The residential remodeling market has remained strong throughout the COVID-19 pandemic, as Americans spent more time at home and made improvements to boost their home’s market value.
Those remodeling improvements, along with staggering home price growth in the second year of the pandemic, have delivered strong home value appreciation over the last year, according to economists at the National Association of Home Builders (NAHB).
Aggregate Market Value
The aggregate market value of all owner-occupied real estate in the U.S. in the first quarter of 2022 rose $1.6 trillion from the fourth quarter of 2021 to $39.7 trillion, data from the Federal Reserve showed.
In addition, household real estate assets’ year-over-year gain in the first quarter was 16.2%, the largest year-over-year percentage gain since 2001, the Fed’s Flow of Funds showed. Owners’ equity as a percentage of households’ real estate was the highest since 1986.
Balance Sheets
Real-estate secured liabilities of households’ balance sheets, such as mortgages, home equity loans, and home equity lines of credit (HELOCs), showed an increase of $200 billion from the previous quarter to $12.0 trillion, an 8.4% year-over-year gain and its largest increase since the first quarter of 2007.
RELATED: Highlighting Opportunities for Women in Construction
The change in the value of total home mortgages is due to a combination of new loans taken out for home purchases and the aggregate unpaid principal balance of all existing mortgages. This period’s increase is likely owed more to a heated market catering mostly to those who could afford more expensive homes.
Aggregate Owners’ Equity
Aggregate owners’ equity, or the difference between homeowners’ real estate-secured assets and liabilities, rose to $27.8 trillion or 70% of all owner-occupied household real estate. Home equity’s value, the common source for financing remodeling projects, is collateral against which loans can be taken out, either through HELOCs or home equity loans.
Add new comment
Related Stories
Contractor Facing Lawsuit in ‘Major Case’ by Ohio Attorney General
An Ohio custom builder and remodeler faces a lawsuit after alleged losses exceeding $1 million
Learn from the Best in Home Improvement and Remodeling
This year’s Pinnacle Experience aims to help remodelers stay ahead of their competitors by featuring captivating keynote speakers and subject matter experts, collaborative roundtable discussions, and networking with proven players from across the country.
Registration Open for The Pinnacle Experience 2024
Register today for The Pinnacle Experience 2024 in Baltimore from June 26-28. Join the best and brightest in home improvement and remodeling for insight, advice, and relationship-building that will help you take your business to new heights.
Marvin Releases Switchable Privacy Glass Window
The privacy glass windows can be purchased from Marvin's Direct Glaze windows
Gas Ban in New Construction Considered by Chicago
The mayor-backed ordinance would impact all new construction
Working Toward Affordable, Resilient Homes
A new natural disaster protection act from NAHB aims to support hazard mitigation projects
The Remodeling Market Could Turn in Q4, Says Harvard
Repair and remodeling spending could see an uptick at the end of the year
Seattle Contractor Finds Grenade During Remodel
Polar Bear Construction Owner Vadim Kharkhavyy and the owner were equally shocked
New Independent Contractor Rule Faces Lawsuit
The Department of Labor submitted new criterion to judge when classifying workers
New Insulation Innovation Reshapes Our Thinking of Refrigeration
Whirlpool Corporation's latest innovation allows refrigerators to do more and be more