With interest rates hovering higher than the 3% many homeowners are locked into, moving has become expensive. This is driving a massive boom in major renovations and additions.
When to Remodel: You love your neighborhood, your schools, and your lot size. If the house has “good bones” but needs a cosmetic or layout update, remodeling allows you to keep your low mortgage rate on the existing balance and only finance the construction costs via a HELOC or renovation loan.
When to Move/Build New: If you need significantly more square footage than your lot allows, or if the foundation/structure of your current home is failing, starting fresh might be the better financial decision. Sometimes, the cost to retrofit an old home exceeds the cost of a modern, energy-efficient new build.