Average remodeling costs dropped again for the third year in a row, although more slowly this year. Nationwide costs decreased 6.9% in 2009, 2.3% in 2010 and only 1.9% in 2011. Average project cost in the Minneapolis-St. Paul area for 2011 was $44,840.
However, overall return on investment dropped more due to continued volatility in housing prices. From a peak return of 86.7% in 20o5 it has fallen to a national average of 57.7%… and an even lower 49.5% in our Minneapolis-St. Paul region.
Repair and replacement projects took precedence over additions and remodeling, with siding and window replacements ranking in the top tier of return on investment. However, even the project with the highest return in the Twin Cities this year, upscale fiber cement siding replacement, still only recouped 66.7% of the cost at time of sale.
The attic bedroom project jumped up to the number 2 slot this year… with deck additions, two-story addition and minor kitchen remodel rounding out the top ten.
See this year's results below with average job cost and estimated % of cost recouped at time of sale (ROI), ranked by highest return on investment (ROI). Click here to see the complete report compiled annually by Remodeling magazine in cooperation with the National Association of Realtors, including national numbers and reports from past years going back to 2002.
MINNEAPOLIS-ST. PAUL Remodeling Cost vs Value 2011-2012
- UPSCALE siding replacement (fiber-cement) – $13,503 – 66.7%
- Attic bedroom – $50,006 – 59.9%
- Deck addition (wood) – $9,774 – 59.41%
- Siding replacement (vinyl) – $11,608 – 59.0%
- UPSCALE siding replacement (foam-backed vinyl) – $14,042 – 58.9%
- UPSCALE window replacement (vinyl) – $14,348 – 58.7%
- Window replacement (vinyl) – $11,386 – 55.9%
- Two-story addition – $172,913 – 55.7%
- Minor kitchen remodel – $19,598 – 55.5%
- Deck addition (composite) – $15,386 – 55.2%
- Major kitchen remodel – $57,300 – 55.0%
- Window replacement (wood) – $12,230 – 53.1%
- Basement remodel – $63,228 – 52.6%
- Garage door replacement – $1,520 – 52.6%
- UPSCALE garage door replacement – $3,017 – 51.8%
- Master suite addition – $106,234 – 50.8%
- Family room addition – $82,931 – 50.5%
- Entry door replacement – $1,242 – 49.9%
- UPSCALE window replacement – $18,948 – 49.5%
- Bathroom remodel – $16,470 – 49.1%
- UPSCALE major kitchen remodel – $110,541 – 48.7%
- Garage addition – $58,052 – 46.2%
- UPSCALE deck addition (composite) – $37,410 – 46.2%
- UPSCALE grand entrance – $7,516 – 45.6%
- UPSCALE bathroom remodel – $52,200 – 44.4%
- UPSCALE roof replacement – $37,181 – 43.3%
- UPSCALE master suite addition – $226,652 – 43.0%
- Roofing replacement – $20,894 – 42.8%
- Entry door replacement – $3,547 – 42.1%
- UPSCALE bathroom addition – $76,361 – 41.1%
- UPSCALE garage addition – $86,291 – 41.1%
- Bathroom addition – $40,064 – 39.0%
- Sunroom addition – $74,119 – 38.9%
- Back-up power generator – $14,933 – 36.5%
- Home office remodel – $27,952 – 32.4%
Sharlene Hensrud, RE/MAX Results – Email – HomesMSP.com
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