Home Improvements Soar as a Smart Choice During Recovery

The “Great Recession” of 2008 not only caused a major drop in home sales. It also reduced the number of home improvement projects being started in the United States.

As the economy has rebounded, so has the number of calls to Sir Home Improvement and other contractors to start home improvement projects. Not only does that mean more employment for workers in the building trades, it also means more choices for homeowners as our business is flourishing.

Before the recession, home improvement spending peaked in 2006 at $145 billion. The remodeling market then dropped 13 percent by 2008 and stayed at that level through 2009. It was a significant loss of business, but the remodeling market faired much better than new home construction, which dropped 60 percent during that same time frame, according to Harvard’s Joint Center for Housing Studies. And while new home construction still has a ways to go to reach pre-recession levels, home improvement projects are set to reach all-time-record spending levels in the U.S. In 2015.

This shouldn’t be a great surprise. Home improvement has always been a good investment. During the economic downturn, many people who might have planned to buy new houses instead decided to improve their existing homes for less cost and less risk. Many state and federal programs encouraged energy-efficient upgrades, resulting in savings for utility costs. Home improvement was an economical alternative that still improved a family’s lifestyle.

Most of the home improvements made during the low point of the recession centered on necessary repairs and upgrades. But with a strengthening economy, discretionary home improvements rose in this country by nearly $6 billion during 2011 to 2013. With home values also on the rise, home improvements you do now bring you a stronger return on your investment in the value of your home.

What it adds up to is home improvement can be a solid investment during bad times, and even a better investment when times are good. If you’re thinking whether it’s a good time to buy a new home, you may want to think carefully about your decision. There may not be an easy answer. Everyone’s situation is different. But you owe yourself the chance to look carefully at your current residence, then ask yourself this question: Do you want a new home, or do you want a better home?

Home Improvements Soar as a Smart Choice During Recovery was first seen on SIR Home Improvements