Uncertainty abounds in today’s economy; we read of high unemployment rates, tightening in the lending industry, and falling housing prices. With the economy in the shape that it is, many home owners considering a remodeling project are questioning the timing. The answer is rooted in the factors that drive the project and the benefits to be realized from it.

The first thing to consider about what we hear and read is that the news is generally reported from a national perspective, so it is easy to disregard the more accurate and more relevant regional statistics. In fact, these conditions in the Houston market area are considerably better than the national picture. For example, Houston’s unemployment rate is 5.4 percent while California’s is over 10 percent. Secondly, and more importantly, economic conditions vary from family to family. Since it is impossible to weigh the impact of these conditions on each reader as a “con” in a “pro vs. con” analysis, this article will illuminate some of the benefits realized in a remodeling project so the reader can weigh them against his particular situation.

Despite these current conditions, various reasons for undertaking a remodeling project prevail:

• The tightening of the lending market and the excess housing inventory has created a buyers market, which makes it difficult or undesirable to sell at this time – remodeling can be the answer to add the features in your home that you seek in an another.
• Occasionally the bathroom or kitchen is damaged by water resulting from a leak or a storm. This can be seen as an opportunity to remodel a room using an insurance claim as a subsidy.
• A change in family size - a newborn or an adoption creates a need for a larger or another bathroom or bedroom.  Also, empty nesters tend to want to remodel the home after the kids leave to better fit their needs.
• Studies have shown that baby boomers are increasingly choosing to retire in their current home rather than move to another. “Aging-in-place”, the term used for this trend, involves making the home accommodating to the needs of the elderly.
• About 52% of the home’s energy needs are due to appliances and lighting. Increased awareness in global warming, carbon footprints and green environments has caused some to make their home more energy efficient in the course of a remodeling project. Increasingly, home owners are remodeling to improve the efficiencies to lower the costs of owning the home.

Now for some of the advantages that you will realize from remodeling projects:

• Remodeling your kitchen or bathroom will increase your home’s value, and you will have time to enjoy your new room while waiting for the housing market to turn around – after all, enjoying your home is why you bought it in the first place.
• Remodeling kitchen and baths provides a return on investment and increases selling profits. Studies have shown that upwards of 78% to 105% of kitchen and bath remodeling costs are recovered in the value of the home.
• While it is a buyers market for home sales it is also a buyers market for remodeling projects as well. Because of the current slowdown, material and labor prices have come down and lead times for cabinets and other materials have decreased. Contractors are more likely to start projects earlier and are less likely to hop around on multiple jobs while they finish yours. Designers are able to spend more time with clients and customer service is likely to be better during this slower economy.
• The current economy has had a Darwinian effect on the remodeling industry as a result some of the less scrupulous contractors are now out of the business
• In addition to improved energy efficiencies,  you could acquire  an enchanting spa with luxury components like aroma therapy, etc., a safer bath or a refreshingly modern-looking and more functional kitchen with increased storage space

Should you decide to move forward with you remodeling project, one caveat is that in today’s slow home building market, some home builders are taking on remodeling jobs. Remodeling an existing home is not the same as building a new home. When building a new home, the builder does not have to consider demolition, non-true walls and structures and construction while the home owner lives in the house. However this is the normal environment for the remodeler, who has developed his practice over many years to accommodate these conditions.

This is a good time to make needed improvements on your home. Your project is likely to be more cost competitive and completed on time. You will recapture the cost of the project with the increased value in your home while you and your family enjoy the new look. 

Designer Bath and Kitchen (www.designerbath-kitchen.com) is a Houston based remodeler of kitchen and bathrooms.