Home Extension & Renovation Cost Index
HERC Index readers, particularly would-be renovators, will be pleased to note that there was no increase to the Index figures in May.
In other news, we highlight a recent Daily Telegraph article which suggests that renovated homes are helping to drive up the median NSW house price (note: subscription may be required to view article).
Key points of interest from the article include:
- “Renovated homes have been selling recently for up to double the price their sellers paid only a few years ago”
- HIA economist Shane Garrett says homeowners are often in a strong position to undertake renovations because they have more equity in their properties: “Property price increases mean most homeowners can borrow more against the value of their houses, so many are putting that money into improving them,” Mr Garrett said.
- Roughly one-fifth of renovators spent $200,000 to $400,000 improving their homes, while another fifth spent $12,000 to $40,000 over the past year.
By way of comparison, while Cape Cod designs and builds major renovation projects in the price range $150,000 to $1.5 million, the average cost of our renovations over the past 12 months increased by 3% to around $310,000.
For further insight into how the cost of major renovations has changed in recent years, we invite you to look at the projects behind the HERC Index here.