Many homeowners are turning to additions and renovations instead of buying and selling as interest rates hold steadily high with home prices still above average compared to before the pandemic.
Homeowners are now sitting on “substantial” increases in home equity available to finance renovations, according to interior designer Sharon McCormick of Sharon McCormick Design.
“Moving is expensive with Realtor commissions, closing costs, lenders’ fees, appraisals, inspections, title insurance, surveying fees, moving expenses and utility hookups adding up quickly. Uncertainty in the market and rising interest rates also play a role in the decision-making process,” McCormick said.
According to The Seattle Times, Other factors pushing homeowners to stay in their current abode are loving their neighborhood, keeping children in the same school system, emotional attachments to the home and relationships with trusted neighbors.
“2025 is ushering in a new wave of house renovations, particularly kitchens, bathrooms and creating more usable square footage by building out unused attic space or basements,” McCormick said.
Kitchens are an increasingly popular room to renovate, she said, since they are the center of activity for meals and entertaining.
“Even minor updating will increase the value of the home. Much thought is put into making the kitchen more functional as well as beautiful, with customizations of cabinets and storage for exactly the way a family uses the space,” she said.
