Why Homeowners Are Remodeling Instead of Buying New Homes

New York’s home improvement market is the largest among metro areas. In 2017, it accounted for $12.2 billion—which was approximately 45% greater than the next largest markets in Los Angeles ($8.6 billion) and Chicago ($8.2 billion). The data came from an analysis of 25 major metro areas, which was published in the latest American Housing Survey (AHS).

Knockout Renovation®, a trusted home remodeler in the area, shares more information about this. We also discuss the reasons why homeowners are opting to remodel instead of buying homes.

Remodeling Markets in Other Metro Areas

Home improvement spending varies among the 25 metro areas, from about $1 billion in places like Las Vegas, Oklahoma City, Birmingham, Rochester and Richmond to $6-12 billion in Dallas, Los Angeles, Chicago, New York and Washington, DC.

Meanwhile, the average home improvement spending per owner is at $3,800 in the larger remodeling markets and $3,400 in the smaller markets. However, it should also be noted that the larger markets have more homeowners, at around 2.2 million, while each of the smaller markets has approximately 330,000 owners.

Why Homeowners Are Opting to Remodel Rather Than Buy Homes

One reason for the significant variation in the average home improvement expenditure is the difference in house price appreciation. Homeowners in markets with stronger price appreciation tend to spend more on home improvements, while those in metros where home prices have not yet recovered to prior peaks spend less.

Another factor is the aging of both the housing stock and the population, which has resulted in bigger spending on the replacement of worn home systems and components. In metros with old housing stocks and harsh winter weather conditions, most of the improvements done are for improving the energy efficiency of homes.

Knockout Renovation provides an array of services including bathroom and kitchen remodeling, apartment remodeling, and others. Call us at (212) 599-5060 or fill out our contact form to request a free consultation. We’re NYC specialists offering our services to homeowners in New York City, especially those in Brooklyn and Manhattan.