Home remodeling in on the rise. In 2014, according to a Harvard University study there was $300 billion spend on home improvements and repairs. It is predicted that in 2015 this number will be exceeded.
What is causing the surge in home remodeling?
A number of things are causing the surge. Some home owners are ready to move, and feel they need to spruce up their homes before putting them on the market. For many home owners however they have decided they may not be able to sell and get what they need to get from the sale. They are deciding to stay put in the home, and are putting out money to handle needed repairs and upgrades that they have put off. There are investors who are entering the rental market and need to handle upgrades and repairs on the investment homes they are buying to rent. Then there are the younger people who are just starting out, who get a “starter home”, but it needs repairs.
According to the reports, “baby-boomers” are leading the way in spending on remodeling projects. In some cases they are finding they need to retrofit their home to adjust to the needs of adding an older parent into their living space, or they have a child who is moving back home, unable to make it on their own in the current economic job market. So the baby-boomers find they need to add another bedroom, or bath, or otherwise make the existing home they have be more accommodating to multi-generations.
The study has shown that people in larger metro areas have been more spendy while the area of the country where there is still a lot of distress in jobs and economic conditions, obviously not as spendy.
For some remodelers the focus has been on energy saving projects such as better windows or solar, or other energy saving efficiencies. And for some home owners, they have been in their homes now so long they really need a new roof, or air conditioning. So their spending is truly necessity.
Be cautious when selecting a contractor.
Are you one of the home owners who is finding you need to do repairs or remodel? If so, be cautious as you select the service provider. Be sure you check references and if the contractor is licensed with the state. Don’t get stung with some non-reputable contractor.
Plan for now and for the future.
Plan out your spending to get the biggest “bang for your buck”. Carefully consider remodeling projects. Consider both your current need, but also what would a new buyer think of the remodel and is it something that would be sell-able in the future — for at some point you will likely want to sell.