A Great Time to Renovate
Have you noticed your neighbors adding pools, outdoor entertainment areas and extra square footage? If so, you’re not alone.
Harvard’s Joint Center for Housing Studies estimates that Americans’ total spend on home remodeling projects will rise from $332 billion in the third quarter of 2020 to $337 billion in the second half of 2021.
Check out these statistics from a 2020 CNBC report:
• Houzz, an online home remodeling platform, reported a 58% annual increase in project leads for home professionals in June.
• Poolcorp, an international distributor of swimming pool supplies, parts and outdoor living products, saw a 54% increase in the summer of 2020.
• Kitchen and bath remodels jumped 40% in June 2020 compared to June 2019.
• Home extensions and additions jumped 52% in 2020.
• Security and privacy also saw much greater demand with interest in fence installation and repairs up 166%.
Stimulus payments are driving many of these decisions to renovate, as is the increased equity in homes. Home prices continue to gain, despite the economic downturn, as demand for housing is hitting new levels.
Why Now?
Even as vaccinations continue to roll out and travel is experiencing an uptick, it’s not too late to take advantage of some of the incentives related to renovating your space.
In fact, you may have saved some money by waiting for lumber and materials production to return back to normal after many industries related to the construction industry saw major shortages during the pandemic’s earliest days.
This could be a good time to take advantage of lower costs while also being able to add value back into your home, should you ultimately decide to sell.
What to Renovate
Outside of the traditional bathroom and kitchen remodels, many Americans are feeling the need for extra square footage. More parents are working from home than ever before. More kids are working on school projects remotely. And while that may change as we return to some sort of normalcy, there is good reason to believe that more space will remain a top need for families moving forward.
Finishing a basement could be a great answer to a space shortage in your home. This project will run you $18,400 on average, but can cost up to $34,000, depending on your square footage. The project involves installing drywall, flooring, and paint but can recoup up to 70% of the cost, according to HomeAdvisor.
Another way to increase the value of your home is to focus on the outside. Consider hiring a company to handle the maintenance of your exterior. To mow the lawn, prune shrubs, apply mulch and plant about 60 perennials or annuals over about 2,800 square feet costs about $3,000 but can net a 100% return on investment, according to the National Association of Realtors.