Aging Homes Good for the Real Estate Market and Economy

January 11, 2013

chicago real estate aging homes

While it’s no surprise that moving into a brand new home can save you time and money, it turns out that remodeled older homes are a good option, too.

While remodeling experienced a downturn during the recession, many owners of older homes are back in the game and looking to make some changes to their residence.

According to Harvard’s Joint Center for Housing , home improvement spending will see double-digit growth in the first half of 2013. By the second quarter of next year, homeowner spending on remodeling is expected to rise from its current annual rate of $115.1 billion to $134.2 billion by the second quarter of next year.

A major cause of the increase in remodeling spending is a high demand for energy-efficient homes, as saving energy is now a top homeowner desire. Tax credits for energy-efficient improvements are also increasing remodeling as homeowners can receive a 30 percent tax credit for installation of products such as solar panels, energy-efficient windows and hot water tanks.

Since energy-efficient homes are in such high-demand, homeowners making these renovations will most likely attract more buyers. Another great benefit of remodeling is that every $10 million in remodeling expenditures creates enough economic activity to support 111 jobs.

If remodeling has been on your ‘to-do’ list for quite some time, 2013 can be the year when you make it happen!

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