You've probably noticed the sudden crop of construction dumpsters in your neighbors' driveways. High prices and stubborn borrowing costs make moving painfully expensive right now. So, Americans are staying put. We're fixing up what we already own. But as homeowners pivot from house hunting to kitchen gutting, getting a project across the finish line takes a lot more planning than it used to.
The mortgage trap turns into a remodeling boom
It's easy to see why nobody is packing boxes. Millions of us are sitting on old loans with interest rates between 3% to 4%. That makes taking on a new mortgage at today's rates a tough pill to swallow. Fixing up the current house is now the only realistic financial option for many families, Kiplinger reports.
Instead of fighting over a historically thin supply of listings, seven in 10 homeowners expect to complete a remodeling project in the next two years. They're trading the stress of bidding wars for the stress of drywall dust.
Where the smart money is going
If you're going to stay in your home for another decade, the projects that actually pay off look different now. Forget purely cosmetic flips. Think about upgrades that make a house livable for the long haul.
Aging-in-place features are huge right now. That means swapping standard tubs for walk-in showers or adding zero-step entryways. When it comes to pure return on investment, the biggest winners are deeply practical. Replacing garage doors and upgrading siding top the list, along with backup power generators. Whatever you decide to tackle, expect to pay up front for the planning phase. The average cost for an architect or design firm is about $6,600 before a single hammer swings.
What's happening in your state
The remodeling rush looks a little different depending on your zip code.
In Massachusetts, families are opting for full additions simply because they can’t find another place to go.
Out in Oregon, contractors are urging clients to slow down. The smartest approach right now is to map out a clear plan before tearing into walls.
Down in Virginia, local businesses like Elegant Kitchen and Bath are expanding their design services just to handle the crush of homeowners begging for digital layouts and premium stone countertops, according to USA Today.
The bottom line for you
- Never assume the first quote is the final price. Pad your budget by an extra 20% to cover surprise expenses like hidden water damage. Keep that buffer in mind whenever you're hiring contractors and budgeting for what things cost.
- If you're updating a bathroom or kitchen, think about how your mobility might change over the coming years. A walk-in shower costs a bit more up front, but it's one of the smartest interior updates you can make to stay put for the long haul.