Home Remodeling Trend Expected to Hold Steady with Millennials

According to a report by the Harvard University Joint Center for Housing Studies, they foresee home improvement projects to increase by 2% annually through 2025, due to a more stable economy and an increase in home valuations. In 2015 alone, remodels done by homeowners as well as renters hit a record high of $340 billion! 

As millennials continue dominating the overall population in the U.S., it is expected that they along with the next largest population, the baby boomers, will together be the ones to update their living spaces to accommodate their ever-changing needs. 

 In North Carolina, many millennial homebuyers choose affordable homes for sale in places like Raleigh or Charlotte, with the intention of doing at least one home improvement project – everything from landscaping, to upgrading the master bathroom or kitchen, and adding on rooms. 

Among these many types of remodeling projects, 56% of them will be upgrades to baby boomers’ existing homes to ensure their safety and accessibility, while millennials will have more of an interest in the latest innovations in technology and energy efficiency for appliances and systems that will help them save money while making their lives easier.

Remodeling in Markets with Low Cost of Living

It makes the most sense to remodel where the cost of living is low, so remodeling expenses will also be the most economical and give you the advantage when it comes to selling your home for a profit! North and South Carolina are among the states with the lowest cost of living right now. Affordable living in the South is so much easier than it is in the North and Northeast regions of the country. In fact, when totaling costs from real estate and sales taxes, as well as personal income taxes, North Carolina is 4th lowest averaged at $6,460 while South Carolina is 4th lowest at $6,480. The other states from the rankings are Tennessee 1st, Florida 2nd, and Georgia 3rd.

If you are looking at either North Carolina or South Carolina homes for sale, then here are some cost comparisons between the two states:

North Carolina averages
$1,800 spent for property taxes (with a mill rate of .009 mills) on a $200,000 home
$1,860 spent on sales tax (state sales tax is 7.75%)
$2,800 personal income tax (for $40,000 annual income) 6% over $12,750 annual income
Less expensive living in the cities of: Charlotte (29%), Wilmington (25%), and Asheville (23%)

South Carolina averages:
$2,000 spent on property taxes (with a mill rate of .25 mills) on a $20,000 home
$1,680 spent on sales tax (state sales tax is 7%)
$2,800 personal income tax (for $40,000 annual income) 7% over $13,700 annual income
Less expensive living in the cities of: Greenville (31%), Charleston (25%), and Beaufort (20%)

For homes for sale, neighborhood information, guidance and more, get in touch with Showcase Realty experts to help you find the perfect home. Give us a call at 704-997-3794 or email us at [email protected]. We're at your service!