The tight housing market has more homeowners renovating current properties, driving up the demand for residential remodeling professionals.
Paired with rising demand, the rising costs of labor and building materials have caused the price for home improvement projects to increase, CNBC reports. But this has not deterred homeowners; a recent report from Harvard’s Joint Center for Housing Studies predicts that the annual growth in homeowner remodeling spending will remain above 7 percent into 2019. Homeowners are especially willing to spend on projects that may increase their home’s resale value.
Homeowners remodeling their kitchens spent 10 percent more than in 2016, and for major kitchen remodels (more than 200 square feet), the spending increased from a $30,000 median renovation in 2016 to $33,000 in 2017.
While kitchens and bathrooms continue to be the most popular upgrades, master bedroom/bathroom suites moved up to the number three spot, overtaking living/family room remodels. The median amount spent on a master bedroom remodel increased 33 percent ($2,000 in 2017 versus $1,500 in 2016). Spending on living/family rooms was unchanged at $3,000.