If you’re looking for a way to increase the square footage in your home without making major structural changes or losing part of your yard, remodeling your basement can be a great way to go. Plus, if you live in the right city, you may also be making a good investment in your home.
When it comes to remodeling your home, it’s not only about what project you choose and how well the work is done, but it’s also location, location, location. Remodeling your home’s basement has an average return on investment of 70 percent nationally in 2013, but that number can vary dramatically depending on where you live. In Honolulu, Hawaii, the return was a whopping 118 percent, but in Worchester, Massachusetts, remodeling your basement only had a return of 41 percent.
Here are the top ten cities where remodeling your basement has the most bang for the buck, based on data compiled by Remodeling Magazine.
Best Cities for Return on Investment from a Basement Remodel
| City | ROI | Cost |
|---|---|---|
| Honolulu, HI | 118.3% | $73,873 |
| San Francisco, CA | 105.2% | $83,394 |
| Charleston, SC | 98.8% | $56,157 |
| Austin, TX | 92.1% | $53,133 |
| Houston, TX | 91.3% | $55,149 |
| San Antonio, TX | 91.0% | $53,815 |
| San Diego, CA | 90.9% | $72,863 |
| Dallas, TX | 89.1% | $53,987 |
| Miami, FL | 89.0% | $57,696 |
| Phoenix, AZ | 87.7% | $59,098 |
Many of the cities in the top ten are in warm climates where summer can be punishingly hot (Texas, Florida, Arizona). A finished basement can be a great place to cool off in the warm summer.
So where should you consider thinking twice before remodeling your basement? Here are the ten cities with the smallest return on investment from remodeling the basement.
Worst Cities for Return on Investment from a Basement Remodel
| City | ROI | Cost |
|---|---|---|
| Buffalo, NY | 53.1% | $62,117 |
| Providence, RI | 52.7% | $65,023 |
| Detroit, MI | 51.8% | $67,274 |
| Albany, NY | 50.0% | $61,723 |
| Rochester, NY | 49.4% | $60,325 |
| Allentown, PA | 47.6% | $64,230 |
| Manchester, NH | 47.1% | $58,825 |
| Springfield, MA | 44.9% | $62,967 |
| Harrisburg, PA | 44.7% | $59,339 |
| Worchester, MA | 40.6% | $68,407 |
Adding a finished basement in the northeast is not a particularly good investment. In fact, the only city in the northeast where finishing the basement had a higher return on investment than the 70 percent national average was Baltimore, Maryland, with a return of 73 percent.
Top image credit: Tiek Built Homes
