Summer home renovations big boost for local economy

Summer home renovations big boost for local economy

TYLER (KYTX) -  There's a great new sign of an improving economy, and not just nationally, but locally!

A new Zillow survey shows 60 percent of homeowners plan to remodel this summer. The City of Tyler is seeing a big increase in building permits for new construction but also remodeling, which is a huge indicator of a strong economy.

"We've stripped the drywall, we've shaved the ceiling, we've pulled some of our tile up, basically getting it up to speed with the rest of the house," says Carlyle Mehling. She's in the middle of remodeling parts of her Tyler home to sell it in the future at what she calls a perfect time.

"Interest rates are low, people are looking to buy, they're encouraged by the government to spend money, so it's a great time to move in and make your first big purchase," she says.

Tyler Economic Development Council President Tom Mullins says it takes one main ingredient to stir the economical pot like this.

"Consumer confidence. If people have confidence that the economy is actually turning, they're going to stay at their place of work, or their business is doing better, they will then have the confidence to spend money on a major expense item like remodeling a house," Mullins says.

Mullins is even choosing this summer to renovate his home.

"We've been in our house 24 years, and we remodeled once, but now there's more stuff to do. I'm a little bit frustrated because I should have done it when people weren't as busy! Now they're getting more busy meaning it'll be more expensive," he says.

The "people" he's referring to are construction companies, busy because business is booming. It's a wonderful sign for the local economy.

"When our construction industry is doing well our whole economy does well because they're buying materials for remodeling for construction of new homes, they're spending money locally, they're hiring people who are in turn spending money. That trickles down through the whole economy," Mullins says.

That Zillow study showed that younger homeowners would be doing the most improvements.
Those homeowners are predicted to spend an average of $1,500 on their renovations.

40 percent of the  home improvement projects this summer are outdoor spaces.


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