More Money Being Invested Into Remodeling Services
Low interest rates and rising home prices have contributed to a boom in home remodeling. Between February and April, older homeowners maintained the steady trend of contributing nearly three times as much money toward remodels as their younger counterparts. However, younger homeowners and first-time homebuyers significantly increased the amount that they invested into home remodels.
An Increase In Remodel Spending
The survey, conducted by Houzz & Home, concluded that homeowners over the game of 55 spent an average of $73,100 on their remodel, a figure that was not much different than 2015. Homeowners between the ages of 35 and 54 spent an average of $53,300 on their remodel, a figure that was 2% greater than the year prior. Homeowners between the ages of 25 and 34 spent an average of $26,200 on their remodel, a figure that was a whopping 7% higher than the previous year.
A Noticeable Difference In First-Time Buyers
First-time buyers demonstrated a 22% increase in spending from the previous year, spending an average of $33,800 on their remodel. For comparison sake, renovation spending by long-term homeowners only rose 3%. This marks a calculated move by first-time homebuyers. Rising home prices have made it more difficult to purchase a home. First-time homebuyers, perhaps cash-constrained, are purchasing properties that they know are going to require remodeling work. In turn, because the project is seen as a “fixer-upper,” it can be purchased at a lower cost. First-time homebuyers are involving themselves in more than just “cosmetic” remodels. They are undertaking extensive renovations, updating four rooms at a time, on average.
The Trend Is Expected To Continue
Over half of those surveyed indicated that they expected to start or continue renovations over the course of the next year. 67% of those surveyed indicated that they were undergoing a remodel because they hoped that it would increase their home’s resale value. 84% of respondents indicated the remodel was to improve functionality.
Invest In Remodeling Services Today
At Cardigan, we specialize in a wide array of remodeling services, including kitchen remodels, bathroom remodels, cabinetry, tile work and plumbing services. If you are interested in investing in your home and upgrading your quality of living, contact us today at (410) 451-9340. We look forward to working with you soon!