The real estate market has picked up after the period in which doom and gloom reigned supreme. Last year, 1,226,000 new homes were built, outpacing 2007 numbers. And if we take a look at the latest survey from Houzz, we notice that more than a half of homeowners plan to take on renovation this year.
What is more, they aspire to conduct multi-room projects and invest more money than before. Americans are poised to spend near-record $317 billion on home improvement. Decorating is still the most prominent undertaking, but renovating does not lag far behind.
Spending on an upswing
Last year, there was a 22% increase in spending on renovations compared to 2015. This upward trajectory is expected to continue in 2017 and beyond. Baby boomers and older homeowners still spend more, but millennials are not shying away from home renovation projects either.
The DIY approach is tempting, although we have witnessed a greater reliance on professionals, design services, and service specialists in recent years. A vast majority of homeowners (87%) states that they have hired a pro to handle some or all of the work.
One of the drivers behind renovation is the urge to personalize and customize a home. First-time home buyers and repeat home buyers are more inclined to go down this road. Indeed, those who purchase a new abode do not hesitate to gut the interior.
Some of them are not satisfied with merely sprucing up and tearing down walls in order to fulfill their vision. On the other hand, long-term homeowners tend to put off such decisions until they acquire financial means. This can also mean that they postpone it indefinitely.
Bathrooms and kitchens are still in
Kitchens and bathrooms still account for a bulk of spending, although projects that involve living quarters grow at a more rapid pace. The kitchen remodeling costs $19,100 on average, while the master bathroom remodel goes around $11,700.
Interestingly enough, the focus has shifted on smaller kitchens as well as minor remodels and those that involve a general contractor. Similarly, bathroom remodeling involves more small-scale projects, such as installing quality baths or replacing cabinetry and countertops.
Small homes, big dreams
Along the similar lines, it is another trend that homes are getting smaller but fancier. You cannot blame people for steering away from homes with high operating costs and maintenance requirements. Hence, it does not come as a surprise that these priorities also lead them when carrying out a renovation.
Functionality is held in high regard and many homeowners embrace the open-floor plan, expand storage space, and spend on assembling a new laundry room. They also purchase energy-efficient appliances and smart home systems.
The realm of interior design changes fast, but there are some trends that are expected to rock 2017. Cool, white tones still dominate many interiors, but warm materials, such as terracotta tiles grow more popular. Cork is making a comeback and poses a nice way to add texture and warmth.
As for the color palette, navy and midnight blues will finally take a back seat and make way for shades of dark green. Likewise, the appeal of pastel tones wanes in the presence of new, jewel hues. Finally, upholstered solutions are gaining in popularity, especially in the form of bedheads.
Hurdles and roadblocks
There is much room for optimism, but that does not imply that everything looks rosy. Homeowners still face a wide array of challenges on the way to successful renovation. Not blowing the budget is a primary concern for 36% of them, which is to be expected. Keeping the expenditures in check is no cakewalk when you are new to the world of renovating.
Furthermore, many people struggle to find the right products and materials or suitable service providers. Finally, interior renovation can take a better part of the year to complete, meaning that daily routines, habits, and lifestyle are seriously disrupted.
Smart tech and automation
A cost has a vital role to play in the decision-making process, but it has always been that way. What is more interesting is an increased value placed on health and smart teach dimensions that converge. For instance, one-third of the homeowners point out that kitchen remodel has prompted them to lead a healthier lifestyle.
Investment in home automation and security systems is on the roll as well and it is quite peculiar that frequency of home automation upgrades is higher than heating and cooling projects. The marvels of modern technology have spurred some amazing trends, such as high-end indoor gardening.
Home, revamped home
The housing industry may not grow by leaps and bounds, but it is certainly on solid footing. It looks like 2017 will be a year of steady progress and this outlook is in line with findings from the previous years. One of the strongest indications is that the average investment in living spaces is on the rise.
A new generation of homeowners enters the market and on the frontier of innovation, cutting-edge technology and bold design thinking make strides. There is no shortage of intriguing renovation trends, and staying on top of them will be pivotal to the success of all players in the real estate sector.