Is there any room for room additions anymore? Room additions of any kind now are not nearly as attractive as before this economic climate that we are now in. Financing was easily obtainable, equity in your home in most instances was abundant, and value added when completed regularly matched or exceeded the cost of the project. So it was a time where an addition to a residence was a very easy decision. Those times have gone and now additions face a different climate.
Current avenues of financing are almost non-existent for most. Home equity has shrunk and in worst cases gone negative. Value added on completed projects rarely matches the cost. But all is not lost for an addition to be done in these current conditions. Now room additions have to be carefully thought out as to what is the overall value that will be afforded when the addition is completed. Value has to be more than just a monetary figure. Value has to be also the added enjoyment and elevated living conditions that the addition affords. Financing avenues, if needed, have to be expanded. Personal funding, friends and family, or a combination of these in addition to regular funding have to all be considered during these times.
Additions now have attractive construction costs compared to costs during the past ‘boom’ times. Consequently a consumer who is able to secure funding is able to take advantage of completing a project for some significant percentage less than what it would have cost in the past. And looking into the future, as do house values always resurrect and rise in value, these additions done now will increase in value at a higher rate because of the current reduced costs. I can liken this to purchasing stocks in a down market and watching your investment rise again to past values and beyond when the market returns as it also always does. Room additions done now will have the same long term result as well as the added enjoyment and elevated living conditions. So, yes there certainly is room for room additions, now just as much as there ever has been.
Owner, LZ Construction