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Thinking about renovating your home? You are not alone, according to industry experts. While home improvement projects stalled in the past few years since the heart of the pandemic, analysts are now predicting a home-renovation resurgence.
Much of this is linked to the lower interest rates being forecasted at the end of 2024. It is anticipated that “lower interest rates will fuel a rebound next year in spending on new kitchens, bathrooms, and decks, reviving a reliable source of economic activity and stock-market gains,” according to The Wall Street Journal. This growth is expected to peak in a few months, especially during the summer.
This sentiment was echoed at the recent 2024 Home Improvement Research Institute (HIRI) Summit in which leading industry experts highlighted key trends, including a surge in remodeling activity due to deferred spending and pent-up demand.
Learn why this is happening now and how you can get on board with this trend by planning your next home renovation.
Lower interest rates are expected to spark a renovation rebound.
Several construction experts we spoke with confirmed this shift in home remodeling projects and why it is happening now. “We’re definitely noticing a resurgence in the home renovation market, and it’s evident both in the number of inquiries and the scope of projects people are undertaking,” says Dave Marrs, national contractor for Re-Bath and co-star of HGTV’s Fixer to Fabulous.
“Post-pandemic, many homeowners have reassessed the importance of their living spaces, and there’s been an increased focus on creating comfortable, functional, and aesthetically pleasing environments,” says Marrs. Kitchens and bathrooms are at the top of the list, but he is also seeing demand for larger transformations, like living areas and outdoor spaces.
Jenny He, a licensed contractor, home improvement and landscaping expert, and the co-founder and CEO of the outdoor construction company Ergeon, agrees. “Lower interest rates in the future make it natural for more homeowners to invest in outdoor living spaces,” she says. “Outdoor renovation projects are up at Ergeon, and they’re not slowing down. Right now, there’s a strong push to improve outdoor spaces. People appreciate a functional, beautiful outdoor space, whether it’s a new deck or privacy fence,” He says.
With falling interest rates, it’s easier for people to afford home improvement spending. Indeed, more homeowners are borrowing against the rising value of their properties. The equity that they accumulated due to rising property values has left them with a cushion to invest in home renovations.
Home sales also play a role.
Other factors at play include a reduction in home sales as well as an aging housing stock, which means there are more people living in older homes that could benefit from a facelift. According to the National Association of Home Builders (NAHB), the average age of houses grew from 31 years in 2005 to 41 years in 2023. As more homes age, they no longer meet current building codes or lifestyle needs, prompting homeowners to consider renovating.
Home renovations benefit homeowners.
By renovating your home, you can extend the time you live there and enjoy your hand-picked upgrades, while also increasing the property value of your home for future resale. “Beyond lower interest rates, homeowners should consider the long-term value added to their homes and the immediate benefits of improved functionality and comfort,” says Jerome Bertuglia, owner of Prime Homes, Inc. in West Hartford, Connecticut.
Renovations are a wise investment in today’s competitive housing market, says Marrs. “Remodeling’s 2024 Cost vs. Value Report cites a national average recoup value of over 70 percent for a mid-range bathroom remodel,” he says.
Marrs also believes that as sustainability becomes a priority, homeowners are more motivated to make energy-efficient updates. Additionally, energy-efficient home improvement projects might qualify for tax benefits to save hundreds or thousands of dollars.
As an expert in outdoor construction, Jenny He believes that renovations can greatly increase a home’s value. “I know from experience that a well-built fence or deck can instantly increase curb appeal and property value,” she says.
Fall to early winter is an ideal time for renovations.
Most experts agree that fall and early winter are excellent times to renovate your home. This is when contractors might have more availability after the busy summer season, says Marrs. “Many homeowners tend to wait for spring, so the cooler months can offer flexibility in scheduling, often without the high demand that comes with peak renovation seasons,” says Marrs. It’s a great time to tackle indoor projects—especially before the holiday—so you’re ready to host your guests.
This season is also a good time to take advantage of discounts. “Demand often decreases slightly, making it easier to schedule contractors and potentially secure better pricing,” says Bertuglia.
It’s even possible to complete outdoor projects during this cooler time of year. “People often assume outdoor construction slows as the weather cools, but that’s not true,” notes He. “Homeowners can start projects without the spring and summer rush. They have been surprised at how quickly we could get things moving this time of year, and they love having their new fence or deck ready for the warmer months.”
Additional benefits of remodeling in fall and early winter include:
- Availability of materials in stock since fewer construction projects are going on in general.
- A comfortable climate—not too hot or too cold yet.
- Avoiding high humidity that can damage construction materials.
- Planning can begin in the summer during typical downtimes, giving time to focus on choosing materials.
- Between summer and the holiday season tends to be a quieter time of year.
- Permit approvals from local government offices move more quickly since they tend to not be as busy with requests.
