Americans aren't remodeling at the rate we saw during covid but the renovation boom is still going strong and could pick up again in 2025.
According to a recent Leading Indicator of Remodeling Activity report released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University, home improvement spending is expected to go up 1.2% from $472 billion to $477 billion by the third quarter. During the years of covid, homeowners were spending more time and money to improve the appearance and maintenance of their homes. Low interest rates helped tremendously too.
Jim Dutton, Host of Texas Home Improvement, said the low interest rates on a mortgage that people grabbed a few years ago have been a key difference for people in deciding whether to renovate or not.
"People bought houses at low interest rates and so if they go to sell and move into an upgraded or larger house, the interest rates are so much higher now that they just renovate what they have," Dutton explained.
Aside from the obvious home projects where people redo their outdated bathroom or kitchen, Dutton said a lot of money lately has been put down on exterior work of a home.
"Some of the big things are siding and backyard renovations that visually make the house more pleasing," said Dutton.
Time alone improves the value of a home. As interest rates come down, Dutton expects more people to sell their homes too and the renovated homes will then have more curb appeal, leading to a quicker sale.
Photo: E+