Ten years ago, the US fell into a deep recession. The real estate market was hit hard. Lake Havasu’s construction industry felt it most of all, with even bigger companies downsizing to try to make it through the tough times. It took us a little longer than much of the rest of the country to bounce back. But bounce back we did. As home values rise, so does the equity in your Havasu home. If you want to make some upgrades or renovations to your property, now would be a great time to tap into some of that equity to get these home improvement projects done. It might help to find out what other homeowners spent their money on before you start tearing down walls.
Home Improvement Snapshot
How Much are Homeowners Spending?
Harvard’s Joint Center for Housing Studies released their report about the Most Popular Remodeling Projects earlier this year. In it, they looked at how much money US homeowners spent in 2017 (the last year that statistics were available). Small projects (those under $10,000) accounted for approximately three-quarters of the home improvement projects completed by 22 million homeowners in 2017. The other one-quarter spent at least $25,000, making up about half of the $233 billion spent that year.
What are They Spending it On?
About half of all projects focused on replacing outdated systems. New construction can’t seem to keep up with current demand. Therefore, homeowners look at updating their current household. Making a home more energy-efficient ranks highest among current homeowners. They also invest in smart-home features. (Helpful tip: when you put your home on the market, a majority of today’s buyers look for energy-efficient and smart-home features, too.)
What were the most popular improvements according to Harvard’s study? Replacing flooring (switching from carpet to wood, for example) ranked highest. Plumbing updates or replacement, replacing windows and/or doors, updating/adding built-in dishwashers or garbage disposals, and replacing outdated water heaters followed. About 9% made improvements to the exterior of their home (driveway, walkways, fencing, landscaping, etc.). Finally, around 8% spent their money on remodeling their kitchen or bathroom, adding a room addition or constructing a porch or deck.
What areas do you plan on updating in your next home improvement project? How much do you expect it to cost? Sound off in the comments below.