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With inflation at a 41-year high in May and rising interest rates and mortgages, buying a home has become more expensive for many Americans.
And now it seems that repairing one is even more expensive, especially for new home buyers, a new study has found.
A 2022 Houzz & Home survey of 70,000 U.S. respondents found homeowners planning to spend $ 15,000 to repair their homes this year.
That’s a four-year high and a 50% jump from the $ 10,000 the Americans have spent in the last three years.
The survey shows that in 2022, 55% of homeowners plan to renovate their homes, while 46% plan to renovate them.
In addition, homeowners with higher conversion budgets plan to spend $ 75,000 on projects in 2022, compared to $ 60,000 in 2021, the survey said.
“Market fundamentals, including limited and obsolete housing, continue to push the DIY market,” Marine Sargsyan, an economist at Houzz, said in a press release for the survey.
Homeowners are committed to investing in their homes despite the high cost of products and materials caused by supply chain disruptions and are exploring various sources of funding.
Selling homes so they can fund their projects and spend more than the national median.
As for do-it-yourselfers, Americans are now spending for the most part, and the kitchens are still ahead, according to Realtor.com. Homeowners spend 25% more on this space than in 2021.
“Kitchens have the highest return on investment,” said Khari Washington, a real estate agent at 1st United Realty & Mortgage, Realtor.com.
Small spaces also saw an increase in spending, including guest bathrooms (38%), laundries (33%), and guest rooms (28%), according to the real estate agency. com.
On the other hand, only 18% of new homeowners have invested in home office repairs.
Realtor.com also reports that open floor plans continue to prevail, with 29% saying they have torn down walls.
“People want open space, but with rising housing prices, buyers can live in homes with subgroups they don’t want,” Washington told Realtor.com. “And the current homeowners have decided to stay in their homes and give them the format they want.”
Finally, Americans are spending on home security systems because outdoor security systems have increased since 2015, says Realtor.com.
Tony Mariotti, real estate agent and founder of RubyHome, told Realtor.com that lowering the prices of webcams and sensors means that their installation is cheaper and more attractive to consumers.
However, he added that “I do not believe that they are a great deterrent to thieves. If you picked up a masked man who took your packages from Amazon to your balcony, what then?
Reference Source: Go Banking Rates
