Landscape Architect Articles

Housing Affordability Woes Put Pressure on Remodeling01-31-23 | 10

Housing Affordability Woes Puts Pressure on Remodeling

by Rebecca Radtke, LCMP

With nearly half of owner-occupied houses in the U.S. built prior to 1980 and a struggling housing market, there is a high demand for remodels which has lent itself to opportunities.

The National Association of Home Builders (NAHB) shows that the median cost of a new home is roughly $460,000 yet 70% of U.S. households are unable to afford a $400,000 house.

With that, according to the National Association of Realtors, Americans spent an estimated $603 billion on remodeling marking a 42% uptick in demand for remodeling work contracting during the last two years.

The NAHB shows that around 48% of the housing stock dates to the 1980s or earlier with the median age of owner-occupied homes climbing to 41 years in 2023 - or up from 31 years in 2005.

Further, as the cost burden rises, remodeling is oftentimes the best option for homeowners struggling with the high home costs. This means that professionals are faced with a unique opportunity where they can bid on remodeling projects.