The rise of the “forever home” doesn’t just signify a shift in the real estate market—it’s reshaping renovation trends, too. Rather than buying a new home to get all the upgrades they want, people are staying in their current homes and investing in renovations that suit their lifestyle. To learn what’s behind the real estate shift and how it’s impacting the renovations homeowners are taking on, we turned to the experts.

While high mortgage rates and steep property prices are part of the reason why many people are staying in their current home, that’s not the whole story. “Even if rates do come down, I think many people have discovered there’s something deeply satisfying about shaping a home around their family instead of constantly chasing the next one,” says realtor Jake Kennedy.

Ahead, we dive deeper into why the current market is fueling the rise of the forever home, as well as the types of renovations homeowners are tackling as a result.

Why Homeowners are Staying Put?

High mortgage rates play a significant role in why many homeowners are choosing to create a forever home rather than moving every few years. “If you have a pre-pandemic mortgage between 2% and 3% there is a reluctance to trade it for one that is twice that,” Kennedy explains. If, on top of that, you like your location and neighbors, he says it can make more sense financially to move walls rather than move addresses.

And while finances are certainly a key factor, Kennedy believes mortgage rates are not entirely responsible for people wanting to stay put. “I also think many people have watched their parents stay in the family home for decades, and that’s influencing how they are thinking about their own homes,” he shares. Noting that people generally repeat what has been modeled for them, he says homeowners are asking themselves, “How can this house work for our family for the next twenty years?”

How This Mindset is Shaping Renovation Trends?

For many years, home renovation trends were driven by increasing resale value. As more people consider staying where they’re at, the focus of renovation projects is changing from what’s going to fetch a higher selling price to what’s going to increase quality of life. “Right now everything is about functionality,” Kennedy says. His professional observation is that homeowners want a house that makes their life both easier and calmer.

“Naturally, if your need is more square footage, you will put an addition on but there are lots of renovations focusing on the layout and flow of homes,” the realtor shares. The main difference is the driver behind this; Kennedy points out not all of the renovations seem to be focused on improvements for the next buyer, instead, people are thinking about their own quality of life and current needs. “That’s a healthy shift because homes should work for the people living in them today, not the theoretical buyers in the future,” he states.

One of the biggest renovation trends he is noticing are ADUs, or accessory dwelling units. This is a secondary living space such as an in-law suite, apartment, or cottage built on the same property as the primary single-family home. “Lots of people are building ADUs, whether it is for multi-generational living or to bring in additional income through either short or long-term rentals,” Kennedy says.

Is The Forever Home a Real Estate Trend That’s Here to Stay?

When it comes to the longevity of this current real estate shift, Kennedy says there are several things at play. “As long as mortgage rates remain high, I think more homeowners will maintain this mindset,” he says. He adds that the financial advantage of having a 2% to 3% mortgage rate is enormous in today’s economy. “Unless a move is required by work or family, it is hard to fault people for staying put,” he says.

Kennedy adds that world events in the last few decades have also contributed to how we view the home and what it means. As a millennial himself, the real estate agent notes he’s lived through more than a fair share of once-in-a-generation events. “The dot-com bubble, 9/11, the 2008 housing crash, and the pandemic have all impacted how we think about money and homeownership,” he concludes.

The “Forever Home” Trend : Why More Homeowners are Renovating Instead of Moving? by Maria Sabella | Better Homes & Gardens