The time spent indoors over the past year has sparked an increase in remodeling projects to make staying home more comfortable. Given the ongoing effects of the pandemic, this year seems to be on the same track.
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Despite the economic downturn caused by the pandemic, home renovation spending rose 3% to $ 271 billion last year. This emerges from a new report from the Joint Center for Housing Studies at Harvard University. This year, JCHS is forecasting spending of $ 281 billion.
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The expected increase in renovation spending is due to the easing of lockdown restrictions and increasing signs of economic recovery. Homeowners are using the savings from a year of lockdown (and possibly the money released by refinancing) to improve the comfort of their homes.
“Many are ready to adapt their homes to their new normal lifestyles,” said Nichole Straub, general manager of Discover Home Loans. “Many have redistributed their disposable income from investing in travel and entertainment into home improvement projects.”
Fifty-eight percent of those surveyed by Discover Home Loans are planning home improvement projects this year. Of these, 83% say their main motivator is to make their home more comfortable.
Mischa Fischer, chief economist at HomeAdvisor home improvement store, notes that 40% of homeowners surveyed by the company said making their home more suitable for their lifestyle was the main reason for starting a renovation project, compared with 25% in 2019.
The mindset, says Fischer, has changed to: “The house is not just this good that I own, it is actually this place that has to provide all these services for me, and so I am willing to spend money on it here, too good value for money. “
Choosing the right renovation project
Not all renovation projects are created equal. According to David Haas, co-founder of PowerPay, a digital loan platform that provides home renovation finance, most home renovation projects will add value to your home. Just don’t expect your entire investment to pay for itself.
According to Haas, a return on investment of between 75% and 95% is expected depending on the project. Refurbishments like replacing your siding with vinyl had a 75% return on investment, according to Remodeling Magazine’s 2020 Cost-Value Report. On the other hand, replacing a garage door resulted in a 95% ROI.
According to Home Advisor’s State of Home Spending report, homeowners spent an average of $ 13,000 on renovation and maintenance projects over the past year.
According to Fischer, the key to getting the most out of your investment is finding the right balance between affordability and visual impact. Your return on investment “depends on how much the buyer is evaluating this change.”
Niche decorations or unique design features might work for you, but they might not be as appealing to potential buyers, especially if they have to spend money on a remodel if they don’t like it. In other words, a Gothic-themed house is fine if you are the one who lives in it but may not make the best impression on house hunters.
Another component of any renovation is quality. Fisher recommends that a qualified remodel technician ensure that you receive the renovation you want in a timely manner. HomeAdvisor recommends reading reviews and asking for references. If you have friends or family who have done a similar renovation project, ask about their experience with their contractor. When you’ve narrowed your list down to a few potential candidates, review their licenses and request current samples of their work.
“With a good quality professional, you get a project planner, a designer, someone who is honest, has integrity, that’s number one,” says Fisher.
Top home renovation projects for 2021
The most popular home renovation trends for 2021 are projects that don’t need to cost a lot of money but can have a huge visual impact on the appearance of a home.
Bathroom remodeled
According to a survey by HomeAdvisor, bathroom renovation is the most popular planned renovation project this year.
Let’s face it, we spend a lot of time in our bathrooms. An upgrade that makes this important space more comfortable, efficient, and practical makes a lot of sense and can be a selling point for any potential buyer. Changing tastes will first show in bathrooms and kitchens. Modern toilets, faucets and shower heads are not only aesthetically pleasing, they also save water and help reduce the running costs of the house.
Bathroom remodeling costs averaged $ 13,401 over the past year, according to HomeAdvisor’s True Cost Report. You could easily spend a lot more, but remodeling the bathroom is more economical than doing a kitchen renovation, for example, which averaged more than $ 35,000.
Interior painting
This was last year’s most popular project and is the second most planned project this year according to HomeAdvisor. An interior painting project had an average cost of $ 2,007, a relatively inexpensive upgrade that can also have a noticeable impact on a home.
If you are thinking of painting with a view to reselling your home, pay attention to the colors you have chosen. The buyer needs to be able to imagine their furniture in your home. Hence, it is best to look for neutral tones that will blend in well with any style.
The same applies to the exterior painting. If the exterior paint goes wrong, new paint can make your home stand out from others in the neighborhood. Keep in mind that if your goal is to sell your home, you may not want to paint your color upgrade in your favorite baseball team’s color scheme.
New flooring
Replacing your old floor is the third most popular renovation project planned this year. It’s relatively economical with an average cost of $ 4,680.
Replacing worn carpets, tiles, or wood with new flooring not only makes your home more comfortable but can also add a cool design feature that will make your home more attractive when it comes to selling.
Keep in mind the latest flooring trends when replacing your old one to find out what is not only more durable but can add value to your home as well. According to Realtor.com, houses with hardwood floors sold 2.5% more than houses with other flooring in 2019, achieving an ROI between 70% and 80%.
More of money:
Are you dreaming of a DIY renovation? This is how you redesign without sacrificing your pride or property value
7 simple tips to refinance your mortgage while still keeping interest rates low
How To Buy A New Bauhaus: A Beginner’s Guide
The rush to buy a home can lead to serious regrets. Here’s how not to hate your home
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