Spaces Designer Homes – Why More West Michigan Families Are Remodeling Instead of Moving
- Feb 26
- 4 min read
West Michigan families are staying put. They are fixing what they have instead of packing boxes. High mortgage rates and low housing supply are changing the math.
Spaces Designer Homes is a Grand Rapids-based custom builder and remodeler serving West Michigan and the Lakeshore. They work with families every week who face this exact choice. Build new. Move. Or improve the home they already own. Their team sees the numbers, the stress, and the results up close.
“We had a family in Rockford who wanted to move for a bigger kitchen,” their team shared. “When we ran the numbers, moving would have added $900 a month to their payment. We remodeled the kitchen and finished the basement for less than that annual increase.”
The shift is real. And it’s accelerating.
Mortgage rates changed the game
The 3% vs. 7% problem
Just a few years ago, mortgage rates hovered around 3%. Today, rates are often closer to 6-7%.
That difference is massive.
On a $400,000 loan, the jump from 3% to 7% can mean more than $900 extra per month. That’s over $10,000 more per year. Same house price. Very different payment.
Many West Michigan homeowners locked in low rates between 2020 and 2022. If they sell now, they lose that rate.
“People call us and say, ‘We need more space,’” the team explained. “Then we ask what rate they have. When they say 2.9%, the room gets quiet. That rate is a golden ticket.”
Giving up a 3% mortgage for a 7% one feels like a step backward. So families look at their current home and ask a new question.
What can we change instead?
Inventory is tight
Fewer homes, more competition
Housing inventory remains limited in many parts of West Michigan. Fewer homes are listed. Good ones sell fast.
National data has shown housing inventory down from pre-2020 levels in many regions. Locally, buyers still face bidding wars in popular school districts and lake communities.
That means:
Higher sale prices
Fewer choices
Faster decisions
More stress
“You find a house you like,” the team said. “You tour it on Friday. By Sunday, there are three offers. And it still needs work.”
Families are realizing something important. If they move, they may still need to remodel the new place.
So why not invest in the home they already know?
Remodeling ROI is strong
Kitchens and bathrooms still pay off
Remodeling is not just emotional. It’s financial. Industry reports show that kitchen remodels can recoup 60-80% of their cost at resale. Bathroom remodels often return 60-70%. Finished basements and added living space also boost value.
Home improvement spending nationwide has exceeded $400 billion annually in recent years. That number stays high because homeowners see results.
But ROI is not just about resale.
It’s also about daily life.
“One client told us, ‘I don’t care about resale. I care about making breakfast without bumping into my kids,’” the team shared. “We knocked down a wall. Added an island. Now five people can stand in that kitchen and no one is elbowing anyone.”
That kind of return does not show up in a spreadsheet. But it matters.
The cost comparison: Move vs. Improve
Let’s break it down in simple terms.
Moving costs include:
Realtor fees, often 5-6% of sale price
Closing costs
Moving expenses
Higher mortgage rate
Possible repairs in the new home
On a $450,000 home, 6% in realtor fees alone is $27,000. That money does not build equity. It covers the transaction.
Now compare that to a $150,000 remodel that upgrades a kitchen, updates bathrooms, and finishes a basement. That investment improves daily living and adds value.
“We walk families through both columns,” the team explained. “When they see the full moving cost on paper, many say, ‘Why are we doing this again?’”
The math often favors remodeling.
Homes are aging
The median age of homes in the U.S. is over 40 years. Many West Michigan neighborhoods were built in the 1970s, 80s, and 90s.
That means:
Closed floor plans
Smaller kitchens
Limited storage
Outdated finishes
Families want open layouts. Mudrooms. Home offices. Bigger showers. More light.
Instead of chasing those features in a new listing, many are creating them.
“We remodeled a 1994 colonial in Grandville,” the team said. “It had tiny rooms and a formal dining space no one used. We opened it up. Added built-ins. Gave them a real mudroom. They told us it feels like a brand-new house.”
Emotional costs matter too
Moving is not just money. It’s disruption. New neighbors. New schools. Longer commutes. Leaving memories behind. Remodeling lets families stay rooted.
“Kids don’t have to change schools,” the team explained. “You keep your backyard. You keep your street. You just make the house work better.” That stability has value. Especially for families with young children.
What homeowners should do before deciding
Step 1: Run the real numbers
Compare your current mortgage rate to today’s rates. Calculate the monthly difference on a similar-priced home.
Add realtor fees and closing costs.
Write it all down.
Step 2: List your pain points
Is it the kitchen? Storage? A lack of workspace? Be specific.
Vague goals lead to vague solutions.
Step 3: Get a professional opinion
Bring in a builder early. Ask what changes are possible within your existing footprint.
“People are surprised by what we can do without adding square footage,” the team said. “Sometimes moving a staircase or reworking a wall changes everything.”
Step 4: Think long-term
Are you planning to stay five years? Ten? Longer?
The longer you stay, the more sense remodeling makes.
The bottom line
High mortgage rates changed the housing market. Low inventory made it harder. Strong remodeling returns made staying attractive.
Families are not stuck. They are strategic.
Spaces Designer Homes sees this shift every day. “Five years ago, more people asked about building new,” their team said. “Now the first question is, ‘Can we make this house work?’ Most of the time, the answer is yes.”
Remodeling is not the backup plan. For many West Michigan families, it is the smarter move.
Before you list your home, run the numbers. Walk your space. Imagine what it could become.
You might not need a new address.
You might just need a better layout.
