Wealth Effect, Homeowners Excited About Remodeling Again

SUNNYVALE, Calif., Oct. 8, 2013 /PRNewswire/ -- Planese, Inc., announced today that homeowners across the country are now willing to spend 30 percent of the value of their home when they remodel; remodeling expense as a percentage of home value has been trending upward since 2007. Consumers also plan to use materials that are more expensive and spend an average of $102,000 to improve their homes.

These findings are part of the Fall 2013 Remodeling Sentiment Report, a forward-looking report based on data from the Planese and http://www.remodelormove.com survey of homeowners nationwide that analyzes and documents trends in the home improvement industry. Planese compared the responses of today's homeowners throughout the nation against the findings reported both during the recession in 2010 and at the height of the remodeling boom in 2007.

"The wealth effect is taking hold; consumers are spending again, which bodes well for the entire home improvement industry," said Dan Fritschen, CEO and co-founder of Planese, Inc. Since 2005, Fritschen has researched and published remodeling industry data about U.S. homeowners, their remodeling plans, and their intentions. "More people are feeling secure enough during this economic environment that they are remodeling. It's no longer the most affluent; we are at the beginning of a multi-year trend."

More homeowners (74 percent) plan to hire a general contractor, which is up significantly from the 64 percent reported in 2010 and 2007. The percentage of people who plan to engage an architect (56 percent) has bounced back from the low of 47 percent in 2010 during the recession. As the scope of projects increases, so does the need for an architect.

The projects planned are larger; the average number of rooms to remodel is four. Homeowners are more likely to remodel a kitchen (55 percent), which tends to be expensive and often is a discretionary expenditure, than a bathroom (48 percent), which is often viewed as a necessity.

The survey also found that homeowners are less likely to do any of the work themselves. Today, 43 percent plans to do none of the remodeling work themselves as compared to 36 percent in both 2010 and 2007. In addition, more homeowners say they will use expensive materials when they remodel (17 percent) today, as compared to 9 percent in 2010 and 10 percent in 2007.

Planese Survey Results: Cost to remodel /home value 2007 25% 2010 28% 2013 30%

Plan to perform none of the work 2007 36% 2010 36% 2013 43%

Plan to use a general contractor 2007 64% 2010 64% 2013 74%

Plan to hire an architect 2007 54% 2010 47% 2013 56%

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Wealth Effect, Homeowners Excited About Remodeling Again