Many homeowners are choosing remodeling over relocation.
Spending on renovations may rise to a record amount this year, Investors Business Daily reports, as homeowners with low interest rates opt to stay put and invest in home improvement instead.
According to a report released Thursday by Harvard University’s Joint Center for Housing Studies, other factors leading to the boost in the $300 billion home improvement industry include stimulus programs that encourage energy efficiency upgrades and surging demand for rentals, spurring landlords to invest in their properties.
Owners who spend the most on remodeling tend to be those in hot housing markets such as Washington D.C., Boston, and New York. The report says that spending in Washington, Los Angeles, Chicago, and Philadelphia ranged from $4 billion to $7 billion.
Home-improvement chains Lowe’s and Home Depot have also benefitted from this remodeling boom, according to Investors Business Daily, as their shares soared 47 percent and 33 percent respectively in the past year.