Rather than sell, homeowners are remodeling more and more.
by Jerry Davich
Custom remodeling of upscale homes is back in vogue, whether it's a $50,000 kitchen upgrade or a $200,000 outdoor overhaul.
“Things are looking up again,” says Jim Pressel, owner of Pressel Enterprises Inc. in LaPorte, a custom builder and remodeler in Northwest Indiana.
“The rising trend we're seeing is mainly in kitchens and master bathrooms, because that's the focal point in most homes these days,” says Pressel, past president of the Builder's Association of LaPorte County who now serves as treasurer for the Indiana Builders Association.
High-end remodeling didn't take quite the hit that other housing-related markets had to absorb since the economic crash in 2008. Most owners of upscale homes, which can range from $1 million to $3 million, continued to customize their houses even if it meant downgrading from, say, a new copper sink to a stainless steel one.
“From my experience, the poor economy has been good for remodeling because people are remodeling instead of building new,” says Ken Blaney, owner of One Guy with Tools in Valparaiso, which specializes in remodeled kitchens, bathrooms, basements, finished garages and mudrooms.
Data released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau confirm this trend in the Midwest, as new-home sales fell by 17 percent in the past two years. (The South, West and Northeast showed marked improvement with respective increases of 10 percent, 11 percent and 73 percent.)
On the flip side, it's common for upmarket homeowners to make remodeling renovations they didn't initially plan. In many ways, it's human nature, remodelers say.
“For example, let's say you go to Walmart for a $20 fishing pole and walk out with the $25 pole. People often do the same thing with remodeling,” says Pressel, who had just returned from the International Builders' Show in Las Vegas.
Northwest Indiana builders are reporting a similar resurgence in certain high-end remodeling features, such as expanded master bathrooms with walk-in closets, kitchen countertops and cabinets, and patio rooms with hot tubs or rewired fixtures. Energy Star-rated appliances and windows are also being showcased.
“Open concept is still big,” Blaney says. As well as wide-plank distressed wood floors, neutral colors rather than bright, door upgrades, and fireplace makeovers, from old brick to stone or pressed concrete and upgrading tile.
Inside the master baths, the most common upgrades involve custom tile showers, heated tile floors, heated toilet seats and natural sunlight openings. Basement remodeling includes built-in cabinetry, accented walls and high-end bathrooms.
“People also are adding egress windows so they can add bedrooms,” Blaney says.
According to the National Association of Home Builders, houses with at least three full bathrooms have spiked from 23 percent in 2010 to 35 percent in 2013. And new homes with at least four bedrooms have also seen a spike, from 34 percent in 2009 to 48 percent in 2013.
Also, the average size of new homes keeps getting larger, from 2,362 square feet in 2009 to 2,679 square feet in 2013, according to U.S. Census Bureau data. Bigger, more expansive homes bring higher sales prices on average, from $248,000 in 2009 to $318,000 in 2013. This, too, affects remodeling options, experts say.
“Most homeowners set a budget for their remodeling needs, depending on the size of their home and how big they want to dream,” Pressel says.
According to the National Association of Home Builders/First American Leading Markets Index, only 59 of the roughly 350 metro areas across the country returned to or exceeded their last normal levels of economic and housing activity. Northwest Indiana is not one of them, another factor in making remodeling decisions.
“I think more people in the high-end homes are remodeling because their homes are harder to sell,” says Brenda Spitz, a broker associate with McColly Real Estate in Schererville. “These people decided to stay put and renovate.”
Spitz, who is also a home stylist and artist, worked for 12 years at Walter E. Smithe Furniture as a manager and designer. There, she learned how to assist clients with choosing which colors schemes work best with which amenities.
“The hottest trend right now is a rustic and modern look with grays and creams,” she says. “Wood tones are light or gray in tone, and yellow is a trendy accent color, which is a nice touch of happy.”
In the kitchen, her clients are asking for white cabinets, glass tile backsplashes and dark wood hand-hewn floors. In the master bathroom, walk-in showers with body spas are all the rage, Spitz says.
Outdoor kitchens also are in demand. “Stainless steel still seems to be the hot finish on appliances, along with a stainless called slate, which is basically a bit darker in color and does not show fingerprints.”
“There is talk that brass could be the next big thing, but that trend is not here yet,” she adds.
Pressel, who's been in business for more than 20 years, said remodeling trends are cyclical in nature but more homeowners are now choosing to go online to pick exactly what they want. Similar to a woman picking a new hairstyle in a magazine and bringing it to her stylist, homeowners are surfing online photo galleries to choose their home's next look.
The most popular sites are Pinterest, a visual discovery tool loaded with photos and images, and Houzz.com, a leading platform for home remodeling.
“Houzz provides people with everything they need to improve their homes from start to finish–online or from a mobile device,” the site states. “From decorating a room to building a custom home, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals across the country and around the world.”
If you're thinking of remodeling, experts say the first question you should ask yourself is a simple but crucial one: Are you remodeling to sell your home or to stay in your home for another 20 years?
