market is different and some niches are very different.  For instance in an upscale older neighborhood with small footprints, old foundations and tight lots there are a lot of additions and full basements going in - these two things are every bit as valuable as new kitchens and bathrooms, often more so.

Another case is an upscale vacation spot where an awesome new deck can be more valuable than a remodeled kitchen or bath.  In the historic distric I spoke of almost no new raised decks are going in -- it just doesn't fit.



If I could edit my location it would say I'm now in Reno :-)

Profitability (post #204916, reply #8 of 12)

That's because there is none. It boils down to what you do best. I know guys in my area who are very good at bathroom and kitchen renovations but couldn't make money doing decks, additions, or whatever. I do very well as a high end general contractor but can't make a dime doing little jobs like bathrooms, etc. A friend does small renovation work and can run circles around me but has been lost in any project over 50,000. My advice is to do what you do best and focus on customer service and you will always make a profit.


Good luck

I don't find any value in  (post #204916, reply #9 of 12)

I don't find any value in  broad generalizations about what's the best bang for the buck - it depends on the house and market.

A modern house with modern kitchen doesn't need another kitchen just like the one it has, but any 100 year old house will benefit a great deal from one! 

For me upper and upper-middle income historic houses paid the best :)

If I could edit my location it would say I'm now in Reno :-)

Remodeling Cost vs. Value report 2011-2012 (post #204916, reply #10 of 12)

This is the report Calvin metioned. It's made by surveying real estate agents and what they see as payback for common remodeling projects. It's not perfect, but it's probably the best nationwide data you'll find.


Here's more on how the data is compiled.

Garbage in garbage (post #204916, reply #11 of 12)

Garbage in garbage out.....the numbers really don't mean all that much for an individual remodeler - or even for a realestate professional - value is based on comps, not once have I ever heard of an appraiser valuing any remodeling project accept as the house as a whole relates to those around it that have sold.

Attic bedrooms are top of the list?  That's because the only ones that make sense have a large attic space in the first place - for the average house it doesn't make sense.

Honestly I'm not sure what remodelers use that information for?

If I could edit my location it would say I'm now in Reno :-)