AUSTIN, Texas--(BUSINESS WIRE)--BuildFax, a leading provider of property history and condition insights for the largest lenders, insurers and real estate companies, today released its findings on a market shift in remodeling preferences. The company found that more money is being allocated to renovations of existing structures compared to new construction.
From more than 23 billion data points on property history and condition, BuildFax’s recent study delivers a rich overview of new construction versus existing structure construction spending and found that residential remodeling activity has increased by 30 percent since 2010.
“Before 2008, the market preferred to invest in new construction instead of renovating existing structures as measured by dollars spent,” said Holly Tachovsky, CEO of BuildFax. “Around the start of the housing crisis, that difference virtually disappeared, indicating no real market preference for new structures. In 2016, BuildFax data revealed not only an increase in remodeling activity, but a preference for it over new construction, indicating modern families prefer to renovate existing homes to become more livable.”
The study also found:
- From 2011 to 2016, the average cost for residential remodeling projects grew by an annualized average of 2 percent per year and saw a 17 percent increase overall.
- Investment in remodeling is now outpacing new construction, which suggests renovations are fueling current home price increases.
- Spending associated with residential remodeling fell 10 percent in 2016, suggesting homeowners focused on smaller projects.
- The country doesn’t remodel at a homogenous pace, therefore looking at the data by region (or even by city or state) can reveal a much deeper level of detail to insurance carriers, building product manufacturers or equity traders using remodeling data as indicators for stock performance.
Founded in 2008 and headquartered in Austin, TX, BuildFax is the leading provider of property condition and history insights built on a foundation of building permits, construction data and other proprietary information. Encompassing more than 23 billion data points on commercial and residential structures, BuildFax delivers detailed data on everything from remodeling, solar installations, new construction, roof age, maintenance history and more. To learn more about BuildFax, visit www.buildfax.com.