At Concept 32 / Closet & Storage Concepts we’ve definitely noticed a change in the marketplace. Home remodeling and kitchen remodels, specifically, have always been a part of our business. However, a full quarter into 2025 the volume of remodel work we are doing with our customers has increased significantly. With mortgage rates much higher than they were just a few years ago, many homeowners are facing a dilemma: move and take on a much higher interest rate or stay put and make the most of their current home. This phenomenon, known as the rate lock-in effect, is keeping homeowners in place and driving this surge in remodeling projects.

For those who secured ultra-low mortgage rates in the past, selling their home now would mean giving up a favorable loan for a new one with a much higher monthly payment. This financial barrier—often referred to as "golden handcuffs"—is leading more homeowners to invest in renovations instead of entering a challenging housing market. Kitchen remodels, home offices, kitchen pantry and scullery additions, expanded garage storage solutions, home bars, mudrooms, and bathroom makeovers are becoming popular ways to improve comfort, functionality, and resale value without sacrificing a low mortgage rate. Homeowners are falling in love with their homes all over again.

As a result, the demand for remodeling is increasing; homeowners are choosing to customize and upgrade their current spaces rather than uprooting their lives. Whether it's updating cabinetry, adding built-in storage, or creating a more energy-efficient home, remodeling is proving to be the smart financial choice for many. And we’re seeing it with our clients and previous customers coming back to us. If you’re feeling stuck due to rising rates, consider transforming your home into the one you’ve always wanted—without the financial burden of a new mortgage.

Some recent articles discuss this “rate lock-in effect” and its influence on homeowners choosing to remodel rather than move:​

"It's Too Expensive to Move—So Homeowners Are Remodeling" (Investopedia, March 2025):​

The article highlights how the challenging housing market, characterized by high mortgage rates and higher home prices, has led homeowners to invest in remodeling their current residences. Remodeling spend is projected to reach $608 billion in 2025*, continuing a trend initiated during the pandemic. Factors contributing to this boom include a strong labor market, high property values, and aging homes. * last year Leading Indicator of Remodeling Activity (LIRA) projected $466 billion for 2025.

"Home Depot Says More Homeowners Will Start Renovating as Mortgage Rates Remain High" (Realtor.com, February 2025):​

In this Realtor piece it notes how high mortgage rates and record-high home prices have led to a "lock-in effect” as fewer people want to trade in their low interest rates for higher ones. As a result, more homeowners are choosing to renovate their existing homes rather than move.

Knowing how this is affecting everyone, we can help. That kitchen remodel you’ve been contemplating or that custom closet system on your mind, these are projects we will do and make your home better yet also have you falling in love with your home again—why you chose it in the first place. Reach out to schedule your free consultation; our expert designers are ready to discuss your ideas and get your remodeling project off the ground.

The Concept 32 / Closet & Storage Concepts showroom is open Monday - Friday, 8am to 5pm and by appointment so you can stop in and view displays of every space in a house to get ideas for your remodel. Calling ahead to ensure one of our designers is available is recommended but not necessary. Feel free to browse at your leisure and explore the different materials and finishes that would look great in your home. Contact us today!