Are home renovation costs truly starting to decline?
According to a study done by Remodeling.hw.net, home renovation costs are currently on the decline.
This is good news for homeowners who have been wanting to renovate their homes but were put off by the costs. Let’s take a look at what is driving this decline in costs and what types of renovations are being affected the most.
One of the main reasons cited for the decline in home renovation costs is the decrease in labor costs.
With more people out of work, there is more competition for jobs, which has driven down wages. This is good news for homeowners who are looking to do large-scale renovations that require a lot of labor hours such as adding an addition or gutting a kitchen.
Another reason for the decline in home renovation costs is the decrease in material costs. With the economy struggling, many manufacturers are offering discounts on construction materials in order to move inventory.
This is especially true for high-end materials such as granite countertops and hardwood floors. So if you’ve been wanting to upgrade your home with luxury finishes, now is a great time to do it!
Speaking of granite countertops, not only are they eye-grabbing & beautiful, but they provide numerous other benefits for your kitchen.
For one, keeping granite clean is effortless, as it’s naturally resistant to bacteria and dirt build-ups. To take things a step further, you could get the granite sealed to make it completely non-porous.
That means nothing will be able to dirty your countertops – and cleaning them will be as simple as using a soft cloth and some cleaning solution.
Granite is also exceptionally durable, so you won’t have to worry about unsightly chips, cracks, and scratches showing up on your countertops. Sealing the granite will further reinforce it, making it resistant to heavy impacts.
The material is also heat resistant, so if you place a white-hot pan on it, the granite won’t burn or warp.
Adding luxury finishes to your home is not only visually pleasing, but it will increase your property value.
That’s especially true for your kitchen, as it’s one of the major selling points of any home. Bathrooms and basements are also important, so you’ll want to add luxury materials to those rooms while the prices are low.
Renovation Spending on the Rise
Despite national inflation and a volatile market, renovation spending has also been on the rise. Over the last 12 months, Canadians that underwent indoor renovations spent an average of $13,000 – which is up from $8,000 in 2021.
It’s also predicted that homeowners will double their total spending on renovations in 2023, reinforcing that it’s a great time to renovate.
Material and labor costs are low, and Canadians are eager to improve their homes, which is a match made in heaven.
If you’ve been planning a large-scale renovation for your home, doing it within the next 12 months will allow you to capitalize on these plummeting prices.
When polled, 80% of would-be renovators reported that they already have the cash on hand for their projects. That’s a clear sign that Canadians are serious about investing in their homes, both for the added property value and for their own benefit.
For instance, 76% of respondents said they have no intention of moving for at least the next year within, so many Canadians are planning on staying put and improving their current homes.
The pandemic seems to have had an effect on homeowners’ spending habits, with more money going toward home renovations instead of travel and entertainment. Despite COVID-19 restrictions easing off, homeowners have yet to return to their pre-pandemic way of life.
That means they’d prefer to stay home and add a wine cellar to their basement instead of traveling the world or going to concerts.
What types of renovations are Canadians getting done?
For the second year in a row, the most popular type of renovation was an outdoor cabana with a complete chef’s kitchen. It’s a clear sign that homeowners are eager to recreate the resort experience with renovations instead of traveling to faraway places.
Exterior Renovations & ROI
Exterior renovations have also been on the rise, and according to the 25th Annual Cost vs. Value Report from Zonda, renovations to the exterior of the home yield the largest ROI.
What types of exterior renovations are the most popular & profitable?
Here are the outdoor home tweaks that topped the list:
- Replacing the garage door
- Manufactured stone veneer siding
- Fiber cement siding
- Vinyl replacement windows
- Wood replacement windows
The exception to the rule was number 3 on the list, which was a minor kitchen remodel (it was discovered that simple kitchen touch-ups provided a significant ROI for homeowners).
Renovation Ideas to Capitalize on Low Prices
Since you know that costs are going down, now is the time to make any changes to your home that you’ve been dreaming about.
Do you dream of gutting and redesigning your kitchen with luxury finishes and top-tier appliances?
That dream may finally now be possible, so don’t hesitate to get in touch with us for a quote.
If you want to improve your home but aren’t sure what changes to make, here are some renovation ideas to get your creative juices flowing.
Reimagine Your Basement
Your basement is a blank canvas that you can transform into literally anything. Want to build a home movie theater? No problem. Would it be great to have a dedicated playroom for your kids? Why not use your basement?
Guest room suites, wine cellars, and bars are popular basement renovation options.
If your basement isn’t finished, you’ll benefit from at least finishing it with drywall, heating, and lighting fixtures. If you have the budget, you can get creative and have fun with it.
If you go the guest room route, our team at RenosGroup has the expertise and the equipment to add a fully functioning bathroom to your basement.
With the declining costs of labor and materials, you can finally build the basement of your dreams.
Are your parents or in-laws moving in with you? If so, then a home addition is a great way to accommodate them and preserve your existing space.
If your family isn’t getting bigger, home additions can still enhance your home.
For instance, if you need a home office, an addition is a fantastic choice. You’ll be able to build a designated space for getting work done from the ground up, which will help you rid the area of any and all distractions.
Other ideas include expanding the kitchen for more cooking space or adding another garage for more vehicle storage.
Reinvigorate Your Kitchen
Is it a total chore to cook meals at home? Then a makeover is what you need to add some life and joy to your cooking space.
Since labor and materials aren’t too expensive, you can opt for granite countertops, mahogany cabinets, an island, and open shelving.
These touches will transform your kitchen from a dull prison into a cheery cooking paradise.
You can also redesign your kitchen so that you have everything you need to cook a meal right in front of you (i.e., building shelves and adding shelving, so all your utensils, appliances, pots, and pans are always within reach.
Then there’s the lighting, which plays a significant role in the aesthetic of your kitchen. You can get creative with ornamental pendants, lanterns, LEDs, and more.
Finally, many contractors are also offering discounts on their services in order to stay busy during these slow times. So if you’ve been considering any type of home renovation, now is a great time to start getting quotes and shopping around for the best deals.
If you’ve been wanting to renovate your home but were afraid of the cost, now is a great time to take advantage of the current market conditions. With labor and material costs on the decline, you can get more bang for your buck when it comes to home renovations. So start planning your project today and enjoy your newly renovated home before everyone else catches on and prices start going back up! Don’t wait, contact us today (613)727-9427