Return on investment, or ROI, is a performance measure used to compare home improvement projects. To calculate ROI, the benefit or return of an investment is first found by subtracting the cost of the project from the gains. This figure is then divided by the cost. The result is expressed as a percentage or a ratio – the higher the better. A high ROI means the investment gains compare favorably to investment cost and, thus, the project can be considered a good investment.
According to Remodeling Magazine’s annual Cost vs. Value report, wood decks here in Frederick, Maryland have an average ROI of 83.3%, which is nearly 3% higher than the national average. These figures are based on a 16-by-20-foot deck using pressure-treated joists supported by 4×4 posts anchored to concrete piers.
A composite deck in Frederick, meanwhile, has an average ROI 77%. While certainly nothing to scoff at, this figure is more than 5% less than that of wood decking. But why?
Comparing Wood Decks and Composite Decks in Frederick
When it comes to comparing wood and composite decking to discover the reason behind the ROI difference, you don’t have to look very far. It all comes down to initial price. Composite decking is initially more expensive than wood decking and will add roughly the same to your home value as a wood deck, therefor composite has a slightly lower ROI than wood. This does not mean that composite decking is a worse investment, especially when you take into consideration Total Cost of Ownership (TCO).
TCO, also known as Life Cycle Cost Analysis, is a financial estimate, just like ROI. However, TCO also takes things like maintenance into account to help homeowners better understand how an investment will affect them financially for years, not just during installation. So, when looking at TCO, wood decking and composite decking are much more comparable. This is because wood decks require annual maintenance – cleaning, sanding, staining, etc. – while composite decks do not.
At the end of the day, the choice between wood and composite decking comes down to personal choice.
Albaugh & Sons: Installing Composite and Wood Decks throughout Frederick County
Albaugh & Sons is a Home Improvement Contractor located in Frederick, specializing in both wood and maintenance free composite decking. We have more than 10 years of experience in the deck-building field, so we can easily build whatever deck you can dream up. Our deck division is made up of experienced, personable employees who pride themselves on being professional and dedicated to completing every job the right way.
The estimate you receive for your deck is not only competitive; it is extremely accurate.
If you are looking for a Professional Deck Builder in Frederick, you’ve come to the right place! Please contact Albaugh & Sons at 301-964-9379. We are based in Frederick, Maryland and service all of Frederick County and parts of Washington and Carroll counties.