Dave Pekel of Pekel Construction and Remodeling, Wauwatosa, says homeowners choosing to remodel rather than build new do it because they love where they live. "There usually is a component to the house that they are not satisfied with," Pekel says. "Either the family dynamic has changed significantly — teens today live a lot differently than when I was that age. Or a parent is moving in, or kids are bouncing back from college."

Bob Henderson of Henderson Group, Mequon, sees neighborhood loyalty particularly high in the village of Whitefish Bay. "People who buy in Whitefish Bay really want to stay there," Henderson says. "There is a downtown feeling with Silver Spring Drive. They love the neighborhood and the schools, so we see a lot of remodel business there. People want more modern design, more space, but they generally like their homes. If you are looking at a vacant lot you have to go pretty far north or west, and the cost of land is very high."

Steve Clavette with Stone and Banister in Pewaukee says people can experience "sticker shock" when seeing all that goes into building. "The available land is farther out; you have to add a driveway, walks, landscaping, interior decorating, window treatments, commuting costs," Clavette says. "For some people that’s fine, but for many it is just more cost-effective to stay where you are."

Henderson says some recent clients added 1,500 square feet to their North Shore suburban home for about $400,000 after looking at building a home for $700,000. "They had the land, they loved the lot," he says. "It made more sense for them to add to their home. Some people don’t feel like they need to replace their house, maybe update the kitchen and reconfigure the space. A lot of people really like the character and charm of an older home. We worked on a remodel of an 1890s farmhouse where we added a garage, family room, master suite, additional bedroom, exterior work, insulation. It is a lot, but the owners love this old house."

Pekel cites similar experiences, noting that he recently worked on a home in Elm Grove for a growing family. "The owners had a small Cape Cod in Elm Grove on a nice lot," Pekel says. "The remodel doubled the square footage of the home and preserved the charm of the home in a great neighborhood."

Clavette says the slower real estate market has added a few steps to the home-building process. "A few years ago, people who wanted to build and had a house to sell could easily take out a bridge loan to cover the time between," he says. "Now we see a lot of people selling a home and moving to an apartment before taking the steps to build. With remodeling, you might be out of your kitchen for six or seven weeks, but you don’t need to move twice."

Pekel says putting money back into your home is generally considered a good long-term investment. "There is a degree of predictability in remodeling an existing home," Pekel says. "You know what you have to work with, you know what your commute is. The cost of fuel impacts folks in the wallet and we see more people trying to retrain themselves to save money."

Pekel says a remodeling factor that has recently come into play more frequently is homeowners making more environmentally friendly choices. "It is an informed perspective that we are seeing more of," Pekel says. "Adding onto an existing structure — there is sustainability to the materials."

Henderson says that for some neighborhoods, upgrading your home starts a trend. "The top reason people don’t want to move is the neighborhood," Henderson says. "So they make upgrades to their existing home; in some of the more desirable neighborhoods, others will improve their homes as well. If you are going to stay in the same house for a long period of time, you will get back what you put into improvements." M