It’s my great privilege to visit with homeowners considering a remodel. Homeowners are more excited than ever at the prospect of making their home into something that fits their lifestyle and is a reflection of themselves. Many have done their research to compare the cost of moving. They’d rather stay put and try to get everything they want in the form of a home renovation.
They know the remodeling industry is hot right now. The majority of them have also expressed their frustration in trying to get a call-back from contractors or the extended lead times that companies are predicting. Although it’s not my habit to disregard return-phone calls, I would tend to agree that it is a great time to be in this thriving industry, remodeling.
I read an insightful article the other day in Remodeling Magazine which referenced a report entitled “Improving America’s Housing 2019” from the Remodeling Futures Program at the Joint Center for Housing Studies (JCHS) of Harvard University. This report helps to shed some light on WHY remodeling has soared since the end of the Great Recession. JCHS reports that the remodeling market has in fact expanded more than 50% since 2010.
Increased Home Values and An Aging Population Contribute to Remodeling Boom
Our nation’s aging housing inventory is a big reason why remodeling is not only the trend but rather necessary. About 80% of the 137 million homes in the U.S. are at least 20 years of age, with 40% being 50 years old or more. Increased home values and an aging population are 2 other major contributors to the remodeling boom according to the JCHS report. The available equity in homes has given owners the incentive to reinvest in renovations that will allow them to safely remain in their home, longterm. The 55+ demographic now accounts for more than half of national spending on home improvements.
Homeowners 35 and under are also contributing to the renovation uptick. They’ve steadily increased their market share of homeownership in recent years. Conversely, the report reveals that DIY spending has actually gone down over the past 20 years. It could be directly related to homeowners no longer able to perform DIY projects. Many others attribute the lack of interest or time to complete projects that previous generations would have undertaken.
I’m finding that more homeowners are considering remodeling their home to accommodate an elderly parent. They want to give the parent some anonymity without leaving them alone in a home that can be unsafe and lonely. They are calling to remodel anything from a basement or attic, to a garage. Some are considering taking a step further to build an addition or proper ADU (accessory dwelling unit). I did not see this type of wide-ranging trend even 10 years ago.
The report presents a couple of factors that may temper the upward remodeling surge. It predicts that the inventory of previously unoccupied, bank owned or foreclosed houses should slow going forward. Families are deciding to stay put in one home longer. This will eliminates a lot of those 1st year, move-in remodel projects.
Remodeling still outpaces new home construction according to the report, a trend that has been going strong for last decade. It shows remodeling as a main-stay means for our nation to meet it’s housing needs.
-Joe Reed, CKBR
Nice post Joe! Interesting information and insight. I too have seen an increase in creating space for multi-generation homes. Interesting times ahead!
Thanks Cari!
Very timely article as we have been looking at homes to possibly move, but I’m having a difficult time processing the idea as we have upgraded our current home from it’s once builder cookie cutter basic, and comparing the costs of an ‘upgrade’ (only in property size that is), we’d be remodeling yet again at the next home. Maybe a new kitchen here is in my near future 😉
Thank you for the feedback Emily!