2002 Cost vs. Value Report

Kitchens "are the big thing that sells homes," says Sacramento real estate agent Tamara Dawn, drawing on 23 years of experience selling new and existing homes. This year's study offers two gut-and-replace kitchen remodels: a mid-range price project at $43,213 and an upscale kitchen -- same size, different components -- at $70,368.

Real estate agents and appraisers see the return value of the upscale project (80% vs. 67% for the mid-range price point) as greater. That's because, as Dawn points out, upscale features are now almost a requirement in upper-tier homes. The price difference in specing granite vs. other types of materials for countertops, for example, may be $5,000, Dawn points out, but "it can make a $20,000 difference in the asking price, because of the perception about the quality of the home."

Project description

Mid-range: Update an outmoded 200-square-foot kitchen with design and installation of a functional layout of new cabinets, laminate countertops, standard double-tub stainless-steel sink with standard single-lever faucet. Include energy efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposer, and custom lighting. Add new resilient floor. Finish with painted walls, trim, and ceiling. Include 30 linear feet of semi-custom grade wood cabinets, including a 3-by-5-foot island.

Mid-range
Market Job Cost Resale Value Cost Recouped
National Average $43,213 $28,760 67%
Atlanta 41,201 36,220 88
Boston 45,931 43,292 94
Buffalo, N.Y. 42,398 21,258 50
Chicago 47,348 40,486 86
Cincinnati 42,505 23,867 56
Cleveland 44,546 30,418 68
Columbus, Ohio 42,364 16,618 39
Dallas 40,472 21,250 53
Denver 40,943 19,157 47
Detroit 44,499 22,938 52
Houston 41,547 26,800 65
Indianapolis 42,564 18,000 42
Kansas City 42,528 22,250 52
Los Angeles metro 45,746 45,903 100
Los Angeles 46,175 60,109 130
Orange Cty, Calif. 45,317 31,696 70
Miami 40,261 23,815 59
Milwaukee 44,516 30,484 68
Minneapolis 47,561 36,083 76
New Orleans 39,609 27,315 69
New York metro 45,105 40,345 89
Passaic, N.J. 46,250 31,450 68
Nassau-Suffolk, N.Y. 45,785 38,657 84
Fairfield-New Haven, Conn. 43,280 50,928 118
Norfolk, Va. 38,008 22,200 58
Orlando, Fla. 39,907 16,364 41
Philadelphia 45,111 41,022 91
Phoenix 41,715 18,500 44
Pittsburgh 43,594 23,700 54
Portland, Ore. 43,237 27,667 64
Providence, R.I. 43,759 24,400 56
Sacramento, Calif. 45,625 24,200 53
Salt Lake City 39,930 18,100 45
St. Louis 44,338 28,916 65
San Antonio 40,366 18,300 45
San Diego 44,971 31,250 69
San Francisco metro 48,495 46,806 97
San Francisco 48,495 44,600 92
Oakland, Calif. 48,495 49,012 101
Seattle 45,445 34,600 76
Tampa, Fla. 38,794 23,400 60
Washington metro 40,415 26,692 66
Washington, D.C. 42,118 46,667 111
Baltimore 40,374 17,408 43
Richmond, Va. 38,754 16,000 41

Upscale: Update an outmoded 200-square-foot kitchen with 30 linear feet of custom cherry cabinets, granite countertops, and imported ceramic tile backsplash. Include built-in refrigerator, cooktop, 36-inch commercial grade range and vent hood, built-in warming drawer, trash compactor, built-in combination microwave and convection oven, high-end undermount sink and designer faucets, built-in water filtration system. Add new general and task lighting including low-voltage under-cabinet lights. Install cork flooring, cherry trim.

Upscale
Market Job Cost Resale Value Cost Recouped
National Average $70,368 $56,137 80%
Atlanta 68,181 66,818 98
Boston 73,075 84,676 116
Buffalo, N.Y. 69,449 43,420 63
Chicago 74,443 58,501 79
Cincinnati 69,701 44,960 65
Cleveland 71,715 45,840 64
Columbus, Ohio 69,675 38,218 55
Dallas 67,696 49,250 73
Denver 67,904 41,893 62
Detroit 71,837 42,633 59
Houston 68,722 46,000 67
Indianapolis 69,760 42,000 60
Kansas City 69,629 40,413 58
Los Angeles metro 73,157 86,348 118
Los Angeles 73,402 120,876 165
Orange Cty, Calif. 72,911 51,820 71
Miami 67,467 47,500 70
Milwaukee 71,618 55,638 78
Minneapolis 74,705 62,550 84
New Orleans 66,660 45,749 69
New York metro 72,179 68,549 95
Passaic, N.J. 73,207 51,500 70
Nassau-Suffolk, N.Y. 72,736 69,647 96
Fairfield-New Haven, Conn. 70,593 84,500 120
Norfolk, Va. 65,082 45,000 69
Orlando, Fla. 67,001 43,645 65
Philadelphia 72,272 69,454 96
Phoenix 68,692 38,000 55
Pittsburgh 70,707 47,500 67
Portland, Ore. 69,954 48,333 69
Providence, R.I. 71,154 47,700 67
Sacramento, Calif. 73,340 62,000 85
Salt Lake City 67,160 33,600 50
St. Louis 71,468 50,042 70
San Antonio 67,687 50,551 75
San Diego 72,333 60,750 84
San Francisco metro 75,856 91,174 120
San Francisco 75,856 91,400 120
Oakland, Calif. 75,856 90,948 120
Seattle 72,693 68,585 94
Tampa, Fla. 66,222 47,000 71
Washington metro 67,503 57,574 85
Washington, D.C. 69,139 93,333 135
Baltimore 67,569 44,640 66
Richmond, Va. 65,800 34,750 53