When a recession is happening or one is on the horizon, you may not think remodeling your home is a good idea. Most homeowners have other expenses to prioritize during economic downturns.
However, renovations could still be on your mind, whether you’re planning to sell your home soon or simply need to upgrade the functionality of your space. The good news is you can make various inexpensive home improvements to increase value across your property.
Is It Wise to Remodel During a Recession?
In 2024, it’s expected that fewer homeowners will spend money on remodeling their homes, which is mainly driven by a weak housing market. It’s understandable that homeowners would prefer to allocate their money elsewhere when the market may not work in their favor. Still, renovating some areas of your house could add more value than you expect.
Every homeowner’s situation is unique, and you know what’s best for you financially — but you shouldn’t avoid doing a remodel only because it may be a recession. For some people, it’s the ideal time to make changes. For example, remodeling amid a recession can provide benefits like:
- Lower costs and better deals as contractors look to generate more business
- Greater contractor availability
- Potential for higher long-term return on investment
- Opportunity to address long-deferred projects
- Boost to home value in a buyer’s market
- Personal satisfaction and lifestyle improvements
It’s important to note that remodeling costs can be more affordable than you expect, especially if you’re considering moving. By updating your home to suit your needs and preferences, you’ll likely spend much less than you would on a new property, plus moving expenses, potentially making it a smarter financial choice than you’d expect.
Considerations for Remodeling During a Recession
Ultimately, remodeling your home during a recession can be a smart idea, but you’ll want to take a couple of factors into consideration before you make any changes.
- Budget constraints: It’s no secret that recessions often tighten household budgets, either due to impacts on household income or shifting costs of living. Additionally, it may be more difficult to secure financing during a recession. Choosing budget-friendly home updates should be a priority so you don’t take on too much financially.
- Property value: If you’re considering making home improvements that add value, remember that property values tend to dip and be volatile during recessions. Still, timing your renovations correctly could help you capitalize on market changes when the recession is over.
So long as you create a strict budget and stick to it while keeping potential financial impacts in mind, you can position yourself to make valuable updates to your space. Working with the right home remodeling contractors can also help you create a successful project, as you’ll have experts with professional opinions on your side.
Strategizing Home Renovations During a Recession
A strategic approach to making recession home renovations is crucial. These tips can help you form the best plan to help you remodel your space and cut costs at the same time:
- Prioritize essential renovations: Consider which projects are most important. For example, upgrading your downstairs bathroom might not be at the top of the list if you have a leaky roof. If you make the most essential updates first, you can instantly benefit from the added functionality while creating value for your home.
- Assess finances carefully: Of course, you want to avoid taking on a project that isn’t financially viable. It’s best to start slow so you can maximize your spending as much as possible. Additionally, chat with a professional about cost-saving measures, like choosing affordable materials.
- Consider contractor availability: Negotiate with contractors for better rates and timelines. Find out if they can make the improvements in phases so that each step is more manageable to spread out costs and minimize disruptions.
- Emphasize long-term savings: It may be helpful to think about how you can minimize your cost of living through the changes you make. For example, you may want to update your home’s insulation and windows to help you save money on energy bills. These types of updates can help you create a more comfortable home and improve cost savings at the same time.
- Remember risk management: There’s no harm in creating a contingency plan and funding for unexpected expenses or economic changes. If you plan to renovate during the height of a recession, you should know what to do in the event of an issue to help you minimize financial loss as much as possible.
How to Save Money on Renovations in a Recession
While prioritizing specific updates is important to get the most out of your budget, you can also take other steps to save as much money as possible. Here are some tactics for creating cost-effective home improvements that increase value:
- Take a savvy approach: Not every part of a room needs replacing to help it look and feel like new. For example, you may not need to replace your kitchen cabinets with new ones when a fresh coat of paint would work just as well. Opt for more affordable techniques and materials when possible for a cost-effective approach.
- Choose low-cost, high-impact changes: Just a few small changes can make a massive impact. If you want to make a small room look larger, you likely don’t need to add an addition to do so — rearranging the furniture, adding a fresh coat of paint or redoing the floors could create the look you want in a more cost-efficient way.
With those points in mind, some effective yet financially safe renovations you might want to make include:
- Repainting walls and cabinets
- Replacing or refinishing flooring
- Replacing kitchen and bathroom countertops
- Replacing outdated appliances and fixtures
- Investing in new lighting fixtures
- Upgrading the exterior with new landscaping and paint
Reach out to Drake’s Construction & Restoration
Are you interested in remodeling your home? Don’t let a recession prevent you from making your house a more comfortable, accessible and functional space. With the right strategies and tactics and a team of professional contractors to help, remodeling during a recession is much less of a risk.
At Drake’s Construction & Restoration, we can work with you to create a budget-friendly remodeling plan that addresses all your needs. Together, we’ll identify the best areas to improve throughout your space, so you can get the most out of your home and benefit from added resale value later.
With decades in the business, our team can help you navigate an uncertain market while creating the space of your dreams. Contact us today to get a free, no-obligation estimate, and learn more about our renovation services for the Mid-Ohio Valley area.