Renovations Are All the Rage with Homeowners

In a survey suggesting happy days ahead for home-improvement retailers, nearly three-quarters of the 4000 homeowners questioned say they’re looking to remodel rather than buy a new place. That finding is included in a recently released report commissioned by real estate broker Redfin and fielded by Ipsos.

“Many Americans are choosing to stay put and make the home they already have work for them,” said Chen Zhao, Redfin’s Head of Economics Research. “That could mean improving outdated spaces, adding space for a growing family or reconfiguring the existing space so it works for everyone.

“Younger homeowners are especially likely to renovate instead of jumping to a different house; they’re earlier in their homeownership journey and more willing to invest in improvements to build equity. Those with kids living at home are often motivated to plant deeper roots where they are so they can stay in the same school district and community.”

The main reason homeowners are choosing to stay put is because it’s so expensive to move, Redfin notes.

“With high mortgage rates and home prices, moving isn’t an affordable option for many Americans—especially when about 80% of homeowners with a mortgage have an interest rate below current levels,” according to a recent Redfin analysis. “Other recent research by the firm shows that while housing inventory is increasing slightly on a year-over-year basis, there’s still a shortage of desirable, move-in ready homes for sale—especially those that are spacious enough for a family.”

The most popular upgrades, the survey found, are:

• Painting, with nearly half (47%) of recent renovators gave their home a fresh coat.
• Bathroom (43%) and kitchen (40%) improvements.
• Exterior maintenance and landscaping, with 35% of renovators opting for those upgrades.

Home improvements not only provide homeowners with the space and features they want to make their house comfortable; they can be worthwhile in the long run, Redfin representatives say.

“If you can afford it, investing time and money into making your house look and feel better can help when it comes time to sell,” said Jo Chavez, a Redfin agent in Kansas City, Mo. “Updated homes tend to sell faster than fixer-uppers, and for more money.”

Click here for more from Redfin survey, including data on how much people typically spend on remodeling jobs.