The “new” economy may actually have a few benefits to go along with the tough times we have been experiencing. This could be the best time to remodel in decades. Ideally, you want to remodel when interest rates and construction costs are low. Right now, interest rates are hovering around 5 percent. But what is happening to construction costs?

From 2003-2007, the economy saw the cost of construction for a home remodel rise by about 10 percent per year. By the end of 2008, the cost of construction had taken a reversal. The slowdown in the local and global economy had lowered the cost of remodeling by 10 percent to 15 percent.

We are still feeling the benefit of the slowdown. A remodel that would have cost $230,000 in 2010 if the recession hadn’t occurred will actually cost $30,000 less because of reduced construction costs. In 2007, a remodel that would have cost $150 per square foot today would cost only about $120 per square foot.
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