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Why is the Return on Investment of a Composite Deck Lower than Wood?

Return on Investment Composite Deck

Composite decks come in at 77%, slightly lower than wood…but why?

As you may recall from previous blog posts, the average return on investment (ROI) of a wood deck in Maryland is 83.3%, which is 3% higher than the national average, according to Remodeling Magazine’s annual Cost vs. Value Report 2015. Composite decks, meanwhile, come in a little lower at 77%, which is still significantly higher than the national average – 68%. But why the huge difference in ROI, when many people praise the benefits of composite decks? Well, let’s take a look

The Reason behind the Lower ROI of Composite Decks

With ROI, it all comes down to money. While both a composite deck and a wood deck will boost your home value roughly the same amount, composite decking is initially more expensive. Therefore, you can expect to recoup less of the cost of the project when you finally sell your home. But before you write off composite decking as a bad investment, take a deep breath and let’s look at this situation a little more closely.

In order to truly understand the value of a composite deck we must look at the Total Cost of Ownership (TCO), not ROI. TCO is a financial estimate intended to help homeowners determine the direct and indirect costs of a product or system over its entire life. So while ROI simply takes into account initial cost and sales cost – profitability – TCO looks at maintenance and other such costs to give you a better understanding of your total investment.

When looking at TCO, composite decking is much more comparable to wood decking for two big reasons: durability and maintenance.

  1. Durability: A wooden deck has an average lifespan of 10-15 years (if you perform regular maintenance). A composite deck can easily last 25 years or more!
  2. Maintenance: Composite decks require very little maintenance. Period. While composite decks may initially cost more, they can save you a lot of time and money in terms of annual maintenance. Wood decks, meanwhile, require annual staining and waterproofing, which can add up over time.

Composite Deck Specialists in Frederick, Maryland

Albaugh & Sons is a Home Improvement Contractor located in Frederick, specializing in maintenance free composite decking, including Trex, Timber Tech, and Azek. 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.

Click Here for a FREE Estimate

The estimate you receive for your deck is not only competitive; it is extremely accurate.

If you are looking for a Professional Wood Deck Builder in Frederick, Maryland, 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.

You can also follow Albaugh & Sons on FacebookTwitterGoogle+, YouTube, and Pinterest.

This entry was posted on Friday, June 19th, 2015 at 2:43 pm. Both comments and pings are currently closed.