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House Renovations = Building Boom ?


               
2023 Mar 8, 7:45am   984 views  12 comments

by GreaterNYCDude   follow (2)  

From the Boston Globe (sorry, paywall). Paragraph below got me thinking:


The couple, both in their 30s, bought a three-bedroom colonial in Newton for $1.1 million — their first home — in 2019. During the pandemic, one of those bedrooms became a permanent office, and now [they are] pregnant with their second child, so they need more space. But nothing they see on the market right now makes sense for them: homes are either too expensive or too small, and, given the runup in interest rates over the last 16 months, any new mortgage would cost them significantly more per month than they pay now. So instead of moving, the couple has resolved to stay put and add a fourth bedroom. It’ll be a costly renovation but far cheaper in the long run than moving

(Source: BostonGlobe.com)

Ignoring the fact that a first-time homebuyer shouldn't need to spend > $1 million on a house, it raises a good point. If renovating makes more financial sense than moving to anyone with a low fixed rate mortgage, will we see an increase in construction activity on the go forward?

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1   zzyzzx   @   2023 Mar 8, 8:46am  

When they find out how much that room is going to cost, they might change their mind. Right now is not a good time to need a home improvement, unless you know someone or can DIY. At least in my part of the Northeast. Yes this is based on recent personal experience.

Also, I personally would never buy a house that has had an addition. It's never done right.
2   HeadSet   @   2023 Mar 8, 8:49am  

zzyzzx says

When they find out how much that room is going to cost, they might change their mind.

I agree. It costs over $1,200 just to get a driveway power washed and sealed.
3   HeadSet   @   2023 Mar 8, 8:50am  

zzyzzx says

Also, I personally would never buy a house that has had an addition. It's never done right.

Correct, not even a "converted garage" is worth it.
4   zzyzzx   @   2023 Mar 8, 8:59am  

HeadSet says


I agree. It costs over $1,200 just to get a driveway power washed and sealed.


Just got an estimate on getting a deck with a screened porch.... 115K with at least a 3 month wait. They also want 1/3 up front, despite the lack of custom stuff in the job (WTF is up with that?). The deck is maybe 2-3' off the ground. It's not just me, was listening to a YouTube realtor (Sachs) which has a Tuesday night broadcast and they were mentioning someone else in my area who got an > 100K quote on a maybe 12' x 12' screened in porch.
5   HeadSet   @   2023 Mar 8, 9:19am  

zzyzzx says

Just got an estimate on getting a deck with a screened porch.... 115K with at least a 3 month wait.

Yes, and no matter who you contract with, the workers that actually come out do not speak English. And their expertise will not be in quality, but the ability to slap it up fast.

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