Remodeling Remains Rosy

For remodelers, the housing slowdown has been a plus. That’s because people who aren’t buying new homes are more likely to fix up the ones they already own. And that seems particularly true in the Jacksonville area.

The Northeast Florida Remodelers Council (NEFRC) soared from 33 to 106 members last year, making it the fastest-growing remodelers council in the nation. NEFRC is affiliated with the Northeast Florida Builders Association (NEFBA).

Nationally, the Harvard University Joint Center for Housing Studies found that people spent $291 billion on remodeling last year, up $6 billion from 2006. Projected spending over the next eight years should exceed $450 billion, according to the study.

By 2015, remodeling is expected to outpace new construction, says Larry Murr, owner of Lawrence Murr Remodeling and 2008 NEFRC chairman. People are demanding a lifestyle change, and they want their homes to reflect this.

According to the 2005 American Housing Survey by the U.S. Census Bureau, the median age of existing housing stock is 32 years, with one-third of all homes built in 1960 or earlier. And as time passes, the need for updates and improvements is heightened.

Renovating kitchens and bathrooms remain atop the list of most popular remodeling projects, according to experts, but requests are also growing for outdoor kitchens, home theaters and additional storage spaces.

"One of the main things that I’m hearing from my clients is they want their homes to be very liveable," notes Katrina Hosea, owner of BeeTree Homes. "They’re doing things like replacing traditional living and dining areas with less formal gathering spaces to encourage entertaining and socializing."

In fact, Northeast Florida homeowners are investing more in their homes than ever—particularly in neighborhoods where home prices are holding their value in a difficult market.

"We’ve seen more people choose to stay in areas such as San Marco, St. Nicholas, Riverside or Ponte Vedra Beach and make the homes exactly what they want," says Frank Rodgers, president of Finial Builders and NEFRC board member."There’s a desire to be near the downtown areas, and one way to do that is to invest in historic and infill areas of the city."

Just exactly what homeowners want can run the gamut, but functionality, comfort and state-of-the-art technology are aspects that most remodeling jobs seem to have in common.

Area remodelers are designing fireplaces and family rooms around flat-screen televisions. They’re flip-flopping rooms and knocking down walls to take advantage of views. They’re adding pool cabanas and guest suites, expanding screened porches and decks, redesigning kitchens around new appliances and adding garages for third cars or workspaces.

"Our clients want space and convenience, and designs are reflecting this," says Kendale Design/Build partner Dale Crisp. "They want to remake their home so that they can get through the next three, five or ten years completely comfortably."

Sport Nobles, owner of Sport Nobles Construction, has noticed a difference in finishes and fixtures. His clients are requesting more natural materials used in interesting combinations.

"Unquestionably, people are leaning toward quality and interesting finishes these days," adds Nobles. "We’re mixing various cabinetry and countertops in kitchens, using a variety of flooring and offering more options than ever for fixtures and hardware."

Aging-in-place remodeling projects are also on the rise. More than 80 percent of Americans aged 55 or older own their own homes, the highest ownership rate of any age group. And younger homeowners are also making aging-in-place modifications with elderly parents in mind.

"It makes sense when anyone is remodeling to design for a universal user, because you never know when a homeowner or a guest is going to need a wider door or a shower to accommodate a wheelchair", says Murr. "We’re finding that people of all ages are planning ahead."

Hosea has recently designed several in-law suites for parents of clients—complete with separate entrances, kitchens and bathrooms.

"The designs often look like a part of the main house, but function as a separate living space," she adds. "People want their parents, even if they live with them, to still feel like they have autonomy, with the ability to cook, do their own laundry and come and go as they please."

Green building, which is associated mostly with new construction, is also a factor in remodeling. The National Association of Homebuilders (NAHB) just announced that it is beginning a Certified Green Professional (CGP) designation program for builders and remodelers—a sure sign that environmentally friendly building is permeating the remodeling market.

"Green has become a real buzzword in the industry," agrees Murr. "Energy is not a cheap item, and homeowners who are offered environmentally friendly or energy-efficient options are finding that it makes sense to use these choices."

In fact, nearly 40 percent of recently completed remodeling or renovation work incorporated green products or materials, a McGraw-Hill Construction research study found. And many remodelers have seen clients reap long-term benefits from small changes, such as saving $150 a month on energy bills by revamping heating and cooling systems or installing energy-efficient windows and doors.

In fact, if a green remodeling design is properly conceived and implemented from the beginning, experts say, the additional upfront cost for the changes is usually recouped over time—sometimes a relatively short time.

In addition, remodeling adds value to your home. According to Remodeling magazine’s most recent annual Cost vs. Value Report, most renovation projects can recoup 70 percent or more of the initial investment after just four years.

As usual, mid-range kitchen and bathroom re-dos are near the top with returns of 82 and 80 percent, respectively. But the best remodeling investment? Replacing siding with a fiber-cement option, which can offer a return of 88 percent.

But remodeling isn’t just about investment value, according to Crisp.

"We always tell our clients that they need to have fun with their projects," he says. "Everyone is concerned with getting the end product as quickly as possible, so you might as well laugh through the process. It certainly makes it more worthwhile along the way."