HOME IMPROVEMENT IS ENERGY EFFICIENT.
They're also investing in improvements to make their homes more
energy efficient, according to a recent home remodeling and repair
report by ServiceMagic.com, a Web site that connects homeowners to
contractors.
Lisa Haney
"People are not going bigger and better, but improving what they
have more cost effectively," says Craig Smith, CEO of ServiceMagic.
For instance, instead of buying new furniture, they're repairing
what they have. Or they're deep cleaning the carpet in lieu of
replacing it.
All for good reason: Money is tight, lending standards strict and in
a sluggish housing market you might not recoup as much of your
remodeling investment at resale.
Home-improvement spending is expected to decline 12% in 2009,
according to
It's much different than the days when home-equity lending was
plentiful. Before doing anything, people are carefully considering
how they should spend their money.
In the days of easy credit, "there was a feeling of 'we can't go
wrong, let's just get started.' " says Bill Judson, an architect in
Meanwhile, those who do upgrade may be in for some bargains: Costs
of materials, including lumber and copper, have dropped somewhat,
Mr. Judson says, and labor costs are down as surviving contractors
struggle to compete.
Here are some trends on the home-remodeling front:
Kitchens and Baths
Some homeowners are still going through with full kitchen or
bathroom remodels these days, says Kimberly Sweet, editor in chief
of Kitchens.com. But they aren't the norm.
"A lot of people are making do with what they have, or maybe
choosing to spruce up a few things and not do a full remodel," Ms.
Sweet says.
Nationally, the volume of countertop-project requests rose 39% in
the first quarter of 2009, compared with the first quarter of 2008,
while major kitchen remodels are down 19%, according to
ServiceMagic's most recent Home Remodeling and Repair Index/Survey.
The data come from the company's service requests; the site received
4.2 million requests from homeowners in 2008. Service requests for
bathroom remodels were down 10% in the first quarter of this year,
according to the report.
At the recent Kitchen/Bath Industry Show, affordable remodeling
products included liquid stainless steel to refinish appliances and
do-it-yourself backsplashes, Ms. Sweet says.
Re-facing or painting cabinets and updating cabinet hardware have
always been an option to remodel on a budget. For replacements,
there are improved cabinet options in thermofoil, she says.
Consumers still gravitate toward granite countertops, but other less
expensive -- yet still attractive -- countertop materials are
available, Ms. Sweet adds.
For those considering resale values, it might be best to go for
minor fix-ups. "Doing all the high end may not get you the return
you were looking for," Ms. Sweet says. "You don't want to be the
most expensive house on the block in this market."
Energy Efficiency, Curb Appeal
According to Remodeling Magazine's 2008-2009 Cost vs. Value report,
replacement projects that improve curb appeal -- including siding,
windows and decks -- are some of your best bets for recouping money
at resale.
Upgrading windows also can make a home more energy efficient.
ServiceMagic has seen more interest in projects including insulation
and solar-panel installation, which cut energy bills and are likely
eligible for government tax credits, according to the company's
report.
And some homeowners are investing in home energy audits, for a
comprehensive view of what can be done to increase efficiency, Mr.
Smith says. The cost: between $300 and $500.
"But people will pay that because the insight provided can save them
a lot of money down the road," he says.
An audit can help homeowners select projects. By completing tasks
such as sealing up attics and crawlspaces, installing better
insulation and tuning up air-conditioning systems, homes in Southern
California that took 60 to 80 cents per square foot to heat or cool
could cost 10 to 20 cents per square foot after improvements are
made, says Mr. Judson, the
Hot Tubs and TVs
Most home-improvement projects may be practical these days, but some
splurges are also becoming popular as market conditions force people
to stay in a home longer than previously planned and as the economy
has them spending more time entertaining at home.
As a result, some homeowners are buying hot tubs, spas and saunas,
as well as TVs and other home-theater components, Mr. Smith says.
Compared to large-scale remodeling projects, "hot tubs are not a
massive out-of-pocket expense," Mr. Smith says. And "with the prices
of flat-screen TVs coming down and the whole 'staycation'
phenomenon," updated media rooms also have appeal.
Amy Hoak at amy.hoak@dowjones.com