Why Homeowners Are Choosing to Remodel Instead of Buying New
Homeowners across the country looking for a housing change are faced with a dilemma: Should they purchase a new home or remodel their current home?
Fewer and fewer people are purchasing homes due to a wildly expensive and competitive housing market. Instead, they’re turning to remodeling projects, which allow homeowners to save money, increase resale value, and customize their home to make it just right for their family. And, most importantly, they’re looking for experienced professionals to help get the job done.
Now is the time to consider how you can join the remodeling and refinishing industry to take advantage of this hot market. At NAPCO, we’re ready to help you jump into a new career in kitchen and bath refinishing so you can start helping homeowners remodel their property.
3 Reasons People Aren’t Buying New Homes
Buying a new home quickly gets expensive. With rising mortgage rates, inflated home prices, and a lack of available real estate, it’s no surprise that people are taking a break from the housing market.
1. Increasing Mortgage Rates
Mortgage rates are higher than they have been in a decade. This April, the 30-year fixed rate mortgage average hit 5.28%—almost two percentage points higher than at the beginning of the year. The average monthly mortgage payment required to purchase a home in the United States dramatically increased by 55% compared to rates in early 2021. These mortgage rates have made it more difficult than ever for people be able to afford a new home.
2. Housing Prices Are Higher Than Ever
Home prices continue to rise. The median home sale price rose 15% from a year ago to about $375,300. Even more concerning is that this increase can be spotted in every region of the United States. Housing prices are higher than ever, and they don’t show any signs of stopping.
3. Shortage of Homes for Sale
Supply and demand are driving up prices—there simply aren’t enough homes on the market to meet the needs of everyone who wants to purchase one.
Homes go on the market because somebody sells an old home or builds a new one. However, fewer people overall are selling their houses, and at the same time, new homes aren’t being built quickly enough to meet increased demand for houses. People simply can’t find a new house that suits their family.
5 Benefits of Remodeling
Instead of battling a competitive and expensive housing market, homeowners are looking toward remodeling, refinishing, or upgrading their homes. With so many surprising benefits of remodeling, it makes the decision of whether to stay in their home or take a gamble on the market an easy one.
1. Saves Money
The costs associated with remodeling a home are a fraction of what it would take to purchase a new home. Additionally, upgrading your home gives people the opportunity to invest in high quality materials that will last longer, meaning they won’t have to replace them as often. Remodeling or refinishing can save homeowners a significant amount of money in the long run.
2. Increases the Value of the Home
Even if they don’t have plans to sell their house anytime soon, it’s important for homeowners to consider that a remodeling project will increase the value of their home.
When it comes to resale value, anything from minor bathroom upgrades to a completely renovated kitchen can raise the asking price. Fixing what is broken, renovating what needs a refresh, and improving the appearance of the property can all help.
3. Improves Efficiency & Reduces the Cost of Utilities
By upgrading their home with energy-efficient appliances, better insulation, and improved windows, homeowners can significantly lower the cost of their utility bill. They are on the hunt for opportunities to make eco-friendly choices throughout their remodel that will help them use less gas, electricity, heat, and air conditioning.
4. New Look & Feel
Housing goes in and out of style just like any other trend, and if people have been staring at the same outdated interior for a while, they may be considering a remodel. Occasionally updating a home is key to keeping up with modern styles. There are also endless opportunities to incorporate timeless design trends into every aspect of the home.
Homeowners want their house to leave a good and lasting impression. A home remodeling project allows them to create just the right home for their style.
5. Get Exactly What They Want
Remodeling their house is a chance for homeowners to customize their home to meet their exact specifications. They likely have a vision of their perfect home—upgrading and remodeling their house can make those dreams a reality. Whether they want a new floor plan, a gourmet kitchen, a walk-in closet, or a spa-inspired bathroom, their home renovation project can help create a home that fits their family’s needs.
Take Advantage of the Increasing Demand for Remodeling by Offering Kitchen & Bath Refinishing
With the growing demands for remodeling and refinishing services among homeowners, there is an increased need for experienced professional refinishers.