Garage Doors feature well in the Hanley Wood Renovating Cost Vs. Value Report 2011 – 2012

“Three years of dropping construction costs have not been enough to counter the steeper drop in house prices. But the rate of decline is slowing, and some markets are showing signs of recovery.”

It remains true that even in markets where renovation activity is showing signs of recovery; homeowners are constrained by smaller budgets to work with. Elsewhere, existing home sales and cash-out mortgage refinances, traditional stimulants to renovation activity, have not yet rebounded, and homeowner uncertainty about job security, home equity, and the overall economy have stifled renovation investment.

On the Bright Side for the Door Industry

That said, there is evidence that the future for home renovation is bright. Hanley Wood’s recent “Housing 360” research on consumer attitudes towards housing shows that 42% of homeowners believe it is a good time to carry out some home renovation work. (Hanley Wood publishes Remodeling magazine.) That number increases to 56% when household income is $100,000-plus. The good news for the garage door industry is that Garage Door Replacements featured twice in the top 6 overall rankings for projects that best added value vs. the associated project costs.

The research also suggests that tight credit is not a major impediment – 80% of respondents say they pay for home renovation work with cash savings. And it confirms that 60% of homeowners aged 50 and older intend to stay in their homes through retirement, which will create demand for additional home improvement type projects. Again this was all very positive news for the garage door industry as the replacement cost for a garage door falls within the smallest cost category <$5,000 however is within the top quartile of projects that recoups the most costs.

Replacements still on top

The housing 360 research also shows that maintenance, repair, and replacement projects take precedence with homeowners. Cost vs. Value data confirmed this once again this year, as replacement projects continue to perform better in resale value than other types of renovation projects. The high value of replacements is partly due to their relatively low cost. These replacement projects immediately improve curb appeal, and the use of durable, low-maintenance replacement materials appeals to home buyers who increasingly are looking to reduce both the operational and maintenance costs of their homes.

Extracts taken from the Hanley Wood Remodeling Magazine Annual Report on the cost and return on investment for 35 most popular home renovation projects in the USA.