The Cost of Home Renovation: It’s not what it used to be
Room Remodels Most Popular Projects According to Carl Kerby, President of Westhills Company Builders, home additions and interior remodels are the most popular home improvement projects in Waynesboro and Augusta County, Virginia. Close behind are projects that involve flooring, landscaping, exterior painting or siding, and new appliances. Among room remodels, kitchens remain at the top of the list, with bathrooms and master bedroom/bathroom suites being very popular. Surprise Price Tags If it’s been 10-20 years since your last home renovation project, or if you’re considering your very first remodeling job, you may discover that costs may be higher than expected. Westhills Company Builders estimates the median cost for a mid-range kitchen remodel in the Waynesboro/Staunton/Augusta County, Virginia area is about $13,160-$37,005. The same project would likely have ranged between $6,000- $18,500 in 1999! Pricing varies by contractor, but having a high-quality final product depends on who you pick to do your job. You certainly get what you pay for when it comes to home improvement options. "If you think using a Pro is expensive, wait until you see what it costs to use an amateur," says Chuck Dennison, Vice President/Construction Manager of Westhills Company Builders. So why do things involved with home renovation and remodeling cost so much? 1) Construction materials are at an all-time high Construction costs continue to climb and are likely to fuel further hikes in home improvement costs in the year ahead. In fact, the rising costs of raw building materials have increased 6% annually since 2000, with new tariffs, rising fuel and transportation costs impacting prices even more. 2) Skilled labor isn’t cheap Skilled labor is more expensive now than ever before! The rising economy with record low unemployment rates has made it difficult for area builders and subcontractors to find skilled labor needed for specialized home improvement projects, which drives up labor costs. 3) Annual inflation raises costs to consumers An annual US Consumer Inflation Rate, basically at or above 2% since 2016, has been the rule of thumb in the burgeoning economy. Inflation pressures will continue to drive up home materials and labor costs as the new decade begins. US Home Market Outlook 2020 · Consumer spending on home improvement has risen 17% in the last 12 months. · Homeowners are spending more on home improvement projects than home maintenance projects. · For every $1 spent on home maintenance, homeowners are spending an average of $5 on home improvements. *Info from Realtor.com Even with home improvement projects at record costs, people continue to flood the market with new orders for home renovations. According to Realtor.com, the US real estate market is still years away from reaching an adequate supply of homes to meet current homebuyers’ demands. Despite improvements in new construction and short waves of sellers, the year ahead may once again fail to bring a solution to the existing home inventory shortage. In fact, 2020 inventories could reach historic lows.
Renovate for Luxury and Resale With a limited supply of homes available, many existing homeowners will continue to renovate what they have, either to make their homes more luxurious to live in, or to help in reselling residential property in an ongoing competitive real estate market. “Homeowners with an eye toward high quality and value in the Waynesboro/Augusta County area will continue to call on Westhills Builders for home renovations,” Kerby said.