Rather than selling in the scorching housing market of the Mile High City, these homeowners are using their boosted equity to bankroll home improvements.
Homeowners, especially in the Western U.S. with higher home equity, are starting more home projects than in years past, per survey data from HomeAdvisor, with Boomers and Millennials leading the way—the former more likely to hire a pro, the latter more likely to do it themselves, The Denver Post reports. HomeAdvisor chief economist Brad Hunter says Millennials are more likely to stay home and increase remodeling spending on favorite projects like finished basements, which they’re twice as likely to take on as are Boomers. “My hypothesis is they may have bought a small starter home a couple years ago, it has gone up in value, so they tap into their equity and add space in a home they’re already outgrowing."
Orley Paxton, owner of Handyman Hub that connects homeowners with the right contractors, said that improvements tend to be the more cost effective course for those looking to remain in the Denver-area market. “If you sell, and you want an upgrade, you’re buying into an expensive housing market as well, so you’re not going to get a lot,” he said. “We’re finding that, as prices continue to escalate, you can spend $15-20,000 on a couple of bathrooms and you’ve got a nice house again and can enjoy it.”
