As the real estate market heats up, many home sellers are wondering whether they should remodel or improve their home before they sell, and how much they should expect to spend. Buyers, on the other hand, are wondering what those remodels touted in the listings really cost the homeowner.
Well, if you’re wondering what people are spending on remodels, you’re in luck. The National Association of Home Builders (NAHB) has just released a survey of remodeling costs by zip code.
NAHB’s survey results indicate that in the Phoenix Valley, the average cost for a remodel is between $9,000 and $11,000 per improved home. Statewide, the NAHB estimates that of more than 1.6 million owner-occupied homes in Arizona, nearly one-third, or 477,775 are anticipated to perform some kind of home improvement or remodel in 2018. The average cost of a remodel in Arizona is projected to exceed $7,900 dollars in 2018, with the costs estimated to be significantly higher in urban areas of the Phoenix Valley.
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These findings are consistent with national trends. The NAHB survey found that in the average U.S. zip code, owners estimated they were likely to spend approximately $7,893 to upgrade their homes. But there is considerable variation across the country. In many zip codes, particularly rural areas, owners are expecting to spend less than $5,500, while in urban areas such as Phoenix, the Northeast and cities of the west coast, remodeling costs were projected to exceed $11,000 per home.
The NAHB survey uncovered some additional statistics about projected 2018 remodels. Among the findings:
- Homeowners in urban areas spend more on remodeling and improvements than residents of rural areas.
- Homeowners with higher incomes tend to remodel more (no surprise there).
- Middle-aged homeowners between 35 and 74 years old were more likely to remodel or make home improvements.
- Married couples, those with children and those with at least some college education were the most likely to spend money on remodeling.
Wondering what homeowners in your zip code are spending on remodels and improvements this year? You can access the NAHB research for a fee; it’s available by zip code here.