For a peek at the economics of home improvement in the UK check out this article on 'self-built homes. In that country new construction by self-builders (any construction in which the design and construction is organized by the owner or their own use) hover around 18,000 homes per year.

The surprise for me is that their tax system there actually favors new construction over restoration!

"There is also the tax issue. Self-builders are entitled to claim back VAT on the cost of most building materials and labour for their project - which makes it a lot more appealing than doing up an older house, which has no tax benefits whatsoever, unless the home has been empty for at least three years.

Not what I'd expect from a nation which would certainly have its fair share of older homes.