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The incredible, shrinking home renovation project

Email|Link|Comments (3) Posted by Scott Van Voorhis June 4, 2009 10:30 AM

Small, cosmetic changes are in when it comes to home renovations, and big is definitely out.

That’s the take from a couple of new surveys on home remodeling trends that find while the sector is certainly down, it’s not entirely out either.

Homeowners across the country spent $124.6 billion in home improvements during the first three months of the year, down 8 percent from the first three months of 2008, Harvard University’s Joint Center for Housing Studies finds.

And that trend is expected to accelerate, for a total decline of 12 percent by year end, the center estimates.

Builders are adapting by helping homeowners scale back plans and choose less costly materials.

Some cities are also looking at ways of encouraging homeowners to spruce things up, with Denver looking to wave permit fees for everything from small upgrades to major renovations.

Clearly, the recession and the still rising tide of unemployment are factors here.

But while plans for supersized garages and living rooms are out, smaller projects are in.

The number of countertop projects rose by nearly 40 percent, according to a recent survey by ServiceMagic, an online home renovation website.

By contrast, requests for bathroom remodels fell 10 percent in the first three months of the year.

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3 comments so far...

If you can afford to do a modest home improvement project, there are contractors and suppliers who might welcome the opportunity to take on a small job in a recessionary economy. The price might be more reasonable than it would have been two or three years ago.

Economic recovery can begin with small steps taken by individual consumers. If every homeowner in the US undertook a $1,000 remodel or repair project next week, that's approximately $75 billion in home improvements. Every billion helps.

Posted by Jim June 4, 09 03:56 PM

A good friend of mine, who is a top notch contractor, has a business model where he "coaches" his clients to how to help him to get a job for less. He will show them how to demo, tell them what supplies to pick up at the store, how to drywall, etc... They save money, and in turn he gets more clients because they love the business model. While many contractors are unemployed, his business is booming.

Posted by Middle June 5, 09 09:12 AM

Who's your friend. We might have a couple of projects for him!

Posted by Eve June 7, 09 07:40 PM