Food for thought from a professional? Len Bealer of Kenneth Bealer Homes does both remodeling and custom building. "We are seeing a lot of folks who are thinking about moving or who can't replace the lot they are on with its view and what they have," he says. "We set about to find ways – because their needs have changed since purchasing the existing home – to sit down and talk to the client to determine future needs and how to remodel to keep lake or golf course views, for example."

Let's assume you choose to remodel and are seeking the optimal recession-proof home improvements to deliver a higher sales price down the line. Before we examine the best remodels for your dollars, think about a few factors you may not have considered: your neighborhood, neighbors, and long-term forecasts.

What about the Neighbors?
Harvard University's Joint Center for Housing Studies delivered an April 2008 paper titled "How Good Home Improvers Make Good Neighbors." The primary question was to address how neighborhood home-improvement activity affects individual property value appreciation, independent of individual home improvements. Conceptually, when a homeowner undertakes a home-improvement activity, he or she is increasing the quantity of housing services provided, thereby increasing the value of the housing unit. However, the aggregation of these improvements increases the price of those services by making the neighborhood more desirable, ultimately increasing the house value of homeowners, even neighbors who did not undertake any improvements themselves.

Forecasting for the Remodeling Future
Another Joint Center for Housing Studies paper, "A Long-Term Outlook for Homeowner Remodeling Activity: Results and Implications" has equally positive findings. Between 2005 and 2015, homeowner improvement activity is projected to grow by 43.6 percent, from $188 billion to over $270 billion. This translates to a 3.7-percent, inflation-adjusted average annual growth rate. How do these patterns compare with historical trends? Harvard estimates patterns exhibited in the next decade will reflect long-term historical trends of the late 1990s and settle into positive solid growth at rates slightly lower than trends experienced in very recent years. Between 2000 and 2005, the home-improvement market grew by an astounding 42.5 percent in nominal dollars. Much of this growth was fueled by atypical factors in the housing market – historically low interest rates, exceptional home-price appreciation, and rapid housing turnover. As many of these factors start to transition toward more typical trends, many experts expect the remodeling market to follow suit. However, continued household growth, increased spending, and a growing accumulation of wealth will support sustained strength in the market.

Get the Most for Your Money
With those stats in mind, what are the recommended improvements to recoup the most from your investments? Typically these comprise energy-efficient features and cosmetic upgrades. One option clearly gaining steam is going green; sustainable and renewable materials and appliances are in high demand for delivering reduced power bills and a higher quality of life based on present trends, according to the American Institute of Architects (AIA).

Here is a quick guide to today's smartest choices of home improvements with holding value:

Kitchens
Always popular as a remodel area, today's kitchens are becoming a haven for renewable materials instead of simply a destination for high-end appliances and marble countertops. Look for bamboo and cork to show up as eco-friendly features in flooring and countertops, trending over into bathrooms as well.

Sustainable Flooring
Why not? Cork and Bamboo are an ideal alternative to more expensive tile and wood flooring. Lower-density cork serves as an effective insulator, it doesn't rot when exposed to water, and there's no dust absorption.

Countertops
Quartz-based countertops are gaining in popularity due to their durability and color choices. Granite also remains popular, but a growing number of alternative options remain—like bamboo. Depending on the space size to be covered, bamboo is sold in different swatches with the parquet model being a popular choice.

LED Lighting
Does a lower power bill appeal to you? Using less energy than standard light bulbs, LED lighting – light-emitting diode – systems are a little pricier than conventional bulbs upfront, but readily pay for themselves over time based on your savings.

Filled-in Ceiling Spaces
An emerging trend for two-story, vaulted-ceiling rooms is to remodel, adding another room to fill the space. Besides the expense to heat and cool the expansive spaces, cleaning and draftiness are also negatives. Major builders say more buyers are looking for the maximum number of rooms and square footage for their money, so they're opting to have a loft, bedroom or playroom built in the air space where the plans call for a double-height ceiling.

Garage Doors
Curb appeal is non-negotiable for your home, particularly if your garage is one of your home's top visual points. Opting for luxury carriage-door models and revamped pavement leading the way to them can boost your home's curb value. Costs vary, of course, depending on the number of doors along with the style and the quality of the pavement.

Landscaping
Everyone – particularly home buyers – like pretty yards, plain and simple. Many times it's the first thing that captures a buyer's eye when house hunting. This is not only important when they visit your house in person, but also in any online photos marketing your home. Of course, if you're not selling your home, you'll still very much appreciate the aesthetic value yourself.

Energy Star Windows
One way to save hundreds per year in heating costs and recoup a 10% rebate from the government is to install Energy Star certified windows. They cost more, but again they pay for themselves over time due to your reduced heating bills. Depending on outdoor winter temperatures, the Environmental Protection Agency estimates an annual savings of between $100 and $465.

On-Demand Water Heaters
Ever run out of hot water in the shower? Why not opt for a more energy-efficient, water-heating system that heats water on demand instead of warming water continuously? In some households this switch could pay for itself in a year, not to mention no cold showers.

Radiant Heat
Though it can be an inconvenient and expensive system to install, radiant heating has gained favor with the U.S. Department of Energy, which estimates this heating is 20% more efficient than conventional systems. Boon for you: converting to radiant heating may save you 20% a year in heating costs.

Water-Saving Toilets
Based on the American Institute of Architects' 2008 research, homeowner demand for water-saving toilets has grown. It's easy to see why: A 1.6-gallon-per-flush model uses about half the water of conventional toilets. Also look for dual-flush toilets that use more or less water depending on what is being flushed. They can save the equivelent of a swimming pools worth of water each year.

Doorless Showers
Popular with aging baby boomers and many other homeowners who like their appearance; walk-in showers are continuing to gain in popularity. While not necessarily a design trend for a down economy, consumers simply love these, according to architects and builders.

Regardless of which enhancements you choose, when you decide to remodel a home the benefits are abundant for your house's future value. Plus, you really end up with what you define as your "dream home" for today.v

Areas to Focus On

Cork flooring

Quartz countertops

LED lighting

Filled-in ceiling spaces

Garage doors

Landscaping

Energy Star windows

On demand water heaters

Radiant heat

Water-saving toilets

Doorless showers

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