IS NOW THE TIME TO BUILD NEW OR REMODEL?

Author: Jenny Cazares

Should I Build New or Remodel?

That’s a great question. There have been market changes over the past year and a half that may affect the decision you make. Consumers are facing significant increases in the costs of goods & services in all sectors of the marketplace. This has especially held true when it comes to building costs and materials.

The new home construction market pricing isn’t what used to be. Overall construction costs have increased tremendously, on the very low end by 20%, and it only goes up from there. Builders are having difficulty getting materials to the job site. They are seeing delays in receiving building materials that they use on a daily basis. These include framing lumber, doors, windows, fencing, and even appliances.

The article Rising Costs of Building & Materials compiled by the National Association of Home Builders describes how single-family home builders are reacting to recent shortages and price increases in building materials. This is important to consider when you’re trying to determine if building new or a kitchen remodel is in your best interest.

What is my Return on Investment if I Remodel my Kitchen?

We are told time and time again that remodeling a kitchen (over other spaces in the home) will bring a homeowner the highest return for their remodeling dollars. A kitchen remodel could bring a return value of 70% or more when you sell your home. We can see why this is, as the kitchen has become the “central focus” in every home in America. 

It’s no coincidence that architects and builders have shifted their designs to accommodate open floor plans. Families want to be able to keep an eye on little ones. Homeowners also want more of an open flow to entertain guests, and share in everyday experiences. It’s the one place where we gather to have a snack, prepare meals, discuss our day, and just be together. It is the primary location where we savor some of our fondest memories. 

If you’re happy with your current home and feel that a remodel would make the space more enjoyable and functional, then remodeling may be the best option for you and your family. Also, the costs for a kitchen remodel would be substantially less than building new construction. Many of us dread all that is involved in moving and only contemplate moving if due to a job change, change in family size, or retirement. Research has proven that most homeowners love spending time at home and that most homeowners have increased “joy” after their remodel is complete.

If you do decide to sell your home down the road, buyers are always searching for homes with updated kitchens. An updated kitchen can often bring your home into the spotlight with the greatest return.