The Economics of Kitchen Renovations

There have been two unforeseen consequences of the global pandemic. Both are surprising and both potentially involve your kitchen.

The first is that because people have been stuck in their homes for more than a year with nowhere to spend their money, now that the pandemic is finally drawing down many experts are predicting a period of “revenge spending”. People are planning trips they’ve had to postpone, big purchases they have put off making, and other ways to spend the cash that has been piling up since the pandemic began.

Housing Prices

The second is a significant increase in housing prices. Because the demand for houses is high and the supply is relatively low, sellers of homes are reporting that they are getting offers well above their asking price, in some cases significantly higher. In fact, many home sellers right now happily find themselves in the middle of a bidding war for their homes.

So how does this benefit you and your kitchen? First, if you are looking for someplace to spend your stimulus money and the savings you have been building during the pandemic, a newly renovated kitchen could be the right solution. Not only will it make your life better on a day-to-day basis, but it also can increase the resale value of your home.

Kitchen Renovations

This brings us to the second reason to consider a kitchen renovation. Kitchens are the most important room for new home buyers. If a home’s kitchen is outdated or in poor shape, it will almost always drag down the price of the home.

When you invest in a new kitchen, in today’s red-hot seller’s market you not only may be able to tack the cost onto the resale price but you also may be able to get even more than you spend on the kitchen renovation in the first place. Think of it as “flipping” your kitchen.