According to a recent report, home renovation spending will grow by 5.3% this year, and this is largely due to price increases rather than volume. Experts predict remodeling projects will pick up significantly in the second half of the year, as hopefully interest rates will drop to a level that will make more consumers comfortable. Interestingly enough, in the past 24 months, there have been more new net accounts added to access ‘‘Home Equity’ (HELOCs + Cash-Out) than in the previous 12 years combined. While most homeowners aren’t pulling from these accounts quite yet—due to uncertainty in the economy—experts predict the latter half of the year will bring heightened renovation activity.
Here’s a look at what’s trending on the home renovation front:
Emphasis on natural materials
Natural materials are making a comeback after years of being shelved away. Suddenly consumers are craving organic materials like natural stone, flooring, and unpainted cabinets. Solid surface countertops like quartz are still popular, but increasingly, more and more of those renovating are opting to use natural materials like quartzite and granite. Wooden cabinets are being requested more and more and are the most requested material for bathroom vanities at the moment, beating out the all-time classic white cabinet look.
Kitchen renovations are high priority
The desire to entertain at home is fueling many kitchen renovations right now. Homeowners with smaller, closed-off kitchens are rushing to take down walls and expand their space, creating a central hub in the home and a dedicated entertaining hot spot. Overall spending on kitchen renovations continues to ease forward, as the median spend for major remodels of small kitchens rose by 9%, to $35,000, while the median spend on larger kitchen remodels comes in around $55,000. Renovations for upscale kitchens start at $150,00 for large kitchens and $90,000 for smaller kitchens.
Bathroom renovations
Bathrooms are nearly just as popular in terms of renovation projects and spending, and in fact, renovating a guest bathroom is just as popular as remodeling a kitchen right now. Homeowners are opting to install zero-entry showers for both a seamless look and to aid in aging in place, water-efficient fixtures, steam showers, and natural materials. Mixing of materials, whether that’s mixing metals and/or combining different types of tiles, is very popular right now. Homeowners can expect to spend about $17,000 to remodel a small primary bathroom and $25,000 for a larger bathroom. Renovators choosing custom and luxury materials can expect to spend between $40,000 and $70,000.
Outdoor improvements
Home exterior upgrades are still popular, as an increasing number of homeowners desire to double their entertaining space while also creating a personal oasis outdoors for their families. Most upgrading or adding a deck opt for low-maintenance materials like composite decking, as it offers the warmth and charm of real wood without the ongoing maintenance.
Homeowners eager to entertain outdoors as much as possible are opting to look beyond the traditional grill, often choosing to splurge on luxury outdoor kitchens complete with natural material countertops and pizza ovens in addition to custom features designed to help you whip up a culinary feast. The latest figures show that a modest deck addition can run homeowners about $17,615, while a composite deck of modest size will run just over $24,000.
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Allen Tate is the Carolinas’ largest real estate company based on closed sales volume, with more than 70 offices and 1,800 Realtors in the Charlotte, Triad, Triangle, High Country, Highland/Cashiers and Asheville/Mountain regions of North Carolina and the Upstate and Low Country regions of South Carolina. Allen Tate is a partner of Howard Hanna Real Estate, the largest privately held real estate broker in the United States. The full-service real estate company has 480 real estate, mortgage, insurance, title, and escrow service offices and more than 15,000 sales associates and staff across 13 states. For more information, visit www.allentate.com and www.howardhanna.com.
