Staying put: Why more Americans are choosing home improvement over moving
(InvestigateTV) — Amid high interest rates and economic uncertainty, many Americans are finding value in enhancing their current homes instead of moving. This growing trend has seen homeowners increasingly turn to professionals to execute their renovation projects.
Between 2021 and 2023, American homeowners spent about $827 billion on home improvement projects—a 33% increase compared to prior years.
Holden Lewis, a mortgage and real estate expert at NerdWallet, pointed out that this growth isn’t solely due to rising costs of materials and labor.
“The most expensive projects are kitchen renovations and additions,” Lewis said. “And we’re talking more than $40,000 is typical for that kind of work.”
One major reason for this surge in home improvement activity is “rate lock-in.” Homeowners with historically low mortgage rates are reluctant to sell their homes and take on higher interest rates for a new property. Instead, they’re choosing to invest in upgrades.
“Where people just have a really, really low interest rate on their mortgage and they say I’m not getting out of the house,” Lewis explained. “So, instead of selling the house and moving to a nicer one, they’re staying in their homes and making it nicer.”
If you’re considering a home improvement project, Lewis emphasized the importance of thorough preparation:
- Get recommendations: Start by asking neighbors and friends for referrals to reliable contractors.
- Check references: Always the credentials and track records of professionals before hiring them.
- Gather multiple quotes: It’s essential to obtain more than one estimate for your project. While inviting multiple contractors into your home may seem overwhelming, it ensures you don’t overpay for the job.
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