What Physical Features Affect Home Value?

“The value of a single-family home is shaped by many factors, but its physical features remain among one of the most influential,” notes the National Association of Home Builders.  

Using a baseline home built before 2010 and measuring under 1,000 square feet on a lot less than one acre, NAHB reported the physical features that change a home’s value and by how much.  

One of these features is size. NAHB states that homes measuring 3,000 square feet or more change home value by an average of 54%. Those measuring 2,000-2,999 square feet change value by 30%, and that number is 17% for homes measuring 1,000-1,999 square feet. 

Likewise, lot size contributes to value, with lots measuring five or more acres changing in value by 28%, compared to 4% for lots 1-4.9 acres. 

Additionally, NAHB reports that age is a factor. Homes built in 2020 or later change in value by 20%, compared to 13% for those built from 2010-2019. 

The number of bathrooms and bedrooms also contributes to value, with bathrooms making the bigger impact. NAHB notes that each additional full bathroom increases home value by approximately 32%, compared to only 5% for additional bedrooms. Half baths add an estimated 15%.  

Other amenities that add value include fireplaces (11%) and garages (10%).  

In terms of home remodeling projects that maximize value, the National Association of Realtors® reported that the top specific projects that may offer the highest returns are: 

1. New steel front door (100% estimated return based on upfront cost) 
2. Closet renovation (83%) 
3. New fiberglass front door (80%) 
4. New vinyl windows (74%) 
5. New wood windows (71%)