![]() The upside is that remodeling can add a lot of value to your home and there are some projects in particular that see strong returns when it comes time to sell. Get Started-100% Free How much value do these projects really add to your home Sign up for Credit Sesame and see everything your credit score can do for you, find the best interest rates, and save more money at every step of the way. “That remodeler is shortening that quote window because their prices are going up.” “Normally, when a remodeler submits a quote, they'll leave it open for maybe 30 or 45 days because the homeowner is getting bids from a few different contractors,” says Finnegan. Waits for contractors are several months-long and quotes on pricing are changing all the time. And so they're actually able to raise their prices, some of them for the first time in a while.” So they're actually looking to just focus on this part of the market that can afford remodeling projects now. “Remodelers are basically having to raise their pay rates to their workers to keep them from being poached by remodelers across town, that's one part of the dynamic,” says Finnegan.Īdd to that supply chain disruptions, high demand for materials, and more recently, the high cost of gas and diesel. In 2020, Americans put $420 billion into remodeling their homes, according to the National Association of Realtors and the National Association of the Remodelers Industry 2022 Remodeling Impact Report.Īnd millennials are playing a big part in that.īut taking on a remodel comes with its own set of issues.įinnegan says about one in 10 households is engaged in a large-scale remodel, and as demand for supplies and labor goes up, so does the cost. More than half of homeowners renovated last year pushing the median spend on renos up 20% to $18,000. Renovation activity and spending hit a four-year high in 2021, according Houzz’s U.S. ![]() And for a bunch of reasons, it’s probably going to be hard for the next three to five years.”Īnd despite the frenzied market – or because of it – many people are putting money into remodeling their homes. “And that's just gotten harder since COVID. “It's so hard to actually find the perfect house in the perfect neighborhood,” says Eric Finnegan, vice president of research and demographics at John Burns Real Estate Consulting, which delivers analysis on the housing market to clients such as builders, realtors and investors. And with interest rates rising, it isn’t just hard getting on the property ladder now, it’s tough trying to move up it as well. More houses are finally becoming available, but prices are still up 10% over last year, according to Redfin. The housing market is a confusing place right now. If you’re thinking of renovating, you’re not alone
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