The latest news and information from RemodelOrMove.com is good news for the professional remodeling industry. According to the organization’s Spring 2013 U.S. Remodeling Sentiment Report there is strong growth in higher-end projects and a decrease in the do-it-yourself (DIY) remodeling market that grew during the recession.
The most popular remodeling projects currently in demand are kitchens and bathrooms. It has been estimated that 73 percent of homeowners say they plan to hire a general contractor for their remodeling projects, and a full 80 percent of homeowners say they will do little to none of the work themselves.
Whether or not we continue to debate if we are still in a recession, it doesn’t seem to be affecting homeowners who want and plan to complete remodeling projects. According to the latest survey results, 58 percent of homeowners report that the economy is having minimal effect on their remodeling plans.
RemodelOrMove.com says that the “wealth effect” is helping fuel the recovery in home remodeling.
What exactly is the wealth effect?
The wealth effect is an economic term that refers to the change in value of assets, in this case - home values rising – that results in owners feeling ‘richer’ even if no additional cash is realized. It often encourages spending and dampens savings.
With all this new information and data, what does it mean for the future of remodeling?
This current information seems promising, but do-it-yourself (DIY) home improvements have been, and will likely continue to be, a feature of the U.S. home ownership landscape.
According to ForResidentialPros.com it is likely that as the economic recovery expands, more homeowners interested in DIY who have delayed their projects will again begin planning remodels, and the sentiment report will show a ratio of DIY and Hire-it-done more in line with pre-recession numbers. Meanwhile, the resurgence of professional remodeling projects is helping the economy and that is good news for the industry as a whole.