Remodeling Stats and Spending Trends to Inform Your Improvement Plans

Real Estate News Article

< Back

Remodeling Stats and Spending Trends to Inform Your Improvement Plans

Written By: Jaymi Naciri
Wednesday, September 25, 2019

The study found that, ldquo;Spending on improvements and repairs to the US housing stock continued on an upward trend in 2017, setting a new high of 424 billion. This represents a 10 percent increase from 2015 and more than 50 percent gain from the low in 2010.rdquo; According to their analysis, 22 million homeowners across the country completed at least one home improvement project in 2017, the last year studied.

ldquo;The report, which charted changes in home renovation activity through 2017, attributed part of the increase to a shortage of new construction and a >

The primary ldquo;spendersrdquo; are spread among three main sources: Homeowners using surging equity to make improvements; others playing catch-up on deferred maintenance and much-needed updates; and ldquo;a significant increase in spending by rental property owners,rdquo; they said. It should be noted, however, that owner-occupied homes made up the largest segment of the remodeling market, ldquo;accounting for fully 55 percent of total expenditures in 2017.rdquo; Not surprisingly, the average spend was higher in places where price appreciation was the most robust.nbsp;

A fourth driver is the aging population, ldquo;given that households age 55 and over not only have higher homeownership rates, but many also have the resources to pay for renovations and replacements,rdquo; they said.nbsp;

Spending breakdown

The average expenditure on home improvement was rather modest; 40 percent of participants reported spending a total of less than 2,500, and almost 75 spent less than 10,000. ldquo;Even so, owners that completed large projects accounted for a significant share of the 233 billion homeowner improvement market in 2017,rdquo; they said. ldquo;Indeed, owners spending 50,000 or more contributed a third of national improvement outlays, while owners spending at least 25,000 contributed over half.rdquo;

Most popular home improvement categories

From a historical standpoint, homeowners typically allocate about 40 of their total expenditures on replacements and upgrades. In this study, the percentage was higher.nbsp;

ldquo;Coming out of the last downturn, however, the replacement share climbed to almost 50 percent, where it has remained,rdquo; they said. ldquo;The growing focus on interior and exterior replacements and system upgrades likely reflects necessary investments deferred during the recession. The aging of the housing stock is also a factor. With homebuilding activity still below historical averages, the median age of owner-occupied homes nationally rose to 39 years in 2017, up from 32 years in 2007 and 29 years in 1997.rdquo;nbsp;

Homeownersrsquo; desire for increased energy efficiency also plays a role. The report shows that ldquo;many common replacement projects are also directly >

Most common improvements

The most common project in 2017 was adding/replacing flooring, with 5.2 million homeowners, or 7 percent, reporting. The other most common projects included:

bull;nbsp;Adding or replacing plumbing fixturesnbsp;
bull;nbsp;New windows or doors
bull;nbsp;Built-in dishwashers or garbage disposals
bull;nbsp;New water heaters

ldquo;Nearly 1 in 4 homeowners had some type of replacement project in 2017 to update home components or systems, compared to 9 percent of owners making improvements to their lot or yard such as driveways or walkways, fencing or walls, sheds, landscaping, etc. and 8 percent making discretionary improvements including kitchen and bathroom remodeling, room additions, and porches or decks,rdquo; they said.

nbsp;





Copyright© 2019 Realty Times®. All Rights Reserved

Updated: Wednesday, October 16, 2019

Improved Canadian Housing Data...
Yoursquo;ve probably heard this one before: ldquo;There are three types of lies ndash; lies,...

How to Find a Real Estate Agen...
Their reviewsWe live in an era where you can find as much infor...

Effective Social Media Strateg...
The results are conclusive: social media is a great tool for real estate agents. However, fi...

Copyright ©2019Realty Times®. All Rights Reserved

Housing Rebound: Factors to Consider
In Miami we have had an incredible year of growth with an ever shrinking supply of condos...

Hoteliers Buy Versace Mansion at Auction
Gindi Family and Nakash Family of New York were the winners of the auction for Casa Casuarina...

Stunning Estate for Sale on Allison Island
Allison Island is one of the man made islands comprising Miami Beach. One half of the island...

Avant Garde and Luxurious Penthouse on Fisher Island
Fisher Island is home to some of the highest net worth individuals in Miami. It is a private...

6000 Indian Creek, Condominium Spotlight
6000 Indian Creek is a Sieger Suarez project that was completed in 2007 and consists of...

$35 Million Buys you THIS on Star Island
$35 Million for a home on Star Island is par for the course in Miami Beach real estate....

Development Update
It is looking like a dusty winter season in Miami, with all the construction rapidly underway,...

North Bay Road Charm, 4330 North Bay Road
4330 North Bay Road is a stunning example of Mediterranean architecture in Miami Beach....

Best Home Improvements for Resale Value
It could not be a better time for a homeowner to list their home for sale in Miami. The...

Biscayne Gets a New Development
The Melo Group of developers acquired 601 NE 23rd St last year and have conceived of 23...

520 West Ave Residence 2301
520 West Avenue is home of the Bentley Bay. Bentley Bay is comprised of two modern towers...

Spice 2013, Guide 101
Miami Spice is a program whereby most of the restaurants in the city encourage people to...

Hollywood has a New Hotel
Margaritaville Hollywood is coming to Hollywood Beach and is likely to completely alter...

Sustainable Waterfront Home on Normandy Isle, 1.85 Million
Rarely on the market do we find completely sustainable, off the grid, homes in Miami Beach....

Housing Inventory on the Rise at the Close of Summer
The Wallstreet Journal released numbers via Realtor.com regarding the inventory of available...

Warm Spanish Style Home Listed on the Sunset Islands
1844 W. 23rd Street is listed on the Miami Beach luxury real estate marketplace for $11...

Former Gansevoort Getting Complete Eco-Renovation
Last year the Perry Hotel, formerly the Gansevoort, was purchased for $230 million. The...

Affordable Luxury Waterfront on Hibiscus Island
A home that is considered affordable in Miami terms for waterfront is generally between...

Bart Reines New Masterpiece Released on the Market
Bart Reines is one of the worlds most impressive modern architects living, and he has just...

New Listing on La Gorce Island
98 La Gorce Court has just been listed for sale. This over 7800 square foot home with 8...