How a Steady Economy Drives a Spike in Kitchen and Bathroom Remodeling
Remodeling projects typically get set on the backburner when the economy is soft, as most remodels are “wants” as opposed to “needs.” However, now that it seems like the recession is over, homeowners are feeling confident enough to take on those projects they didn’t have the money for in earlier years, such as complete bathroom and kitchen remodeling. This is occurring for two reasons: homeowners feel richer, and banks feel more generous.
In a recessed economy, home values were lower than they’ve ever been. Banks didn’t feel comfortable handing out loans for homes that were worth less than what was owed on them, leaving homeowners without the money to fund a remodeling project. However, as the economy has steadily improved, equity for many homeowners has been restored. Now, lenders are not only willing to hand out loans for kitchen and bathroom remodeling, but they are actually encouraging homeowners to take on more and bigger projects, as that means more money for them if the homeowner plans to sell.
A newly remodeled home is worth much more in today’s market than a fixer-upper. For this reason, many homeowners invest in whole-room remodels before putting their home on the market, starting with a kitchen remodeling project. The kitchen is the room that new homebuyers look at first. People want a kitchen that is open, airy and modern—not closed off and dated. By investing in a new kitchen, homeowners can increase the value of their home by as much as $40,000, while the cost of a full-scale remodel is half that. Bathroom remodeling is usually the second project undertake, as it can increase the resale value of a home by as much as $15,000.
As the economy continues to grow, remodeling contractors will continue to see an increase in requests for bathroom and kitchen remodeling, as they are two lifestyle investments that are sure to see a big return. If you want to improve the look and feel of your home, or if you want to increase its, reach out to Cosgrove & Sons today!