The desire to increase home values has lifted remodeling spending over the past decade, and is expected to boost them even more in the coming year. Industry experts believe that Baby Boomers and Gen Xers have opted to improve their homes rather than sell their home and purchase other ones. In fact, home improvement has surged by about 30%, according to a report by BuildFax, a home analytics company.
“Two categories are on high levels – new housing and remodels,” said Jonathan Kanarek, the CEO of BuildFax. “Although there has been a slight dip in the home remodeling industry, we expect to see an improvement in the coming months.”
However, existing home maintenance has increased over the last five years at a very rapid pace, leading the annual volume to increase by 5.23%. Many homeowners are spending money to renovate their homes and are more focused on the investment they're making, and not as concerned about cost. Upgrades in the kitchen and bathroom, which are the most expensive, are the most sought out, because they add the biggest boost to the value of the home.
The Power Of The Home Depot
A report done by the Home Depot revealed that homeowners would prefer to stay in their aging home and renovate it rather than moving into a newer home. However, this behavior continues to paralyze the construction industry, which has seen less investment by home buyers in the last five years. In fact, according to the National Association of Realtors, job openings in this industry hit an all-time low in June.
Meanwhile, HomeAdvisor states that additions and renovations in the exterior part of the home have topped the list of remodeling trends over the past year.
Buy, Sell Or DIY?
No one can put their finger on exactly why home improvements and home remodeling are on the rise. Some attribute it to inflated home prices, while others point out that it's simply a sign of a strong economy.
Other critics contend that homeowners simply want a fresh, new, updated look for their home. In fact, most say that their home upgrades have nothing to do with the end goal of selling the house, which is quite surprising.
Of course, it could be an "all of the above" type of answer. The end result is to increase the satisfaction of living in their current home, while also adding to the value of their home, which most say is quite easier compared to purchasing a new home.
According to the HomeAdvisor, it is safe to say that the industry should expect another banner year for the home-renovation industry. The statistics from HomeAdvisor project that homeowners will spend 6 to 7% on home renovations because owners have become reluctant to either buy or sell property.
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