Why Remodeling During a Recession is a Great Idea
The financial experts can’t seem to agree if we are officially in a recession. But soaring prices for goods and services, the steep hike in the cost of gasoline, and back-to-back quarters of shrinkage in the U. S. economy indicate that a recession is likely underway.
So, it’s natural to want to keep personal spending under control. Living within your means is even more important during economic downturns, like what we seem to be experiencing now.
But what about home remodeling? Does it make sense to spend your hard-earned money to renovate your house amid all this negative economic news?
The answer may surprise you. Historically, renovating homes during or near a recession is a good idea. For example, there will likely be more competition for contractors, driving prices down.
Savvy investors have found that a recession is one of the best times to schedule home improvement projects.
Also, consider that with the economy’s condition, renovating your home is a preferable option to selling and buying a new house, especially given the skyrocketing prices of residential properties right now.
3Rs Construction & Remodeling is here to help you remodel and renovate your home. We are your trusted general contractor in Salem, Oregon.
Here, we will look at the main reasons why remodeling your home during a recession makes good cents.
During a recession, demand drops, and prices can too.
Home renovations will typically be more affordable during a recession. While material prices rise, contractors generally charge less for your home remodel during lean economic times. This is largely due to increased competition and fewer projects to bid.
You’ll find many contractors offering discount prices to have steady work coming in, trading profit margins for job security. As a result, consumers can take advantage of this money-saving opportunity.
The end result is that you will receive even more value for your next home remodel project.
Materials Cost Less
During tougher economic times, construction decreases in all sectors. This can result in the cost of building materials dipping some to keep inventory moving.
Even though supply chains are still backlogged, and obtaining building materials is still problematic, suppliers are working overtime to get products out to keep their businesses afloat.
High-Quality Contractors Are More Available
An economic slowdown allows you to find high-quality contractors available for your home remodel project. With more contractors available, there is a good chance that your home remodeling project will be completed sooner than during good economic times.
During an average economy, top-quality and qualified building professionals will be a lot busier and not as readily available to consumers who need their home remodeling services, but during a recession, the number of large-scale construction and renovation jobs may also decrease. This leads to excellent quality contractors, architects, plumbers, and masons being much more available and seeking out more minor projects. However, be careful. Many of these contractors are at the top of their game in new or commercial construction. Still, those skills do not translate well to residential remodeling, the most complicated of all construction.
Another word of caution, do your homework; during lean times, some people want to augment their income by posing as contractors and offering to work for less money if it is paid in cash. If they are willing to cheat the government, who has the means and ability to enforce the laws, do you think they are not equally comfortable in cheating you? Check out your contractor on the CCB website. And also, check out their reviews. Everyone gets one or two odd ducks that leave a bad review just because they can, but a good remodeling contractor should have a long track record of positive reviews.
Reduce Your Energy Costs
During lean economic times – especially during a recession – homeowners are looking for ways to save their hard-earned money. One perfect way to do that is through energy conservation. For example, replacing old windows, doors, and appliances will make your home more energy efficient.
Focus on reducing your energy costs for your next remodel and rake in the savings. You can even apply the money you’ve saved and put it toward your next home renovation project.
With this type of home remodel, you enjoy the twin benefits of saving money and reducing your carbon footprint.
Looking for a general contractor you can trust? Contact 3Rs Construction & Remodeling in Salem, Oregon is here to help! Contact us for a FREE quote!
Save Money By Entertaining at Home
When money gets tight, more homeowners choose to entertain at home, saving money by foregoing eating at restaurants and taking trips. This puts the focus on your home and recognizes the need to build an outdoor kitchen or a seating area on the back patio, for example. Taking these actions means you will be better equipped to entertain at home.
Think of it this way: instead of spending money on discretionary activities like vacations and recreational pursuits, you invest in remodeling your home. This way, you enjoy the benefit of entertaining and spending time with friends without spending additional money on travel and restaurants.
Improve Your Home’s Resale Value
If you plan to sell your home in the next three to five years, you may want to think about how much more you could get for your home when you’re ready to move. The right remodel could add thousands of dollars to your asking price after the economy has recovered.
An extra bedroom, a renovated basement, or a bathroom remodel with upscale features will have added appeal to potential buyers a few short years from now.
Complete an Attic, Basement, or Other Unfinished Space
Given the economic downturn, finishing your attic or basement right now is ideal timing. For example, this type of home remodeling project will improve the functionality of your living space. But, what’s even better, is that it will give you a significant return on your investment (ROI). For example, this return on finishing your basement could give you an ROI between 70 percent and 75 percent.
Focus on Your Home Remodel Needs and Tune Out the News
At 3Rs Construction & Remodeling, we suggest you turn off the news and make your budget decisions based on what you have to work with regarding your home remodel.
In essence, it is helpful not to let current economic conditions influence you when you decide to do your home improvement project. Smart homeowners always seem to get ahead because they aren’t moved by the emotional rollercoaster created by the media over the U.S. economy.
Call on the Home Remodeling Experts at 3Rs Construction & Remodeling
When you are ready to start your next home remodeling project, we invite you to call the experts at 3Rs Construction & Remodeling. Whether you’re planning to remodel your kitchen or bathroom or do an addition, our highly skilled professionals will guide you and help you come up with design options and then make it come to life.
Call us at (503) 363-1059, so we can get started on your new home remodel project today!