The country is currently in a real housing boom due to increased demand and low inventory, but homeowners need to prepare for a boom in home remodeling which is a feeder of many of the current housing issues. This surge in remodeling will add additional pressure on labor and supply which will result in much longer lead times and an extended time to complete remodels.
Here are the top 5 reasons why remodeling is about to boom:
The main reason for the increase in remodeling is money. For most homeowners, remodeling will be their only choice to affordably increase space because much higher pricing for new and existing homes will force people to stay put. Many homeowners purchased their homes after the bust of 2008 when homes were sold below construction costs. Even though many homes would sell for huge profits today, the homeowner will find that the new house they want to buy is probably smaller and comes with less amenities. Homes bought prior to 2019 are of huge value in this market and finding an affordable upgraded home even with the improved equity on many homes will be almost impossible.
The overall age of homes in America is another reason for a remodeling boom. According to a recent survey by the United States Census Department, a whopping 52 percent of all the homes in the country are older than 39 years. This means that many homes are energy inefficient with substandard building methods, and also have outdated décor. These older homes need a lot of updates and remodeling.
The cost of housing in America will speed up gentrification. This is the purchasing of homes in predominately low-income neighborhoods by affluent buyers who will remodel the homes and take over the neighborhoods. The days of racially and culturally segregated neighborhoods are ending as Americans diversify. The rehabilitation of these sections of towns will require both remodels and major infrastructure upgrades. This phenomenon is happening across America, and it is a cheap way for more affluent homebuyers to get a home.
Another major reason for a boom in remodeling is the COVID-19 pandemic. The home is no longer just a place where a family eats and sleeps. The home is now an office for many or a classroom for others. The rising costs of dining out and other social activities is forcing people to have social gatherings at home. The home now serves multiple purposes for the homeowner, and the investments in home offices and large areas for socializing are a growing trend. As this pandemic extends, expect systemic changes on how the function of a home is viewed and what is required of a home.
The final reason for a boom in remodeling is simple - homeowners want more luxury without having to buy a bigger home. Expect homeowners in smaller homes to upgrade kitchens and baths to spaces normally seen in more expensive homes. Across America, homeowners are ripping out builder-grade cabinets and appliances for newer, finer products which will give them the feel of a new home. The number of bathroom remodels are growing as old tubs and showers are being removed for luxury facilities with modern rainfall faucets and tiles. Homeowners will remodel homes to get the luxury they believe they deserve.
This boom in remodeling is advantageous as most of these investments are sound because the starting cost of the older home makes it affordable. Many will find that remodeling a home can solve just about every new home desire if the homeowner’s requirements are met.
Hold on, get ready for a boom in home remodeling.
Don Magruder is the CEO of Ro-Mac Lumber & Supply, Inc., and he is also the host of the “Around the House” Show which can be seen at AroundtheHouse.TV.