A fireplace used to make home values hot, but desire is cooling off
Fireplaces are a hit with homebuyers in colder regions.
Real estate agents say homes with fireplaces often get offers above the asking price.
Gas fireplaces are especially desirable because of their relatively easy maintenance.
For most homeowners, fireplaces are a sought-after amenity—especially in colder climates. There’s nothing like curling up next to a warm fire and watching it snow (as long as you avoid the inevitable conversation about whose turn it is to shovel the driveway). There’s a lot of evidence that fireplaces raise property value, but it may not be by as much as you think.
There’s no question that fireplaces have historically increased home value. A 2016 Angi survey found that 70% of real estate agents believed fireplaces were a value-add, and 77% of buyers would pay more for a home with a fireplace.
The problem, though, is the sum. If the average fireplace costs between $850 to $3,500 to install, how much are people willing to pay for one that’s already there?
At the time, the majority of real estate agents believed an indoor or outdoor fireplace added between $1,000 and $5,000 to the value of a home, but only about 35% of buyers agreed. Nearly 25% felt a fireplace wasn’t worth more than an additional $1,000, and 23% of buyers wouldn’t shell out anything extra at all.
In other words, installing a fireplace definitely adds some value to your home, but that value could easily negate itself. Building a wood-burning fireplace can cost up to $30,000 if you don’t already have a chimney.
Though electric fireplaces and other ventless fireplaces are much less expensive, upgrades like finishing your basement or remodeling a bathroom could provide a greater return.
Specific monetary value aside, fireplaces still seem to be tied to high-priced homes, even today. In 2021, Redfin revealed that the average home with a fireplace was listed for 13% more than the national median sale price.
Those homes typically sold for around the asking price, too—though, it’s important to note that 2021 saw a surge in home prices amidst a historic demand, according to the New York Times.
Nonetheless, Redfin found that homes with fireplaces averaged the most views per listing (even though that figure has been plummeting since mid-2020). Gas fireplaces were particularly attractive to home seekers, and homes with the trend had some of the highest sale-to-list ratios compared to other popular features.
Fireplaces used to be one of the most sought-after features—but that’s slowly changing. In 2019, the National Association of Realtors noticed that some homeowners were actively removing their fireplaces, and builders were increasingly excluding fireplaces from new construction.
Just 41% of newly constructed single-family homes had a fireplace, which was a record low. That same year, the National Association of Home Builders (NAHB) found that just 16% of buyers listed fireplaces as a must-have amenity on their annual “What Home Buyers Really Want” report.
By 2021, indoor fireplaces were firmly knocked out of the top five most-wanted features. So, why are fireplaces falling out of trend?
The National Association of Realtors points to:
Liability: According to the National Fire Protection Association, fireplaces and chimneys are involved in three out of every 10 fires caused by home heating equipment.
Space: Some homeowners think their fireplaces take up too much space or it’s in the way of a renovation.
Aesthetic: Some homeowners feel like fireplaces date their homes.
Regardless, a fireplace is still considered a desirable feature, especially in colder climates. It might not be a must-have that will increase the value of your home, but most buyers still view it as a plus. You can’t beat cozy; you just might not be able to put your kid through college with it.
Just as all homes are not the same, not all fireplaces are the same. For a fireplace to actually increase a property’s value, there are several factors to consider.
This really applies to any feature of a home, of course. But as useful and aesthetically pleasing as a fireplace can be, it will go unused and unappreciated by a homeowner who just wants a working HVAC system to keep warm.
Fireplaces in older homes were used as heat sources for the entire home, so they are likely well-situated in one of the main rooms. Larger luxury properties, however, might have multiple fireplaces throughout, including one in the primary bedroom. Since even the sleekest fireplaces take up extra space in a room, it’s worth noting whether a fireplace will be a blessing or a burden for a space.
The type of fireplace that appeals to buyers will vary based on personal preference. But it stands to reason that the easier it is to use and maintain a fireplace, the more desirable it is. You might dream of a wood-burning fireplace, but in reality, you’ll gladly take a gas or electric fireplace that offers warmth and ambiance at the flick of a switch.
A brand-spanking-new gas fireplace that can be fired up at the touch of a button will undoubtedly have more value than, say, a century-old fireplace that has been neglected for decades and is likely a money pit in the making. But again, beauty and utility are in the eye of the beholder—or rather, the homebuyer.
Redfin reported in 2021 that homes with fireplaces were listed on the market for around 13% more than the national median sale price, but this doesn’t mean that they actually sold for that much. While homebuyer demand reigns supreme, the actual ROI on a fireplace depends on various factors, including size, type, and material.
It depends on the location of the home and, more particularly, the region’s climate. For example, a Florida homeowner can rest assured they won’t lose money at resale if their home doesn’t have a fireplace. However, buyers in Minnesota or other northern states known for frigid winters might offer a lower price if the home doesn’t come equipped with another way to stay warm.
Gas-powered fireplaces seem to be the most desirable type for homebuyers, per a Redfin report on homebuying trends. That said, any fireplace that has been maintained well and is in safe, working condition could be a draw for buyers, regardless of whether it uses wood logs, propane, or electricity as fuel.
