2002 Cost vs. Value Report

People usually add on to stay put, points out Kerry Butler, owner of Butler Construction Services, a full-service remodeling company in Kelso, Wash. "They like the neighborhood, the school district. They've looked at newer, larger homes and decided to invest in the home they have and stay in the neighborhood."

Still, if they decide to sell, the extra space -- a six-bedroom house where most homes have four -- appeals to buyers with large families or those planning to convert that extra room to something else, say a home office. "It's the bedrooms and bathroom addition where people get the most bang for their buck," says Todd Perry, Leading Edge Homes, Wellington, Fla., whose company specializes in additions.

Real estate agents agree, rating this project a 94% recoup overall, with the recoup on additions in areas such as Washington, D.C. (177%), and San Francisco (126%) returning even more.

Project description

Add a 24-by-16-foot two-story wing over a crawl space with a first-floor family room and a second-floor bedroom with full bath. Include 11 3-by-5-foot double-hung insulated windows; carpeted floors; painted drywall on walls and ceiling; and painted trim. In the family room, include a prefabricated gas fireplace and an atrium-style exterior door. In the 5-by-8-foot bathroom, include a one-piece fiberglass tub/shower unit; standard white toilet; wood vanity with ceramic tile countertop; resilient vinyl flooring; and mirrored medicine cabinet with built-in light strip; papered walls; and painted trim. Add new heating and cooling system to handle addition.

Market Job Cost Resale Value Cost Recouped
National Average $69,857 $65,524 94%
Atlanta 64,487 62,840 97
Boston 79,520 79,765 100
Buffalo, N.Y. 68,729 59,320 86
Chicago 81,448 90,436 111
Cincinnati 69,708 55,701 80
Cleveland 74,298 61,360 83
Columbus, Ohio 67,926 30,689 45
Dallas 62,290 43,073 69
Denver 65,190 49,980 77
Detroit 72,823 59,949 82
Houston 65,197 45,400 70
Indianapolis 68,316 56,000 82
Kansas City 68,746 48,738 71
Los Angeles metro 77,160 100,301 130
Los Angeles 78,194 120,121 154
Orange Cty, Calif. 76,125 80,480 106
Miami 61,202 58,750 96
Milwaukee 74,562 66,943 90
Minneapolis 84,529 87,258 103
New Orleans 60,196 45,154 75
New York metro 76,084 89,298 117
Passaic, N.J. 77,514 60,000 77
Nassau-Suffolk, N.Y. 80,045 94,009 117
Fairfield-New Haven, Conn. 70,694 113,885 161
Norfolk, Va. 40,294 36,250 90
Orlando, Fla. 61,129 42,537 70
Philadelphia 75,755 81,878 108
Phoenix 66,315 40,000 60
Pittsburgh 70,755 54,250 77
Portland, Ore. 71,710 60,000 84
Providence, R.I. 71,546 57,000 80
Sacramento, Calif. 76,705 73,750 96
Salt Lake City 61,562 51,000 83
St. Louis 74,494 55,167 74
San Antonio 60,913 54,111 89
San Diego 74,885 76,250 102
San Francisco metro 84,310 106,427 126
San Francisco 84,310 119,100 141
Oakland, Calif. 84,310 93,754 111
Seattle 75,355 68,817 91
Tampa, Fla. 58,165 45,750 79
Washington metro 61,403 69,007 112
Washington, D.C. 65,660 116,667 177
Baltimore 61,928 46,353 75
Richmond, Va. 56,622 44,000 78