The popularity of home renovation and repair in 2020 continues into 2021. Homebuyers who ended up with fixer-uppers will be working to make their new homes more livable. Homeowners who decided to stay put will be adding their dream features to their homes.
According to data from Improving America’s Housing 2021 report of the Harvard University Joint Center for Housing Studies, the annual expenditure of the home remodeling market increased from 406 billion in 2019 to 419 billion in 2020 and 433 billion in 2021. Its Leading Indicator of Remodeling Activity (LIRA) under the Remodeling Futures Program projects an increase in year-on-year growth from 3.5 percent at the end of 2020 to 3.8 percent by the end of 2021 and 4.8 percent by the first quarter of 2022.
The Center’s Remodeling Futures Program Associate Project Director Abbe Will stated that the increase in annual homeowner spending on remodeling is because of the shift from do-it-yourself projects to professional projects. Managing Director of the Joint Center for Housing Studies Chris Herbert stated that wider economic recovery would spur more major discretionary improvements than regular replacement and repair projects.
Trends in Outdoor Renovations
Many home improvement projects during the pandemic are about improving the outdoor areas around the home. People want to be able to relax outdoors but still within the safety of their property. National Association of the Remodeling Industry (NARI) president Doug King states that in his area, the top addition people make to their backyards are pools. To cover both hot and cold months, a homeowner can ask a swimming pool and hot tub builder to construct both on the property.
Homeowners who do renovations to improve property prices also do well with outdoor remodeling that improves the curbside appeal of the home. According to the 2021 Cost Vs. Value Report of Zonda Media, 11 out of the top 12 renovation investments in terms of cost recouped are outdoors. The only indoor project among the 12 is the minor kitchen remodel, which placed third and recouped 72.2 percent of the cost.
At the top of the list is garage door replacement which recouped 93.8 percent of the cost. The next ones in descending order are manufactured stone veneer at 92.1 percent of the cost, siding replacement with fiber cement at 69.4 percent, window replacement with vinyl at 68.6 percent, siding replacement with vinyl at 68.3 percent, window replacement with wood at 67.4 percent, wooden deck addition at 65.8 percent, entry door replacement with steel at 65 percent, composite deck addition at 63.2 percent, fiberglass grand entrance at 60.9 percent, and roofing replacement with asphalt shingles at 60.7 percent.
For homeowners doing renovations for themselves, investments in windows are not only for aesthetic appeal. When people spend a lot of time indoors, it becomes important to let in more natural light. This has a positive impact on mood and well-being while also saving on the use of artificial light.
Furthermore, it is beneficial to use specially coated glass that insulates to keep the home cool in summer and warm in winter. This adds to energy-saving and extends the life of heating and cooling equipment. With more awareness about green energy, people are also doing other environmentally friendly upgrades such as installing rooftop solar power systems, improving insulation, and setting up rainwater harvesting systems.
Trends in Indoor Renovations
Indoors, people find ways to create separate soundproof spaces for home offices and homeschooling. Open plan layouts are being redesigned to provide for these needs. Spaces usually neglected or used only for storage, such as basements and attics, are being rehabilitated and used.
Families who do not have enough space in their backyards create the spa experience in their bathrooms instead. People like baths and showerheads that have a rain shower effect. With more family members staying home all day, the addition of extra toilet-and-bath suites is also common.
Aging in place is another trend that fuels home renovation. According to Statista, in 2020, 16.9 percent of Americans were 65 years old or older, representing the greatest percentage of elderly in the population since 1950. In 2021, there are 73 million Baby Boomers born from 1946 to 1964 and aged 57 to 75.
According to a survey done by the U.S. Department of Housing and Urban Development for the U.S. Census Bureau, only 10 percent of homes in the country suit the special needs of seniors. In most of them, there is no bedroom, bathroom, and toilet on the first level, the bathroom has no handrails or shower seats, and the entrance has steps.
Many families are remodeling to accommodate elderly parents. Some install their suites on the first floor of the main house. Others build an accessory dwelling unit (ADU) beside the house.
Do That Project Now
With experts projecting more home repair and renovation projects to continue next year, it is best to start early. The cost of labor, as well as materials such as lumber, continue to rise, and the high demand is causing shortages that result in delays in deliveries. Also, the sooner you start, the sooner you can enjoy your home makeover.Tags: Housing Makeovers