Yes, the housing market – and by association, home improvement – remains stuck in the mud. But there is more to the story. This month, The Drill Down considers these alternatives to the conventional resell market: Leveraging equity and feathering the nest, exploring budget-friendly and striking modular construction, and finding luxury property in rather unexpected places.

Rather than sell, homeowners are pouring their equity into renovations

High home prices and mortgage rates have made the housing market especially tough for millennials, leaving many priced out of buying larger or new homes. As a result, a growing number of homeowners are opting to renovate by tapping home equity to stay put. This shift reflects the new reality where renovating for function and value, rather than moving, is becoming the norm among younger generations.

In many markets across the U.S., some smaller or starter homes are selling at or near $1 million — which prices the vast majority of younger buyers out.

But instead of dwelling on the fact they can’t afford their dream home, many current homeowners are turning to renovations instead to add that idealistic kitchen or extra bathroom they would’ve wanted in a newer, larger home. More here: (Source)

The S/M Take: 

Is that the sound of the ice breaking? 

This June survey of 2000 homeowners found 60% of millennial homeowners and 56% of Gen Z homeowners have remodeling or renovation plans this year. With 91% of folks not planning to sell this year, home improvement is in the spotlight. 

Attention, brand marketers in this space: Now’s the time to adapt your media targeting and pricing strategies toward these cost-sensitive cohorts, because they hold the keys.

Are modular & manufactured homes the most affordable route to net zero?

This video explores sustainable building practices related to modular homes, addressing misconceptions and examining their potential in providing affordable housing solutions while benefiting the environment. More here: (Source)

The S/M Take: 

Hey, we’re realistic. Traditional construction, performed onsite, will long be the backbone of homebuilding. But conventional methods gin up a fair amount of waste and emissions. Is there a better way forward, at least for a segment of homebuyers? 

For an answer, we turned to Cavco, one of the key players in manufactured housing. Per Bill Boor, president and CEO, “Steadily rising costs are driving home ownership out of reach. Cavco’s factory-built production allows us to build high-quality homes nationwide while keeping construction costs low and minimizing waste.”

To borrow a phrase, these aren’t your father’s manufactured homes. And their time has arrived.

These 3 metros attract high-end homebuyers looking for a laid-back lifestyle

Not all luxury buyers need to spend millions to get a sprawling home. Luxury can mean different price points depending on the market where you're looking.

The strongest metros are combining relative affordability, livability, and economic resilience, according to the latest Wall Street Journal/Realtor.com® Luxury Housing Market ranking.

The report reveals that despite high mortgage interest rates, luxury buyers are still investing. Instead of multimillion-dollar price tags on properties along traditional coastal hubs, they're turning their attention to places that deliver a high quality of life without the extreme price tag. More here: (Source)

The S/M Take: 

The Drill Down feels a little like Bill Hader’s Stefon character from Saturday Night Live when we say, “America’s rich and famous are flocking to the hottest of the hotspots… St. Louis.” 

But The Lou leads the list, along with Santa Fe and Motown, for affordable luxury. Hey, if new locales get the market moving, we’re buying. Well, not actually buying – more like cheering.