Shreveport contractor seeing boom in renovations despite inflation
SHREVEPORT, La. (KSLA) - Right now, despite inflation driving up the cost of many products, it’s a buyer’s market.
Contracting businesses in Shreveport are seeing an influx of people looking to renovate their homes.
KSLA News 12′s Tayler Davis spoke to a contracting company in Shreveport that is staying busy.
Watch tonight on News 12 at 6 to also hear from a real estate lender on why more buyers are looking to renovate their homes.
In other parts of the country they are seeing the opposite, though.
MRJ Homes and Construction owner Marie Jones has a theory about why she’s seeing an uptick in demand for renovations.
“With the increase of interest rates, a lot of people now have been bumped out of the qualification process of buying a new home, so a lot of people are choosing to stay where they are and make renovations. The other side of that is that is now a buyer’s market,” Jones said.
Jones said buyers want to fix homes and sell them and homeowners just want to give their homes a facelift.
According to Nerd Wallet, the current interest rate for a 30-year fixed rate is 5.64% and for a 15-year fixed rate, it’s 4.83%.
Mortgage lender Colette Delaney explained why people are choosing the renovation route.
“With the interest rates a little bit higher currently you may be able to afford maybe $200,000 so you can find a cheaper house that needs some work done and still be able to get what you want.”
According to The Associated Press, other business owners are seeing a decline in people seeking renovations and inflation is one of the issues.
Copyright 2022 KSLA. All rights reserved.