Every year, Remodeling Magazine puts together their Cost vs. Value Report, which details average return on investment (ROI) for 23 typical home renovation projects. The report surveys more than 6,000 realtors, showing them illustrations of a completed project and asking them to estimate the resale value added to the home.
We did a thorough breakdown of the 2019 Cost vs. Value Report a few years ago, with a more complete explanation of the report and the data. For this article, we’ll just focus on the findings for 2023.
In 2023, the report ranks a vinyl siding replacement project in 5th place (out of 23 projects) with a return on investment of 94.7%, with fiber cement siding replacement in sixth place at 88.5% return. These are extraordinary results that represent what we see every day - siding renovation projects make a massive difference in the desirability of a home.
One really interesting thing about this year’s report is how much the results have changed in a short period of time. Siding replacement projects have always ranked near the top of this report, but the difference compared to 2019 is significant.
This isn’t true for every project type, either. Here’s an in-depth look at 5 projects to give some context: (costs are averages from across the United States, and are in US Dollars):
Metal Roofing Replacement
2019: Average cost: $38,600 | Value added: $23,526 | Average Return: 60.9%
2023: Average cost: $47,414 | Value added: $23,163 | Average Return: 48.9%
Garage Door Replacement
2019: Average cost: $3,611 | Value added: $3,520 | Average Return: 97.5%
2023: Average cost: $4,302 | Value added: $4,418 | Average Return: 102.7%
Vinyl Window Replacement
2019: Average cost: $16,802 | Value added: $12,332 | Average Return: 73.4%
2023: Average cost: $20,091 | Value added: $13,766 | Average Return: 68.5%
Entry Door Replacement (Steel)
2019: Average cost: $1,826 | Value added: $1,368 | Average Return: 74.9%
2023: Average cost: $2,214 | Value added: $2,235 | Average Return: 100.9%
Siding Replacement (Vinyl & Fiber Cement Blended)
2019: Average cost: $16,036 | Value added: $12,199 | Average Return: 75.6%
2023: Average cost: $17,854 | Value added: $16,307 | Average Return: 91.3%
As we can clearly see from the data, prices across the industry have gone up a fair but since 2019, which isn’t going to surprise anyone. What’s really interesting is how siding projects are outperforming the average - costs are up, but the value added has increased so much that the ROI has gone up even further. If you’re interested in taking a look at the full report, you can check it out at www.costvsvalue.com.
Royal Building Products vinyl board and batten in Marine Blue, and Royal Portsmouth scalloped vinyl shakes in White. This is a much more visually appealing design than the standard Edmonton exterior!
So why is it that siding projects have seen such an R.O.I. boost after COVID?
Obviously, the COVID pandemic was an industry changing event. But it’s clear that the pandemic didn’t impact all renovation projects equally. Here are a few things that could be driving better ROI for siding projects:
Curb Appeal Is In Demand
It’s clear from the data that curb appeal improvements have performed better since 2019 than other projects. As the old saying goes, you only have one chance to make a first impression. Any project that makes the house look better from the street will improve a buyers mindset as they walk in the front door.
Houses are getting older
Most houses from the 60s, 70,s and 80s still have their original exteriors. These are mostly wood/metal siding, or rock stucco homes. These products have lasted a long time, but they are coming to the end of their lifespans. 40-60 years is a long time to be outside! At the same time, vinyl siding exteriors from the 1990s are reaching the end.
Since the Cost vs. Value Report measures the average value added of a project, if the original siding is that much older, the improvement will naturally be greater.
Exterior Designs are better
Homeowners now have a much wider range of proven products and design options to choose from. A siding replacement doesn’t have to just be about changing colours - siding profiles, accent options, and all manner of options are on the table!
Better awareness
Here’s something that we can give COVID credit for. When the pandemic first started in 2020, homeowners were less willing to bring contractors into their homes to renovate kitchens, bathrooms, and basements. Instead, more people hired contractors to improve their exteriors, since the installers would be outside and everyone could observe social distancing.
The result of that is much more siding activity in older neighbourhoods, which in turn is causing owners to start to think about the benefits of new siding for their own homes. As more people do their research, more people understand the value of a new exterior.
If you’re interested in a quote for your own siding project, just fill out the form below to set up your free, zero-pressure consultation!