flexiblefullpage - default
Currently Reading

Remodeling Demand Surges as Homeowners Choose Not to Sell

Remodeling

Remodeling Demand Surges as Homeowners Choose Not to Sell

Rising mortgage rates and waning inventory are creating a financial incentive for current homeowners to stay in place and remodel 

 


April 25, 2022
Home exterior remodeling
Image: Stock.adobe.com

Remodeling demand is on the rise as unfavorable buying conditions cause many sellers to hold their upper ground and give their existing homes a makeover. Home equity per owner reached a record high of $315K after an inflation-adjusted gain of $95,000 in 2019, incentivizing homeowners to build personal wealth in a high-cost market. 

Also, with few “trade-up” homes available and mortgage rates on the rise, would-be buyers are instead opting to customize, update, and upgrade rather than entering into a competitive buying pool with a lack of available inventory nationwide. A rise in remodeling projects is also driving up costs for building materials, which have increased by 23% in just the last year, John Burns Real Estate Consulting reports.

At 1.6 months of supply, the current inventory of existing homes for sale is at the lowest level in history, severely limiting choices for would-be home buyers. To accommodate demand for additional space and functionality, particularly with today’s surge in work-from-home trends, big remodeling projects have been surging.

Remodelers have never been busier. 48% report doing more projects than one year ago, and 65% report that the projects are larger than one year ago.

Read more

Related Stories

Remodeling

Remodeling Sector Eyes Slower Growth Ahead in 2023

Affordability concerns and moderating home price appreciation are causing a slowdown in the remodeling sector, though spending is expected to remain historically high into the year ahead

Remodeling

Remodelers Are Finding New Ways to Adapt to a Record-Breaking Housing Market

Waning demand for home purchases means more projects for remodelers, but fulfilling a steady backlog of projects is proving to be a challenge amid inflated materials costs and labor shortages

Energy Efficiency

Energy Retrofits Offer a Practical Way for the Remodeling Sector to Practice Sustainability

Energy retrofits for existing homes are increasingly attainable, but their implementation relies on a fragmented and slightly antiquated remodeling sector

Advertisement
boombox1 -
Advertisement
native1 - default

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.