Energy-efficient, functional remodeling projects proved most profitable for Texas homeowners in 2015

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Texas Association of REALTORS® releases the Texas Remodel Valuation Report

CONTACT: Danielle Urban - Pierpont Communications, 512-448-4950

Apr 01 2016 — Austin

The most popular Texas home remodeling projects in 2015 were those that increased a home’s sustainability, according to the Texas Remodel Valuation Report released today by the Texas Association of REALTORS®. The report analyzes the project recoup costs in 2015 for 30 different remodeling projects nationwide, in the West South Central U.S., and in Austin, Dallas, El Paso, Houston, McAllen, and San Antonio.

Leslie Rouda Smith, chairman of the Texas Association of REALTORS®, commented, “A growing number of Texas homebuyers are opting to purchase lower-priced homes that can be remodeled to suit their exact needs or make the home more energy efficient. More and more Texas homesellers, too, are seeing the value in investing in a few strategically chosen projects before listing to sell their home faster and potentially at a higher price.”

The top home remodeling projects in 2015 were those that increased the functionality and sustainability of homes, by improving a home’s curb appeal or energy efficiency. Fiberglass attic insulation ranked among the top five projects in most Texas markets, recouping up to 163.4% of project costs. Manufactured stone veneer projects were also popular across Texas, recouping up to 157.9% of project costs.

Overall, remodeling projects continued to be profitable, with a few projects in all markets recouping 100% or more of project costs. Home remodeling projects in Houston, McAllen, and El Paso showed the highest year-over-year growth in profitability in 2015, while a majority of remodeling projects in Austin, San Antonio, and Dallas declined slightly in profitability from 2014 to 2015.

Unlike in previous reports, remodeling projects that maximized a home’s existing square footage were among the least profitable projects in 2015. Bathroom, deck, and master suite additions consistently ranked among the least in markets nationally and in Texas, recouping as little as 25.5% of project costs. In general, upscale or luxury projects continue to be less profitable than smaller or mid-level projects.

Smith concluded, “There are many factors that go into whether a remodeling project is a good fit for a home in addition to impact on resale value, such as the homeowner’s expected tenure in the house and, for energy-efficient upgrades, how long it will take the project to pay for itself in cost savings. Texas REALTORS® can help homeowners, buyers, and sellers determine which remodeling projects are the best fits for the short term as well as further down the road.”

About the Texas Remodel Valuation Report

The Texas Remodel Valuation Report is based on survey data from the Cost vs. Value Report by the National Association of REALTORS® and Remodeling magazine. The Texas Association of REALTORS® distributes insights about the Texas housing market each month, including quarterly market statistics, trends among homebuyers and sellers, luxury home sales, international trends and more.

About the Texas Association of REALTORS®

With more than 110,000 members, the Texas Association of REALTORS® is a professional membership organization that represents all aspects of real estate in Texas. We advocate on behalf of Texas REALTORS® and private-property owners to keep homeownership affordable, protect private-property rights, and promote public policies that benefit homeowners. Visit to learn more.

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