SANTA CLARA, Calif.,
April 15, 2019 /PRNewswire/
-- Nearly 60 percent of all spring home shoppers are
considering a home that needs renovating, as rising home prices and
limited entry-level inventory continue to be a hurdle, according to
realtor.com®'s spring home buyer survey announced today.
Just over half of home buyers considering a home that needs some
TLC are willing to spend more than $20,000 on the renovation, while the vast
majority - 95 percent of them - are optimistic they will get a
positive return on their renovation investment.
Realtor.com® conducted the online survey through
Toluna Research in March, consisting of 1,015 respondents planning
to purchase a home in the next 12 months.
"The combination of rising home prices and limited entry-level
homes for sale is prompting many home shoppers to consider homes
that need renovating," said Danielle
Hale, realtor.com®'s chief economist. "Replete
with inspiration at their fingertips - like Pinterest, Instagram,
and various home renovation TV shows - some home shoppers are
comfortable tackling home renovation jobs to find a home that
balances their needs with their budget."
According to the survey, roughly three out of five home shoppers
under 55 years-old are considering a home this spring that needs
renovating. Middle-aged shoppers, 35-54 years-old, were the most
likely to consider a home that needs renovating, at 65 percent.
Middle-aged shoppers are more likely to be current homeowners and
their experience with maintaining and improving their existing home
may give them the confidence to tackle renovations, especially when
motivated by trying to find a home that fits their needs within
their budget, Hale noted. Just 59 percent of younger home shoppers
aged 18-34 years-old, who are less likely to be current owners, are
considering a home in need of renovation. Less than a third of
buyers older than 55 years-old would consider a home that needs
renovations.
Just over half of spring home shoppers considering homes in need
of renovation - 51 percent - are willing to spend more than
$20,000 on their home renovation.
Twenty eight percent are willing to spend up to $10,000, and 22 percent are willing to spend
between $10,001 and $20,000. According to realtor.com data, a major
kitchen remodel will cost around $66,000, while a minor remodel will cost around
$22,000. Similarly, an upscale
bathroom remodel will cost you around $64,000, while a midrange bathroom remodel runs
about $20,000.
While home renovations can be costly, home shoppers are
optimistic they will get a positive return on their investment.
According to the survey, 95 percent of home shoppers considering a
home that needs renovations expect a positive return of some sort
on their investment. Nearly a quarter - 24 percent - expect a
positive return of more than 50 percent.
A kitchen upgrade was the No.1 home renovation chosen by nearly
30 percent of respondents considering homes that need to be
renovated. This is not particularly surprising since both this year
and last year an updated kitchen was first among the top three
features sought by potential home shoppers. A kitchen upgrade was
followed by a bathroom renovation at just over a quarter - 26
percent, and new wood flooring at 20 percent. Eighteen percent
considered a hardwood flooring refinish, and the same share
considered a complete overhaul kitchen renovation.
Among spring home shoppers considering a home in need of
renovation, nearly 60 percent said home renovation television has
made them more optimistic regarding home renovations, according to
realtor.com's survey. Whether it is seeing the project unfold in a
tidy 30 minute segment, or just getting inspired by the before and
after shots, home shoppers are turning to home renovations to make
their dream home when finding one as-is turns out to be
difficult.
About realtor.com®
Realtor.com®,
The Home of Home Search℠, offers an extensive inventory of for-sale
and rental listings, and access to information, tools and
professional expertise that help people move confidently through
every step of their home journey. It pioneered the world of digital
real estate 20 years ago, and today is the trusted resource for
home buyers, sellers and dreamers by making all things home simple,
efficient and enjoyable. Realtor.com® is operated by
News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move,
Inc. under a perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
Contact: Cody Horvat --
cody.horvat@move.com
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SOURCE realtor.com