Do Renovations Increase Property Value?: Homeowners Prioritize Long-term Living with Recent Home Upgrades

Not long ago, many homeowners renovated with an eye toward selling. That’s changed, according to the 2023 U.S. Houzz & Home Study, which found that 61% of homeowners intend to stay in their homes for 11 years. 

It found that this year, just 6% of homeowners are renovating with the intention of selling, compared to 12% in 2018. 

In addition, among all the generations, baby boomers are leading the renovation activity (59%), and during 2022 spent a median of $24,000. 

Much of that renovation activity in 2022 was done to bring aging homes up to date with projects that included upgrades to plumbing (29%), electrical (28%), and home automation (25%). Also, one in five homeowners made cooling and heating system upgrades, spending a median of $5,500 and $5,000, respectively. 

Still, renovation of interior spaces is the most popular area for upgrades (72%), with kitchen and bathroom, remodels being the top projects. 

In 2022, 28% of homeowners upgraded their kitchen, spending a median of $20,000, while 25% chose to renovate their primary bathroom, spending a median of $13,500.

Houzz says such renovations come with challenges, including finding the right service providers (33%) and products (28%), staying on budget (27%), and staying on schedule (21%). 
During 2023, 53% of homeowners plan to continue renovating their homes, with a median planned spend of $15,000. Additionally, 35% of homeowners plan to make repairs during the same period.

Now, if you’re trying to decide if these renovations could benefit you in a sale, request a free comprehensive property valuation and market analysis. One of the important aspects of a CMA is to help give sellers as much data as possible so they can work with their Realtor to set a fair asking price to deliver you the best offer(s), that command as much money as possible, in as little time as possible. If you have receipts with prices and dates for renovations, your agent can use those to help you justify a higher listing price. This is because location is everything in real estate. The best house in the worst neighborhood will only be hindered by the neighborhood values, while the worst house in the best neighborhood will also benefit in the same way. That being said, those renovations you made over the years matter and may benefit you in a sale, but the only way to find out where you could stand in today’s market is to request your free property valuation report, so what are you waiting for? Go get one now!

See the complete report at https://st.hzcdn.com/static/econ/2023-US-Houzz&Home-Study.pdf.