Which Home Features Add the Most Value?
Single-family home values are determined by numerous factors, including location and the neighborhood in which they’re built. But a home’s physical features are among the most influential on home buyers.
The latest study from the American Housing Survey (AHS) revealed just how much influence key physical details on a home have — giving builders a peek inside the minds of their clients.
Home Size
Obviously, the size of the home plays a large role in determining how much it’s worth, especially as more buyers are using their homes as not only a living space but a working one, too.
Homes that are between 1,000 and 2,000 square feet are valued about 17% higher than those under 1,000 square feet. Homes between 2,000-3,000 square feet saw around a 30% increase in value, and the largest homes of 3,000 square feet or more skyrocketed to 55% more in value. (Data accounts for differences in region, age of structure and more.)
Bathrooms
The number of bathrooms in a home are extremely important in today’s market; the AHS survey shows they impact home value even more than bedrooms. Each full bathroom increases home value by approximately 32% compared to just 5% for an additional bedroom. A half-bathroom adds an estimated 15% value.
Age of Home
Buyers are placing a lot of stock in newer homes, likely because of their improvements in energy efficiency and insulation as well as their more modern building systems. Homes built between 2010 and 2019 have 13% higher value than those built prior to 2010. The newest homes built after 2020 are valued 19% higher.
Garages, Fireplaces and Centralized Air Conditioning
Garages and fireplaces each add around 10% value to a home. Garages are crucial because they add protected parking spaces but can also serve as additional hobby space. Fireplaces are not only an aesthetic add but, in some areas, can reduce heating costs.
Centralized air conditioning (AC) also adds about 7% value to homes across the country, but has greater impacts on parts of the U.S. that are influenced by extreme weather and expensive cooling costs: Centralized AC adds 23% value in the South Atlantic, 40% value in the East South Central division, and 48% value in the West South division.
Read more about the features that add home value in this study from Na Zhao, 起点传媒 principal economist.