More Homeowners Are Choosing to Remodel Existing Homes Rather Than Buying New

As home prices continue to increase, renovations of existing homes are becoming a popular option among homeowners. According to Fox Business, almost 63% of homeowners would rather renovate their current homes than buy new ones. However, about one-third of those surveyed would still prefer to purchase a new home instead of remodeling. The primary reason homeowners avoid remodeling is the high cost, and about 56% of homeowners who renovate exceed their budgets.

Renovations and remodels are getting less expensive as the year goes on. Annual spending for improvements and repairs are projected to go down throughout the year and into 2025, according to the Leading Indicator of Remodeling Activity (LIRA), released by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University. 

"Residential remodeling is expected to benefit from the rebounding housing market and stabilizing material costs as we move into next year," said Carlos Martín, director of the Remodeling Futures Program at the center.

The amount homeowners will spend on renovations is expected to decline by more than 7% by the third quarter of this year. And costs will likely continue to decline slowly into the beginning of 2025.

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