Confidence is also key. When people feel better about their home’s value, they are more apt to invest in it.
“I call it ‘nesting is investing.’ People are saying I want to do something that adds to the value of my house, and I’m just going to fortify the castle,” said Brad Hunter, chief economist with HomeAdvisor, an online home services marketplace.
And what fortifies the castle best? Kitchen and bath remodels are always popular, but Hunter points to less sexy insulation, as yielding the largest returns. He also said service requests on HomeAdvisor for multiroom remodels are up 67 percent from a year ago.
“We could see percentage growth rates in the remodeling and home- improvement sector that exceed those for new home construction in the next few years,” Hunter said.
At least one-quarter of remodeling firms across all sectors report seeing more clients taking on multiple projects at the same time, according to another report from Houzz, also an online remodeling services firm.
Nesting is not the only thing driving home remodeling. As home sales pick up, they fuel fresh finishings as well.