As a homeowner, you have probably considered whether or not to renovate your property. Interiors become outdated, older homes encounter maintenance issues, and new design trends take over the imagination. Over the last several years, the cost of building materials has risen due to increased demand, spurred on by the remodeling boom.
But what is the cause of this sudden urge to renovate that homeowners are experiencing, and why is it happening now? A look at the current makeup of housing stock across the country provides an answer.
Owner-Occupied Housing Stock is Aging
When you look at the supply of constructed homes currently occupied in the United States, over 50% were built before 1980. Additionally, the median age of owner-occupied homes is 39 years. After the housing crisis in 2008, fewer new homes were being constructed. This has caused a long-term shortage of housing stock that has yet to be changed to this day. All this is to say that many homes are getting pretty old, and therefore, outdated.
Millennials Are Leading the Remodeling Boom
With so many aging houses, choosing to renovate is the only way to update a home for better functionality and longevity. The older the model, the more remodeling it may require to keep residents comfortable and make it a viable sale in the future. This trend is being led by the 25-44 age group, as many in this population have had to invest in older constructions due to limited inventory. Contractors are helping these homeowners with larger projects, but the shift towards DIY remodeling means that many residents are doing the work themselves to update their home.
What Does this Mean for Prospective Buyers?
It is no secret that the housing market has been extremely volatile over the last couple of years, and the Central New York area is no exception. Though the long-term outlook may provide an eventual balancing in asking prices, homes are still selling for much more than the initial value.
The good news is that with so many homeowners investing in renovations, plenty of homes have the modern upgrades that you may be looking for as a buyer. Residents of CNY are seeing the value in remodeling their property with selling in mind, and the benefit to buyers is that their investments are equipped with functionality that will last for years to come.
Bathrooms have updated fixtures. Kitchens have new appliances that will last. Interiors are adopting smart home technologies for more convenient living. Unique design trends are reflecting a modern atmosphere that you can fall in love with. These upgrades may be moving initial prices upward, but they are creating less work for buyers after closing.
What About Sellers?
This trend goes both ways. Though sellers are having an easier time finding buyers in this market, making upgrades to your home, especially if it is a little on the older side, can drive the asking price higher. After the sale, you can walk away with more if you have made significant upgrades to the property, setting you up well for a new home purchase, the next big investment, or even retirement.
While there will always be buyers that love the idea of a fixer-upper, most people want something that is close to move-in ready to cut down on the amount of time spent fixing the property before they arrive. Make your aging home more attractive to buyers by renovating and updating with the future in mind.
Let’s Find the Right Home for You
One of my favorite aspects of working in real estate is seeing an ecstatic buyer close on their dream home. Whether you have plans to renovate the property yourself or have fallen in love with the previous owner’s upgrades, I would love to help you find a new place to call home. Or, we can talk about how to boost your home’s sale price with the right remodeling plan.
Give me a shout and let’s start the conversation!