Renovate or relocate? Priced out of perfect homes, homeowners are choosing to create them instead
The pandemic has made a lot of people reconsider where they live and what they want and need in a home.
In fact, nearly 40% of Americans are considering a move this year, and a third say the pandemic completely changed what they want in a house, according to a survey by Lending Tree.
If buying a new home isn’t an option for you and you’re finding your house doesn’t suit your needs anymore, you’ve probably considered renovating.
Maybe you could take out a wall and create a more open space. Maybe refinishing the basement wouldn’t be as hard as getting involved in the hectic housing market.
But there’s a lot to consider if you’re weighing your options between buying a new house and taking on a new renovation project.
If you’re thinking of renovating, you’re not alone
The housing market is a confusing place right now. More houses are finally becoming available, but prices are still up 10% over last year, according to Redfin. And with interest rates rising, it isn’t just hard getting on the property ladder now, it’s tough trying to move up it as well.
“It’s so hard to actually find the perfect house in the perfect neighborhood,” says Eric Finnegan, vice president of research and demographics at John Burns Real Estate Consulting, which delivers analysis on the housing market to clients such as builders, realtors and investors.
“And that’s just gotten harder since COVID. And for a bunch of reasons, it’s probably going to be hard for the next three to five years.”
And despite the frenzied market – or because of it – many people are putting money into remodeling their homes.
Renovation activity and spending hit a four-year high in 2021, according Houzz’s U.S. Houzz & Home Study: Renovation Trends. More than half of homeowners renovated last year, pushing the median spend on renos up 20% to $18,000.
In 2020, Americans put $420 billion into remodeling their homes, according to the National Association of Realtors and the National Association of the Remodelers Industry 2022 Remodeling Impact Report.
And millennials are playing a big part in that.
More millenials are choosing to renovate
One of the ways millennials are getting the homes they want is by creating them.
Normally, an entry level buyer would trade up to a larger home after about five to seven …….