Aug 09, 2023
Research-Backed Trends in Remodeling
If you’re thinking of remodeling, you’re not alone. Whether you’’re motivated by a desire to enhance the home’s value for sale or a desire to enhance your quality of life for staying put, updated home features and functionality can be powerful. Remodeling ideally makes home maintenance easier, limiting the amount of future breakdowns and needed repairs. Remodeling, whether by a professional or DIY, can bring a renewed sense of pride to you too!
According to the National Association of REALTORS®, 62% of homeowners say their aim for remodeling is to increase their home’s value.[1] Additionally, homeowners surveyed in the 2023 U.S. Houzz & Home Study, as reported by NAR, expressed concerns about selling their home, mainly that their homes needed too many repairs and had outdated interiors.[2]
Major Indoor Remodeling Trends
In the survey of 46,000 homeowners, a few notable major trends emerged.
- Homeowners indicated that finding the proper, skilled contractors was the biggest challenge for renovation, followed by the challenges of finding the right projects and staying on budget. The demand for contractors, in particular specialty bathroom and kitchen remodelers, has been high and the wait for these tradespeople can be months-long in some areas.
- Homeowners wanted to expand their living space, moreso than reported in previous surveys. Kitchens, bathrooms, and living rooms were popular expansion zones, as the most frequented rooms of the house. This data is in concert with the data collected in NAR’s 2023 Profile of Home Buyers and Sellers, showing multi-generational buying is near an all-time high as more families are living together longer, prioritizing cost savings, caretaking, and quality time over independence and separation.[3] In both studies, more living space was desirable to accommodate more people in the home.
Major Indoor Remodeling Trends
In the survey of 46,000 homeowners, a few notable major trends emerged.
- Homeowners indicated that finding the proper, skilled contractors was the biggest challenge for renovation, followed by the challenges of finding the right projects and staying on budget. The demand for contractors, in particular specialty bathroom and kitchen remodelers, has been high and the wait for these tradespeople can be months-long in some areas.
- Homeowners wanted to expand their living space, moreso than reported in previous surveys. Kitchens, bathrooms, and living rooms were popular expansion zones, as the most frequented rooms of the house. This data is in concert with the data collected in NAR’s 2023 Profile of Home Buyers and Sellers, showing multi-generational buying is near an all-time high as more families are living together longer, prioritizing cost savings, caretaking, and quality time over independence and separation.[3] In both studies, more living space was desirable to accommodate more people in the home.
- Perhaps unsurprisingly, remodeling budgets are rising, as materials and labor costs have risen.[4] As homeowners seek to add value to their home, the median renovation budget rose 22% between 2021 and 2022. Ten percent of homeowners were willing to spend six-figure sums to accomplish their goals.[5]
- The kitchen was the most popular room to be remodeled and median spend on kitchen renovation was up 33% as compared to the year prior. Secondary and primary bathrooms are respectively second and third most popular renovated rooms of the home. Interestingly, according to John Burns Real Estate Consulting, as reported by the Home Depot, bathroom remodels often provide the highest return on investment, in particular adding chrome fixtures, updated tile floors and backsplashes, and installing handicap accessible, walk-in showers.[6]
- Renovations surrounding upgraded home systems can be attributed to the increasing median age of homes. Plumbing and electrical top the list of home systems that were renovated in 2022. Cooling and heating system updates were the most expensive home upgrades homeowners invested in. These reports correlate with the rising median age of homes in the U.S. and homeowners’ desire to keep them functional and increase resale value.[7]
- Homeowners predominantly used money from savings to cover the cost of their renovations, as many as 82% paying for the projects in cash. Twenty-eight percent relied on credit cards. Trending upward from 14% to 16% were homeowners who secured home loans to cover pricier projects.[8]
Outdoor Remodeling Trends
- 33% of homeowners, when surveyed about selling, indicated they were concerned their homes lacked curb appeal (3rd highest concern behind amount of repairs needed and outdated interiors.)[9] With this focus in mind, exteriors received a boost, with lawn and landscape recovering their cost 217% and 104% respectively.[10]
- The National Association of REALTORS® reported in the same study that pools and landscape lighting, while not maximizing return on spend, did maximize owner enjoyment. [11] Before allocating exterior renovation budget, NAR suggested homeowners consider whether they plan to stay or to sell in order to maximize return, for enjoyment or investment.
- Other popular outdoor remodeling projects trending upward focus on exterior living space. More homeowners considered installing outdoor showers, outdoor kitchens, awnings, firepits and other more luxe appointments to their existing backyards.[12]
- If you, like 33% of homeowners who have concerns about selling, are worried about your home’s curb appeal, we suggest these easy upgrades that add visual interest and attractiveness to your home’s exterior.
Final Thought
Whether you intend to live in your current home for many years to come or are planning to sell, always enlist a REALTOR®, your local real estate expert, who can assess your home, determine renovation priorities, understand your home’s value in the current market, and connect you with professionals who will complete the remodeling projects you need.
Find your REALTOR® by visiting
www.onekeymls.com/Directory and let them help you decide what remodeling project is right for you.
Related Article: Home Maintenance Checklist for August
Related Article: Steps to Take Before Listing Your Home
[1] National Association of REALTORS®
[2] Ibid.
[3] National Association of REALTORS®
[5] National Association of REALTORS®
[7] National Association of REALTORS®
[8] Ibid.
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