According to a report from Global Market Insights, it is estimated that people in the United States will spend over 1 trillion dollars on room additions and remodels from 2018 to 2024. That's a lot of room additions!
Why are room additions so popular? For two great reasons.
For one, adding a room to your home can increase its potential resale value substantially. And two, a room addition can transform your entire house and make you fall back in love with your home. But before you rush into a room reno or addition - you should find out which room add-ons may be the best investment. Not all remodeling projects are guaranteed to have a good return on investment when it comes to selling your home. Which means that you could end up spending thousands of dollars, that you can never recoup, on a home addition! This is why we want to share with you a list of some of the best and savviest additions so that you can go forward with your remodeling project with foresight and confidence.
Read on to learn more about these best bets.
Instead of a Room Addition, Create a Lux Outdoor Living Area
Okay, yes we did say that this list was about home additions in the form of rooms. But, if you are in two minds about building an extra room - but still want additional space, consider this. A lux outdoor living area.
Isn't this a little extravagant - and won't the return on investment be terrible? No. Because here's the thing. Outdoor living areas are taking off as a big-time trend, with large scale gravitation to indoor-outdoor spaces and living. Millennials are renowned for their drive to spend time outdoors, and an outdoor living area makes this easy.
The ROI figures for outdoor living areas are pretty good, and can even exceed 100%. Outdoor kitchens, for example, can net an ROI of between 100% and 200%. Simple decking is largely considered to be able to achieve an ROI of around 70%. And firepits that are attractively designed can earn an ROI of up to 150%. What's more, not only will you increase the value of your home - you will also be able to enjoy the pleasures of your luxurious and comfortable outdoor space yourself, and thereby catch a little sun, relax, socialize, and increase your outdoors time.
Much better than a few deck chairs laying around, right?
Head on Up
Adding-on to your home has a lot of benefits. Adding-on to your home in a big way - has even more benefits!
Bigger home additions tend to pay themselves off better than smaller additions. You can expect a 65% ROI on a double story home addition, but while this may not be as impressive as the possible ROIs of outdoor living spaces - it is still a good return for the space that you will gain.
Not all houses, however, have room for large additions outwards. If this is your case, then consider expanding upwards if your house is a single story. You can almost double your living area while taking nothing away from your yard.
This home addition is most suited to situations where you are in need of more space. Adding a second story to your existing home may save you from an expensive or unwanted move, and may be able to repay itself once it comes time to sell.
If you do not want to add a complete second story - and you have a suitable roof - you can also opt to add dormer windows to your existing roof. You can choose to either enjoy the spacious feeling and increased light levels that they bring, or insert a low floor/ceiling to incorporate an attic style room. Attic bedrooms are known to attract a high ROI, often as much as over 80%.
Don't Wonder About Walk-In Closets
If you have been dreaming of a walk-in closet for years, but couldn't justify the expense or the luxury - now may be your chance.
It turns out that walk-in closets are not only enviable but have a great return on investment. With some experts estimating an ROI of 100% and above.
This makes sense when you break it down. The cost of installing either a walk-in closet or custom closet organizer is likely to be a lot less than the costs of most other rooms additions.
But, the appeal of a walk-in or custom closet is powerful. Not only does it add a luxurious and upmarket feeling to the master bedroom, but it also serves a very practical purpose. It organizes clothes to perfection. Any home buyer looking at a custom sliding shoe rack is bound to feel the pull!
Add That Second Bathroom
There are many benefits to remodeling a bathroom. But, what about adding one in? An extra bathroom could be said to be a luxury. But for some, it could be a necessity.
If you have kids (especially teenagers... that style their hair for hours) having an extra bathroom is a must for your sanity and your schedule. Also, if you often have visitors from out of town who come and stay with you, it is really nice to have an extra bathroom for them.
If you fall into either or both of these camps, then you will be relieved to hear that a recent report by Remodeling.com, detailing the average ROI of remodels and additions in 2019, has some good news:
The average bathroom addition in 2019 has an ROI of over 60%.
Pimp out Your Basement
If you have a basement that is underutilized, this can be an ideal area to turn into a space that can act as an add-on to your living space.
Because actual building work will be minimal - converting your basement into a media room, man cave or other recreational room can be a cheaper alternative than adding on an extension to your home.
Do a Garage Conversion
Living in San Diego with mild weather, you could take advantage of this and turn your garage into an extra room, such as a bedroom or guest accommodation.
If parking your car outside indefinitely is not your idea of a good plan - then you can also choose to build a stand-alone garage in your yard as these have shown to have a better ROI than built on garages.
Consider a Utility Room
Utility rooms are becoming ever more popular in this time of open plan living. They serve to keep unsightly appliances and chores out of the main living area, safely behind a closed door, all organized together.
If you choose to add-in or extend your house to incorporate a utility room, you will reap the rewards everyday. Also, you may increase your home's value and saleability. A utility room is an attractive feature for many modern home buyers, and if you keep costs down you could recoup these later on.
If you extend to incorporate a utility room into your home, you will be likely to generate the best ROI, as this will up the square footage of your house.
Final Thought
Room additions are exciting! At the same time, they can also be expensive. By knowing which room additions attract the best ROI, you can make smart decisions when adding on to your home.
Now that you know about these top 7 rooms to add to your home, you are ready to take action on one that not only serves you - but also pays itself back.
If you are ready to take on that room addition, then check out our services.
