Remodeling is Making a Comeback

--------------- KIMBERLY VAN HAL | Good to Know® ---------------

From older homeowners to millennials buying more affordable homes that need some work,

remodeling is making a comeback. According to the recent “Demographic Change and Remodeling Outlook” report from the Harvard Joint Center for Housing Studies, the residential remodeling market, which includes spending on improvements and repairs by both homeowners and rental property owners, reached an all-time high of $340 billion in 2015 and is expected to increase 2% per year on average through 2025 after adjusting for inflation.

The baby boom generation has led home improvement spending for the past 20 years, and its influence shows no signs of waning. Gen Xers are now in their prime remodeling years and, while some are still recovering from home equity losses after the housing crash, many in this generation will undertake discretionary projects deferred during the downturn. 

As younger households move into homeownership, they'll supplement the already thriving improvement market. As a new generation of homeowners enters the remodeling market, specialty niches focused on energy-efficiency, environmental sustainability, and healthy homes are likely to see significant growth. Home automation—encompassing everything from entertainment systems to home energy management, lighting, appliance control, and security—is also emerging as a strong growth market, particularly among younger households.

If you’re considering a remodeling project in your near future, keep in mind the renovations that recoup the most in value. According to Remodeling Magazine’s 2017 Cost vs. Value Report, homeowners in our area of the United States will most likely see the best return on investment from the following projects:

•                     Adding fiberglass insulation in the attic,

•                     Replacing entry doors with steel ones (more expensive fiberglass doors offer less of a return),

•                     Replacing garage door(s),

•                     Adding manufactured stone veneer detailing to the front of the home, and

•                     Doing a minor kitchen remodel.

Projects that recoup the least?

•                     Installing a back-up generator,

•                     Adding a backyard patio, or

•                     Adding a bathroom addition.

If you'd like more information about today;s remodeling market, please contact me at 701-306-9972 or kim@bhhspreproperties.com.

--------------- KIMBERLY VAN HAL | Good to Know® ---------------

Kimberly is a residential agent with Berkshire Hathaway HomeServices Premier Properties.

Since 1987, she's helped home buyers and sellers in the Fargo-Moorhead metro area achieve their real estate goals.

701.306.9972 | kim@bhhspreproperties.com | fmkim.com