New hardwood floors and home offices bring the most joy
WASHINGTON (April 6, 2022) — American households have seen homeowners and families embark on a wide variety of remodeling and remodeling projects over the past year. That’s according to new findings from the 2022 Remodeling Impact Report, a joint study by the National Association of Realtors® and the National Association of the Remodeling Industry.
This year’s report analyzes a number of aspects of home improvement, including why people decide to renovate, the overall costs of specific renovation tasks and the satisfaction felt after completing a successful home improvement. project.
“Our study found that homeowners tend to undertake a renovation project for a number of reasons,” said Jessica Lautz, vice president of demographics and behavioral data at NAR. “In some cases, homeowners were content to spruce up a room with a simple paint job, while in other cases, families decided to undertake an entire attic or basement renovation. to add extra living space to their home.”
The report notes that Americans spent $420 billion in 2020 on home improvement projects. Ninety percent of NARI members cited greater demand for renovation work contracts during the pandemic. Three in five NARI members – 60% – said the scale of projects had increased either in a larger project or in remodeling more than one room due to the pandemic.
“This report is the first to measure the impact of the pandemic on the price and relative value of various renovation projects,” said Chris Egner, MCR, CKBR, CPMR, UDCP and Chairman of NARI. “We are pleased that NARI members, who are among the most experienced renovators, were able to provide realistic cost estimates for redevelopment that met the criteria specified in the survey.”
Although 83% of consumers said they would have remodeled regardless of the pandemic, 86% said that remodeling one part of their home then inspired them to remodel other parts of the house.
The exact reasons homeowners decided to alter their living spaces varied. Thirty-five percent of homeowners said the most important result of their renovation was improved functionality and livability. At the end of their project, 22% said they had durable and long-lasting results, materials and devices. Fourteen percent reported beauty and aesthetics following their renovation.
“The pandemic has changed the way we use our homes, and many of those changes are here to stay,” Lautz said. “As a result, homeowners needed to reconfigure or remodel how they use their homes and maximize space.”
More than a third of homeowners (35%) hired a professional for their entire project, while 28% said they hired someone for the labor but purchased the materials needed. Twenty-two percent of owners carried out the entire project themselves, from start to finish.
The NAR/NARI report aimed to calculate consumers’ views on their completed projects. Projects that made renovators want to stay home or renovations that elicited an increase in occupant enjoyment received a high joy score, with 10 considered a perfect joy score. Some tasks that received 10 ratings were: painting the entire interior of a house, painting a room, adding a home office, finishing the hardwood floor, remodeling closets, and improving insulation, among other works.
The hardwood floor finish received a joy score of 10 because homeowners felt happiness and satisfaction in their homes after undertaking the upgrade. Sixty-four percent of respondents said they feel an increased sense of enjoyment when they are home now that their hardwood floor is installed. Another 64% said that just thinking about the completed project gave them a “major sense of accomplishment.”
Adding a new home office is another task that got a perfect joy score based on homeowner sentiment. Ninety-one percent of consumers said they feel more like being at home now that their desk is in place. Seventy-three percent reported having an increased sense of pleasure when they are at home.
The NAR/NARI report also reviews many remodeling tasks and provides an estimate of cost recovery for projects. The actual cost of each renovation project and cost recovery is influenced by many factors, including project design, quality of materials, location, age and condition of the home, and homeowner preferences. .
“Very often an added benefit of home renovations is the possibility of an increase in the value of the home, which is why some people renovate,” Lautz said. “This is especially beneficial for a homeowner considering selling their home or converting their home to a rental property.”
Realtors® provided an estimate of the likely dollar value each project would add to a home upon resale. By comparing this dollar value to the estimated cost of each job delivered by NARI members, a percentage of the project cost recovered was tabulated. For interior projects, the highest percentage of cost recovery came from refinishing hardwood floors at 147%. New wood flooring was 118% and insulation upgrade was 100%. Among the exterior projects, a new roof and a new garage door recovered 100% of the project costs.
Kitchen upgrades were also popular among homeowners, with the task receiving a joy score of 9.8. The top reason (32%) for undertaking a kitchen renovation was a desire to improve worn surfaces, finishes or materials. The second main reason (20%) was to add functionality and improve roominess.
According to NARI Renovators’ cost estimate, the average kitchen renovation would be around $45,000. Realtors® estimated that $30,000 of this sum could be recovered as a result of the renovation. That would be a recovery rate of 67%.
About the NAR and NARI survey
In the fall of 2021, homeownership site HouseLogic.com surveyed consumers about the latest home improvement project they undertook. A total of 1,182 respondents completed the online survey. The joy score was calculated by combining the share of those who were happy and those who were satisfied seeing their project completed and dividing the share by 10 to create a ranking between 1 and 10. Higher joy scores indicate a greatest joy of the project.
Additionally, in the fall of 2021, NARI emailed a cost survey to its 5,778 members. A total of 210 responses were received. The survey achieved an adjusted response rate of 3.6%. Respondents were asked to consider certain parameters when evaluating the cost.
In February 2022, NAR emailed renovation project surveys to a random sample of 95,921 members. A total of 4,792 responses were received (see report for full methodology).
The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
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