Home remodeling continues to increase in frequency as more Baby Boomers are electing to age in place and even Gen Xers opt to improve their current homes rather than trading up to newer ones. In fact, home remodeling has surged by about 30% in the past five years, according to the latest report from BuildFax, a provider of property condition and history insights for insurance and financial institutions.
“Remodeling alone is up 30% in the last five years,” BuildFax COO Jonathan Kanarek said. “The slight dip in remodeling volume may be an early indicator of a leveling off of the very hot housing construction market we’ve seen in the last few years. We will be keeping a close eye in the coming months to look for the leveling off trend or a further softening.”
The market continues to show signs of homeowners shifting toward improving their current home, rather than buying a new one. The Home Depot just reported a surge in its sales during the second quarter of 2018 as more homeowners choose to age in place and renovate their homes rather than move into a newer home.
“We are not seeing a large bounce back from the decline in June housing authorizations,” Kanarek said. “However, we have to remember that all three categories, new housing, remodels, and maintenance, are at historically high levels.”
But even as the home improvement sector rises, the construction industry continues to struggle. According to data from the National Association of Home Builders, as the construction industry fails to keep up, and the median age of owner-occupied homes increases, are the main factors causing the current surge in the remodeling market.
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