Growing Families Face a Critical Decision: Should You Add On or Move Out in 2024?
For growing families across Long Island and beyond, the question isn’t whether you need more space—it’s how to get it. With median home prices at $439,419 nationwide and 82% of homeowners locked into mortgage rates below 6%, the traditional approach of simply moving to a bigger house has become increasingly challenging in 2024.
The math is stark: monthly costs for a newly purchased home are about $2,700 higher than they were just a few years ago, with payments for a mid-tier home reaching over $5,900 a month. This dramatic shift has forced many families to reconsider their options, making home additions more attractive than ever.
The Financial Reality of Each Option
When evaluating your choices, understanding the true costs is essential. Home additions can range from $45,000 to $250,000, with an average cost around $120,000, depending on factors like size and complexity. More specifically, you can expect to pay between $80 and $200 per square foot for most addition projects.
Moving, on the other hand, involves multiple hidden expenses. Selling your current home and purchasing a new one can include real estate agent fees, closing costs, and moving expenses. Additionally, depending on the price of your new home, you may need a significant down payment, and the monthly mortgage payment might be higher than what you currently pay.
The current market conditions make this comparison even more compelling. Although large projects (such as a second-story addition) can be costly, the price of a remodel will generally be more affordable than buying a new house, especially in today’s high-cost real estate environment.
Why Home Additions Are Winning in 2024
Several factors make home additions particularly attractive right now:
- Cost-Effectiveness: Generally, building an addition is less expensive than buying a larger home, especially in high-cost real estate markets
- Value Addition: Well-executed additions can boost your property’s market value, making it a wise investment for the future
- Stay in Place: You can stay in your beloved home and neighborhood while gaining the extra space you need
- Customization: Home additions allow for personalized space tailored to your specific needs, whether it’s a new bedroom, office, or expanded kitchen. Additions offer the flexibility to design the space exactly how you want it, from the layout to the finishes
Understanding the Challenges
However, home additions aren’t without their complexities. The process can be complex, requiring permits, dealing with zoning laws, and potentially facing unexpected challenges. This is where working with an experienced general contractor huntington becomes crucial for navigating local building codes and ensuring your project runs smoothly.
While the timeline for buying a new home is relatively straightforward, any remodeling project requires patience and flexibility. Things go wrong, contractors need more time, costs change, and you could be dealing with a project that goes on for weeks or even months longer than you originally planned.
The Moving Alternative: When It Makes Sense
Moving isn’t always the wrong choice. It may be preferable when:
- Your current neighborhood no longer meets your family’s needs
- School districts are a primary concern
- Your lot size or local zoning restrictions limit addition possibilities
- Major structural issues make additions impractical
Moving offers the chance to explore new neighborhoods, find a better-suited home for your lifestyle, and potentially even reduce costs, depending on the real estate market. However, moving is stressful and expensive. Why spend $10,000 on moving costs alone when you could renovate your living room and bedroom for the same price? The cost of moving is especially wasteful if you are only gaining minimal equity from your home sale.
ROI Considerations for 2024
Return on investment remains a critical factor. 17 of the 23 projects showed an improved ROI for 2024. All the projects that experienced over 20% growth from the previous year, and the four with the highest ROI, are front-of-house, exterior projects.
For home additions specifically, an upscale owner’s suite add-on only averages a 47.7% return on investment, while a deck addition offers a 63% average return on investment. While these returns may seem modest, they’re often better than the equity loss experienced when selling and buying in today’s market.
Making the Right Choice for Your Family
The decision ultimately comes down to your specific circumstances. For many Americans, cost is a major factor in home improvement decisions. Whether or not it’s cheaper to renovate or sell depends on your current mortgage situation, as well as how much money you have in savings. Renovations come with immediate, out-of-pocket expenses, whereas moving can put money in your pocket now but cost you a lot more down the line.
Consider these key questions:
- How much equity do you currently have in your home?
- What would your new mortgage rate be compared to your current rate?
- Can your lot accommodate the addition you need?
- Are you emotionally ready to leave your current neighborhood?
Working with the Right Professionals
Whether you choose to add on or move, professional guidance is essential. Seeking professional advice is essential when weighing the decision between adding to your home or moving. Experts like architects, contractors, and real estate agents can provide valuable insights tailored to your specific situation. They can assess the feasibility of a home addition, considering zoning laws and structural limitations, or help you understand the local housing market’s dynamics.
For Long Island families specifically, working with local contractors who understand Suffolk County’s building codes, coastal weather conditions, and permit processes can make the difference between a smooth project and a nightmare. Experienced professionals can help you navigate the complexities while ensuring your investment pays off.
In 2024’s challenging real estate environment, the smart money is often on staying put and expanding what you have. With careful planning, the right team, and realistic expectations, a well-executed home addition can give your growing family the space you need while building long-term value in your most important investment.