2023 Home Remodeling Surge Explained — Benson Homes
During times of economic and supply chain uncertainty, many homeowners may wonder if it’s the right time to jump into a remodeling project, or if it’s safer to “press pause” for a bit. But according to a late 2022 survey released by Houzz, the overwhelming majority of homeowners have actually decided to keep moving forward with their plans to remodel their bathrooms, kitchens, laundry rooms, exterior areas and more this year. If anything, they are more eager than ever to keep the ball rolling on the changes they have planned for their homes. In fact, only 1% of homeowners canceled their remodeling plans…and nearly a quarter of homeowners plan to start their home improvement projects in the next 12 months. We’ve seen the same trends among our own local clients, and decided it was worth exploring.
So, what are the factors that are pushing so many homeowners to commit to their remodeling projects this year?
Home availability is dropping but interest rates remain elevated.
The cost of moving to a new home is often much steeper than improving a current home. Mortgage rates hit a peak last year, but they are continuing to trend upwards this year. While the market remains volatile and is still uncertain, more homeowners seem to be making the conscious decision to settle in and apply their finances towards improving their current homes, rather than looking elsewhere or building from scratch.
Remodeling can be a better investment than buying.
Not only can the costs associated with buying a new home be astronomical these days, but the National Association of Realtors says that housing inventory is expected to remain tight in 2023. A large portion of homeowners (67% according to Houzz) are choosing to stay put in their current homes and strategically invest in remodeling projects that will raise their home’s value. This decision, coupled with the housing inventory shortage, can lead to a much higher ROI. So homeowners reap the benefits of living in a newly remodeled home in the short term, while knowing that the funds and time they invested into creating a better home will pay off in the long run, if they ever decide to sell.
Homeowners are ready to create their dream spaces.
The last several years have been tumultuous and full of ups and downs. Homeowners, after spending more time than ever within their own 4 walls, are ready to take their current spaces and fully enjoy them. They don’t want to keep putting off creating their dream homes any longer.
One top challenge the survey uncovered is that a startling 35% of homeowners are struggling to find the right professionals for their remodeling needs. With ongoing supply chain and labor shortages, homeowners beginning the remodeling process should proceed with caution. It is crucial that homeowners ensure that they are working with someone that is experienced and brings lots of knowledge, contacts and expertise to the table in order to help navigate shifting timelines and materials issues. It can be daunting to find the right company for custom remodeling and design, but investing in a home remodel isn’t likely to pay off unless it can be executed with quality design, craftsmanship and materials that will stand the test of time.
If you’re struggling to find the right remodeling partner, or have questions about the scope of what it will take to make your home dreams a reality, schedule a complimentary consultation with Benson Homes by connecting with us here.
Resources:
https://www.forbes.com/advisor/mortgages/mortgage-interest-rates-forecast/