Home Improvement

The trend that, traditionally, returns on the functional, like kitchens and bathrooms, have provided better returns than on the personal continued in 2006. Nationwide, major kitchen remodels cost $54,241 and added $43,603 to resale value, recouping 80.4% of total cost.

The previous year, an average major kitchen remodeling cost $43,862 and returned 91% on the investment. Midrange kitchen remodels averaged total outlay of $12,918, earning back around 85%. This marked an increase from an average cost of $10,499 and return of $10,727 in 2005.

The average midrange bathroom remodeling job cost $12,918 in 2006 and recouped 84.9% upon resale. An upscale bathroom remodel returned only 77.4% on average.

Alfano stressed that these declines are merely a return to historical levels after three consecutive years of record-setting sales for existing homes and remodeling activity. "With a few notable exceptions," he said, "the remodelers I have talked with say remodeling has hardly skipped a beat."

Not all contractors are so optimistic, however.

"I wish we had a crystal ball to see when things will turn the corner," said Anna M. Mavrakis of Mavrakis Construction in Canton, Ohio. "Work has been very slow in our area and I think that many people are putting off home improvement work that may not be considered 'essential,' such as a new deck versus say repairing or updating a bathroom."