Charles Munn
From Your President of The Pee Dee REALTOR ® Association
WASHINGTON ( April 6 , 2022 ) – U . S . households saw homeowners and families embark on a wide variety of renovations and remodeling projects over the past year . That is according to new findings in the 2022 Remodeling Impact Report , a joint study from the National Association of Realtors ® and the National Association of the Remodeling Industry .
This year ’ s report analyzes a number of home improvement aspects , including why people decide to remodel , the general costs of specific remodeling tasks , and the fulfillment experienced after a successful project has been completed .
“ Our study revealed that homeowners tend to undertake a remodeling project for any number of reasons ,” said Jessica Lautz , vice president of demographics and behavioral insights at NAR . “ In some instances , homeowners were content with sprucing up a room with a simple paint job , while in other cases , families decided to take on the task of renovating an entire attic or basement to add additional living space to their home .”
The report notes that Americans spent $ 420 billion in 2020 on home remodeling ventures . Ninety percent of NARI members cited a greater demand for contracting remodeling work during the course of the pandemic . Three out of five NARI members – 60 % – said the scale of the projects grew either in a larger project or remodeling more than one room due to the pandemic .
“ This report is the first one to measure the impact of the pandemic on the price and relative value of various remodeling projects ,” said Chris Egner , MCR , CKBR , CRPM , UDCP , and president of NARI . “ We are glad that NARI members , who are among the most experienced remodelers , could provide realistic estimates of remodeling costs in line with the criteria specified in the survey .”
Although 83 % of consumers stated that they would have remodeled regardless of the pandemic , 86 % reported that remodeling one area of their home then inspired them to remodel other areas of the house .
The exact reasons why homeowners decided to modify their living spaces varied . Thirty-five percent of owners said the single most important result from their remodel was better functionality and livability . Upon completion of their project , 22 % said they had durable and long-lasting results , materials and appliances . Fourteen percent reported beauty and aesthetics as a result of their remodel .
“ The pandemic has changed the way we use our homes , and many of those changes are here to stay ,” said Lautz . “ As a result , homeowners needed to reconfigure or remodel how they use their home and maximize space .”
More than a third of owners ( 35 %) hired a professional for their entire project , while 28 % reported that they hired someone for the labor but purchased the necessary materials . Twenty-two percent of homeowners did the full project themselves , from start to finish .
The NAR / NARI report aimed to calculate consumers ’ viewpoints toward their projects upon completion . Projects that made the renovators want to remain home , or remodel jobs that sparked an increase of enjoyment among occupants , received a high Joy Score , with 10 being considered a perfect Joy Score . Some tasks that were awarded scores of 10 were as follows : painting a home ’ s entire interior , painting one room , adding a home office , hardwood floor refinishing , closet renovation , and insulation upgrades , among other labors .
Hardwood floor refinishing received a 10 Joy Score because the homeowners felt happiness and satisfaction in their home after undertaking the upgrade . Sixty-four percent of those polled answered that they have an increased sense of enjoyment when they are at home now that their hardwood flooring is installed . Another 64 % said just thinking about the completed project gives them a “ major sense of accomplishment .”
Adding a new home office is another task that earned a perfect Joy Score based on homeowners ’ sentiments . Ninety-one percent of consumers said they have a greater desire to be home now that their office is in place . Seventy-three percent said they have an increased sense of enjoyment when they are home .
The NAR / NARI report also examines numerous remodeling tasks and provides a cost recovery estimate for the projects . The genuine cost of each remodeling project and cost recovery are influenced by many factors , including project design , quality of materials , location , age and condition of the home , and homeowner preferences .
“ Quite often , an added benefit to home renovations is the possibility of an increase in the home ’ s value , which is a reason why some people remodel ,” said Lautz . “ This is especially advantageous to a homeowner who may be considering selling their house or converting the home to a rental property .”
REALTORS ® provided an estimate of the likely dollar value each project would add to a house during resale . In comparing that dollar value to the estimated cost of each job provided by NARI members , a Recovered Project Cost percentage was tabulated . In regard to interior projects , the highest percentage cost recovered was from refinishing hardwood floors at 147 %. New wood flooring was at 118 %, and an insulation upgrade was at 100 %. Among exterior projects , new roofing and a new garage door both recovered 100 % of the project costs .
Kitchen upgrades were also popular among homeowners , with the task receiving a 9.8 Joy Score . The top reason ( 32 %) to take on a kitchen overhaul was the desire to upgrade worn out surfaces , finishes or materials . The second top reason ( 20 %) was to add features and improve livability .
According to NARI remodelers ’ cost estimate , the average kitchen remodel would be about $ 45,000 . Realtors ® estimated that $ 30,000 of that sum could be recovered as a result of the renovation . That would be a 67 % recovery rate .
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