A Creative Approach to Building an Addition Can Save Homeowners Both Money and Time
WASHINGTON (March 17, 2023) – Most REALTORS (92%) suggest that sellers improve the curb appeal of their home before listing it for sale. Also, the largest shares of REALTORS recommended owners complete landscaping-related features before putting a home on the market, and those were among the top projects for which landscape professionals saw increased demand over the last year. These and other findings come according to a report released today by the National Association of REALTORS® and the National Association of Landscape Professionals.
The 2023 Remodeling Impact Report: Outdoor Features examines why homeowners complete outdoor remodeling projects, the value of undertaking these enhancements and homeowners’ increased happiness after completing an upgrade. Specifically, the report covers the following:
“The COVID-19 pandemic changed the way Americans use their homes for daily living, relaxation and entertainment,” said Dr. Jessica Lautz, NAR deputy chief economist and vice president of research. “Homeowners have embraced their outdoor spaces — transforming them into oases with pools, patios, plants and greenery. These outdoor features are embraced by the homeowner and can also attract buyers if the owner wants to sell.”
The 11 outdoor features in the report include: fire feature ($9,000), in-ground pool addition ($90,000), irrigation system installation ($6,000), landscape lighting ($6,800), landscape maintenance ($4,800), new patio ($10,500), new wood deck ($16,900), outdoor kitchen ($15,000), overall landscape upgrade ($9,000), tree care ($2,875) and standard lawn care service ($415).
Ranked on a scale of 1-10, the report found that consumers rated all 11 outdoor projects highly, with Joy Scores at 9 or above. Among the features, the highest Joy Scores were for an in-ground pool addition (10), landscape lighting (10) and a new patio (9.9). Slightly lower Joy Scores were provided for an outdoor kitchen (9), tree care (9.3), standard lawn care service (9.4) and an irrigation system installation (9.4).
High Joy Scores did not necessarily correspond with REALTORS’ estimate for high cost recovery. Interestingly, the least expensive project — standard lawn care service — had the highest cost recovery (217%), followed by landscape maintenance (104%), an overall landscape upgrade (100%) and an outdoor kitchen (100%). In comparison, the lowest cost recovery was for an in-ground pool (56%) — which had the highest Joy Score — followed by a fire feature (56%) and landscape lighting (59%).
In line with their majority recommendation to improve curb appeal, the largest shares of REALTORS that recommended completing an outdoor project prior to selling a home were for landscaping-related projects, including landscape maintenance (74%), standard lawn care service (53%) and tree care (44%). The shares of REALTOR® recommendations were the lowest for an in-ground pool addition (1%), outdoor kitchen (1%) and an irrigation system installation (2%).
The outdoor projects for which landscape professionals saw the most increased demand included an overall landscape upgrade (61%), landscape maintenance (58%) and a new patio (55%). Conversely, they saw the least increased demand for a new wood deck (15%), an in-ground pool addition (25%) and tree care (29%).
“It’s no surprise that nearly all REALTORS and most homeowners place a high value on the curb appeal of a well-maintained yard,” said Britt Wood, NALP CEO. “Healthy outdoor living and green spaces help the environment, increase home values, make communities more desirable, and improve people’s mental and physical health.”
For the first time, the report looked at outdoor remodeling demand during the COVID-19 pandemic. Among landscape professionals, most (92%) found increased demand for contracting outdoor features during the pandemic. Further, 79% cited that outdoor project scopes increased in size from before the pandemic.
REALTORS cited the highest increase in pandemic demand for an in-ground pool addition, landscape maintenance and a new patio (all 17%). On the contrary, they saw the smallest amount of increased pandemic demand for an irrigation system installation (2%), a fire feature (8%) and landscape lighting (8%).
View the report online at nar.realtor/research-and-statistics/research-reports/remodeling-impact-report-outdoor-features.
In February 2023, the homeownership site HouseLogic.com surveyed consumers about the last remodeling project they undertook. Additionally, 48,342 NAR members were surveyed to ask if they had completed remodeling projects. A total of 2,620 respondents took the survey. The Joy Score was calculated by combining the share who were happy and those who were satisfied when seeing their completed project and dividing the share by 10 to create a ranking between 1 and 10. Higher Joy Scores indicate greater joy from the project.
In January 2023, NALP emailed a cost survey to its 1,670 member companies, and it received 160 responses. The survey had an adjusted response rate of 9.6%.
In February 2023, NAR emailed a remodeling project survey to a random sample of 42,164 members, and it received 1,891 responses. The survey had an adjusted response rate of 4.5% (see report for full methodology).
The National Association of REALTORS is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term REALTOR is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics.
The National Association of Landscape Professionals represents an industry of more than 1 million landscape, lawn care, irrigation, and tree care professionals who design, create and maintain our nation’s green spaces, which are vital to our planet’s health.
By: India Stoughton I Mansions Global I March 2023