New Report Pegs Added Home Value at 117% of Cost for Homeowners Who Add Attic Insulation
ALEXANDRIA, VA — JANUARY 13, 2016 — Remodeling Magazine has released its “2016 Cost vs. Value Report,” which compares the average costs for 30 popular home remodeling projects with the value the homeowners could re-coup at resale in 100 U.S. markets on a national and regional level. For the first time, a fiberglass insulation attic upgrade was included among the list of 30 home renovation projects evaluated and proved to add the greatest value to the home at 117% of the cost of the project, according to Hanley Wood, publisher of Remodeling Magazine.
The report estimated the average cost for this upgrade is $1,268 nationwide. Assessment on the potential return gained by the homeowner at resale was provided by real estate professionals responding to the annual survey. Realtors estimated that one year after a fiberglass attic insulation upgrade, the project would increase the value of the home by $1,482. The research specifically estimated the cost of adding blown-in loose fill fiberglass insulation into a 35×30 attic to reach an R-30 insulation value.
Among the renovations covered in Cost Vs. Value, adding fiberglass insulation was the only project that had an average national return of more than 100 percent. By comparison, the average cost and average return at resale for the 30 projects in this year’s report amounted to a 64.4 percent return if the home was sold within one year of completing the renovation.
“This is great news for homeowners, who know that insulation improves the comfort and energy efficiency of their home, but may not know that it adds value as well,” said Curt Rich, President and CEO of the North American Insulation Manufacturers Association. (NAIMA).
The Cost Vs. Value Report comes on the heels of another remodeling report, released last month by the National Association of the Remodeling Industry and the National Association of Realtors. The Remodeling Impact Report looked at the typical cost of 20 remodeling projects as estimated by NARI, while NAR members determined the value the project would add to the home. That report ranked insulation third in cost-recovery for the various home improvement projects studied – with 95 percent cost recovery.
A 2015 Demand Institute study of the top unfulfilled housing needs and desires of consumers found that energy efficiency was the No.1 unmet housing concern and only 35 percent of consumers believe their home is energy efficient. “Adding air sealing and insulation is among the easiest, most cost-effective ways to increase a home’s energy efficiency,” Rich said. “The bonus is that a fiber glass attic insulation upgrade increases its value as well.”
NAIMA is the association for North American manufacturers of fiber glass, rock wool, and slag wool insulation products. Its role is to promote energy efficiency and environmental preservation through the use of fiber glass, rock wool, and slag wool insulation, and to encourage the safe production and use of these materials. Our website is insulationinstitute.org.