by Hans Eisenbeis
WHAT’S HAPPENING
- Realtors keep tabs on the sorts of upgrades that will improve a home’s resale value. Kitchens and bathrooms, for example, are often thought to be valuable improvements when it comes time to sell. But research now shows typical improvement projects are giving less return on investment, and more “live-in value” (ConsumerReports.org 4.30.10).
- In other words, consumers aren’t making huge capital investments on their homes with an eye toward making more money. Rather, they’re remodeling with the idea of improving their quality of life while they stay put.
WHAT THIS MEANS TO BUSINESS
- With a deflating housing market (still!), it’s a bad time to buy or sell. That means most homeowners are staying put, and those with extra disposable income or access to credit can make the stay better with less expensive but still gratifying improvements.
- Some of this remodeling may help accommodate the rise in multi-generational living arrangements which we’ve documented during the Great Recession.
RESOURCES
