Americans are Moving Less, Renovating More
Americans are moving less, staying put longer and investing in more home renovations and remodels.
As recently as 2007, first-time home buyers would stay in their home about seven years. That moved up to 11 years in 2016. Those who have owned a home before typically stayed for about 11-and-a-half years. Nowadays, those same folks are staying 15 years or longer, according to the latest data from the National Association of Home Builders.
New home construction spending remains 35 percent below the levels of a decade ago. At the same time, new forecasts project the investment in remodeling and home repairs set new records in 2017 and will surpass the mid-2000s housing boom in 2018.
Americans have increased spending on home remodeling projects every year for the past 10 years. Remodelers have been fortunate to benefit from increasing home values, record low home improvement borrowing rates for HELOCs, and elevated pricing due to a labor shortage.
Because homeowners are staying longer, they are more likely to do feel-good projects — upgraded kitchens and master baths, for example, with higher-end finishes.
Remodeling magazine just released its much-read annual “Cost vs. Value” report trends for 2018. The
According to the Cost vs. Value report, on average homeowners should expect to get back 64 percent of every dollar invested in renovations. Anyone considering a replacement or remodeling project should look at home prices, staying value of project investment, and planned stay in the home to help guide decisions.
Are you curious which upgrades you should make? Start by asking yourself how long you plan to live in your home? If you see yourself staying in the house for at least five years, there’s less cause for concern about value and return. Housing trends can change dramatically in just a few years and remodeling, and replacement costs are sure to continue to rise in the near future according to NAHB’s remodeling market index report. So if you are planning to stay put, renovate however will make you happy.
As always, if you have questions or are looking for guidance on a remodeling project, we’d love to help. At Wisconsin Home Remodeling we have the expertise and long-term experience to manage almost any remodeling project.