We have a mix of good news and bad news for homeowners. The bad news is that there is a housing shortage, so if you’re looking to move into a new home, it may be harder than you think. The good news is that more people are deciding to stay in their current homes and update them. With home renovations on the rise, you may be wondering which renovations make the most sense for you. (Hint: Hardwood is the easy choice!)
Now Is a Great Time to Update/Remodel
If you’ve been looking for a new home with no luck, now is a great opportunity to invest in your current home, allowing you to enjoy your home while you’re living in it. Then, when it makes sense to move, the right renovations will help you to maximize your return on investment.
If you like your location, you like your neighbors or want to stay in the same school district, this is the perfect opportunity to embrace the times and make your home what you always wanted it to be.
Why Is There a Housing Shortage?
What is going on with the housing market? For starters, there’s a shortage of houses. Why is there a lack of affordable housing? It’s the old supply and demand issue: There is not enough housing supply to meet the demand of those who want to buy. Why?
- New home building slowed down with the pandemic. Shortages in labor and supply-chain disruptions caused materials to become scarce.
- The work-from-home boom meant more people moved to the suburbs reducing availability.
- The Federal Reserve raised short-term interest rates in 2022 and 2023 in response to inflation, making mortgage rates rise. Existing homeowners were reluctant to sell their current homes and take on higher mortgages, leading to an even larger reduction in the supply of existing homes. This forces homebuyers to rely on new home construction inventory which is already behind from the pandemic issues.
With the housing market the way it is, it’s no surprise that renovations are on the rise. Read on to see which renovations are the most popular, and which will get you the most money in your pocket when you do sell.
What to Renovate First
First start with any room that’s a problem. You know your home best. If your kitchen is too small, your bathroom is out of date, or there is a room you just don’t use, these are areas to focus on. Allow yourself to dream a little and utilize your imagination. Ask what would make your home better to live in. Better Home and Gardens listed these three areas first to add the most value to your home:
- Create an Addition
- Redo Your Kitchen
- Renovate a Bathroom
Hardwood Flooring Is the Most Popular Feature
No matter which room you start with, adding wood floors or refinishing existing wood floors is always a smart choice. A recent data analysis by Frontdoor, a one-stop company for home repair and maintenance, found that hardwood flooring is the most sought-after feature after reviewing data on the real estate website Zillow. Frontdoor’s report stated: “Good-looking, durable, and easy to clean, it’s easy to see why hardwood floors are the most desirable home feature of all, with the average hardwood-floored home listing on Zillow racking up 261 views a day. Indeed, so attractive is this feature that over half (54%) of home hunters would pay more for a home with hardwood floors, and 64% of homeowners who install it themselves find it makes being at home more enjoyable.”
Living Rooms and Entryways Need Hardwood Floors
Now that you know the demand for wood floors, hardwood is an easy choice. Now it’s time to start thinking strategically. Wood floors are more expensive than carpet, so if you’re on a tight budget, consider putting wood where it will make the biggest impact on prospective buyers – high-profile areas like the living room and foyer. First impressions are crucial, so the entryway will pack a punch. Luckily, in many homes, the entryway and living room/great room floors are connected, making it an easy choice to do them both. In their report, Frontdoor said, “Specific to living rooms, hardwood flooring also was the most desired feature, ranking higher than an open plan, high ceilings, or even a fireplace.” So even if you can’t afford to put hardwood floors in the entire home, make the living room/great room and the entryway a priority.
Free In-Home Consultation
When it comes to renovations, it’s clear to see that hardwood is the easy choice. The next question is “What kind of hardwoods?” At SVB Wood Floors, we always sit down with you for a free in-home wood floor consultation. We want to make sure you understand all of your options and help you make the best choices for your home, your style, and your budget. We always use our dustless sanding process to keep dust out of your home. Dustless sanding also means no more chemicals to strip the old finish and no strong odors. It’s environmentally friendly and convenient for your family since you won’t have to leave your home.
