Many people are wondering now, with the economy the way it is at the moment, just how the remodeling industry is going to fare. With remodeling costs up and housing prices down, the return on investment recouped from a remodeling project is considerably less than it used to be. So how will this affect the remodeling industry?
With the loan industry tightening up, and credit harder to qualify for, many people are finding it as difficult to qualify for a home equity loan or home equity line of credit as it would be to qualify for a new mortgage. Still, however, for many people, remodeling is still a better option than moving.
Think about this: there are approximately 130 million homes in the US and their average age is over 31 years old. As these 130 million homes continue to age, maintenance, repair, renovation and remodeling will be required.
With global warming continuing to increase, the need to make a home more energy efficient is a major priority both for personal comfort and for resale appeal. Things like putting in insulation and energy efficient windows, and air conditioning for homes that weren’t built with AC are becoming necessary.
Other things, such as the need to fix a leaking roof, or other items that are in disrepair will still be remodeling and home improvement projects that homeowners will have to do. The bottom line is that work that needs to be done usually gets done and as homes continue to age there will also continue to be plenty of things that need upkeep, repair and remodeling.
Remodeling though is not always just about maintaining your investment, often remodeling and renovating are emotionally motivated. The home is a very personal place and reflects your personality and design and way of living. Also with gas prices and the economy the way they are at the moment, many are doing more entertaining at home instead of going out.
Some of the biggest trends in remodeling now are actually exterior remodeling, including the addition of decks, patios, outdoor living rooms with fireplaces and Jacuzzi’s, outdoor entertainment centers complete with even flat-screen TVs believe it or not and then obviously outdoor kitchens are a really hot trend at the moment and even pizza ovens too.
No matter what stage the economy or housing market is in, remodeling is something that will always need to be done by many many people for a multitude of reasons and is definitely here to stay.
Rebecca Noel is a licensed real estate agent and real estate investor. Remodeling houses and home improvement diy are her area of interest. Find out insider information that will save you $1000’s on materials and help you get your remodeling projects done weeks faster at Remodeling Recon.