Thinking about remodeling in 2020? You are not alone. We did some research and are here to share some facts. According to a report from the Harvard Joint Center for Housing Studies, home improvement spending in the U.S. is up more than 50% since 2010.
So what is this exactly telling us? Americans are spending on average more than $400 billion a year on residential renovations and repairs. It is also telling us that homeowners across the country actively updating their existing homes versus selling and buying new. In essence, the market continues to see a shortage of new construction and a reliance on aging housing stock that requires upkeep and repair. Other factors include, higher housing prices that have delimited current owners spending power to buy and move up. And with the increase in home improvement loans, and growing population of older homeowners who are financially equipped to pay for renovations.
The american market is seeing these “spenders” fall into three main categories: Homeowners using surging equity to make improvements, homeowners playing catch-up on deferred maintenance and updates, and rental property owners. In this report the average expenditure on home improvements with no surprise varies by household income. But 40% took on fairly cheap projects in the $2,500 or less category and 56% in the $5,000 or less. And only 10% in the upwards of $20,000 or more range. Keep in mind that these % of costs can change dramatically dependent upon household income.
- Replacing/Repairing Flooring and Ceilings
- Updating Plumbing and Cabinet Fixtures
- Built in Dishwasher and Garbage Disposal
- Updating Windows and Doors
- New Water Heaters
- New Roof
- Bathroom and Kitchen Remodels
- Adding Irrigation Systems
- Updating to Central Air
- Updating Electrical
Other popular remodels that our team has received alot of requests on: Decks, Three and Four Season Porches, New Home Builds and Home Additions.