Renovation, not relocation, drives home improvement decisions

By All Craft Exteriors.  

Homeowners are responding to interest rates and housing constraints by upgrading existing homes. 

Homeowners across the country are choosing to reinvest in their existing homes rather than try their luck in a competitive housing market. Instead of buying new, families are prioritizing exterior upgrades that protect and improve value and long-term performance. According to recent data from the National Association of Home Builders (NAHB) and ProBuilder, this shift continues to fuel strong demand for renovation projects.  

All Craft Exteriors is tracking these trends closely to help local homeowners make informed decisions about roofing, siding, windows and gutter improvements that align with current economic conditions. 

1 - Interest rates dip again — A boost for renovation financing 

This week, the NAHB’s latest economic update reports that the Federal Reserve lowered the federal funds rate to 4%. A December cut is possible, but not guaranteed, with inflation still hovering around 3%. 

Renovation impact: 

Every small drop in borrowing costs helps homeowners move forward with exterior renovation projects like: 

• Roof replacements  
• New windows  
• Siding upgrades  
• Gutter systems that can handle storms 

Financing becomes easier when rates ease — even a little. 

Source: NAHB Newsletter

2 - First-time buyers are struggling, meaning more people renovate rather than relocate 

A ProBuilder report released November 4 shows the median first-time buyer is now 40 — the oldest ever recorded. First-time buyers make up just 21% of the market, and one in four home purchases last year were made with all cash. 

Renovation impact: 

Because of the fact that fewer people are buying and more people stay put, renovation becomes the practical choice. Additionally, when new homeowners do buy, they often arrive with less cash for immediate exterior needs like: 

• A roof near the end of its life 
• Drafty windows 
• Siding damaged by age or storms 

For many, financing becomes the key to getting these essentials handled right away. 

Source: ProBuilder — First-time buyers edged out of the market

3 - Rural migration keeps renovation demand strong  

A November 13 ProBuilder article reports that rural and near-rural counties gained more than 430,000 residents from 2021 to 2024 due to remote work. Specifically, growth has slowed, but it remains steady in metro-adjacent areas. 

Renovation impact: 

Many older homes are being purchased by new residents, and these homes typically need exterior updates first: 

• Aging asphalt roofs 
• Old wood or aluminum windows 
• Siding that’s faded, warped or storm-damaged 
• Gutters undersized for heavy modern rainfalls 

This keeps home renovation demand consistent and predictable. 

Source: ProBuilder — Rural housing market migration

Original article and photo source: All Craft Exteriors