2022 is set to be one of the most exciting years for remodeling! After several years of double-digit growth, the Joint Center for Housing Studies of Harvard University forecasts that spending will begin to slow down towards more sustainable levels.
But don’t worry – this doesn’t mean that remodeling is going out of style. There are still plenty of trends and opportunities to capitalize on in the coming year! Keep reading to learn more about what’s in store for 2022.
According to Schwalb Builders reports and the Leading Indicator of Remodeling Activity, annual spending on home renovations and repairs will reach its peak in 2022.
The Remodeling Futures Program at Harvard University’s Joint Center for Housing Studies (JCHS) developed the LIRA, predicting double-digit increases in yearly homeowner renovation and maintenance expenditures.
For example, in Denver, Colorado, remodeling activity is expected to grow by more than 20 percent in 2022. This is mainly due to the state’s strong economy and population growth. And while most regions are projected to see healthy increases next year, no one market is expected to experience explosive growth.
“Location, location, location” is a well-known real estate adage that we all know as the first principle of real estate.
We can begin to comprehend how to fully grasp Cost vs. Value if we think like real estate professionals.
The city of Denver and the surrounding areas are known for their beautiful scenery and charming towns. There are also many homes such as houses, apartments, ranches to castles.
If you want to sell your house in the next few years, the focus of your remodeling project should be more on the “look” than on the structure itself. But if you plan to settle down for good, that’s a different story.
Cost VS. Value
Zonda has released its 34th annual Cost vs. Value study, revealing that exterior renovation projects maintain a multi-year trend of delivering the highest return on investment (ROI) to homeowners.
Schwalb Builders professionals chose the highlights of the best ROI for homeowners by the project.
Minor Kitchen Remodel
A minor kitchen remodel is the most popular project in America, with a national median cost of $26,214 and a 72.0 percent ROI.
Home for Sale: A minor kitchen will increase the value of your home only when it’s necessary. I mean, if the rest of your home condition is ok, but your kitchen is a sore in the eye, a minor remodel can turn up tough decisions into easy ones.
Home for Life: If you and your spouse decided to plant roots in Denver, that’s wonderful. But instead of thinking about the ROI, you should think about kitchen remodeling with plumbing, drywall removal, and the whole shebang. Make it once and forever.
A deck addition returns an average of 66.0 percent of the project’s cost at resale, making it one of the most popular projects in terms of ROI.
Home for Sale: A well-built and well-maintained deck can be an excellent amenity for potential home buyers. On the other hand, it might be too much to invest when all you want is to sell your home.
Home for Life: In Denver, we experience all seasons. Lucky us, we have long springs and summers. Sitting outside on the grass is nice, but you cannot compare it to sitting on a fancy deck with a built-in outdoor kitchen.
Universal Design Bathroom Remodel
A universal design bathroom, mid-range remodel returns an average of 60.0 percent of the project’s cost at resale, making the bathroom one of the most popular projects in terms of ROI.
Home for Sale: A well-designed bathroom can be a huge selling point for your home. It will increase its value and make it more attractive to potential buyers. A mid-range bathroom remodeling would be more than enough to get to that point.
Home for Life: If you’re remodeling your home with the idea of living in it until you inherit it, a universal design bathroom should be one of your top priorities. We want a High-End bathroom that is easy to use and accessible will make things easier as we age.
Influence of the Cost of Remodeling
The remodeling industry is expected to top $300 billion in 2022, with more homeowners undertaking renovation projects as the economy strengthens. This is mainly due to the state’s strong economy and population growth. And while most regions are projected to see healthy increases next year, no one market is expected to experience explosive growth.
Undoubtedly, remodeling costs have increased between 10%-70% in the last two years since the COVID-19. This sky-rocket bump is related to a shortage in raw materials, machinery parts, and employees.
Is it worthwhile to remodel your home?
The answer to this question largely depends on the market you live in. Suppose you are located in a city experiencing strong population growth like Denver, CO. In that case, remodeling your home will likely result in a higher return on investment than living in a slower-growing city.
In 2020, COVID made people hesitant to have contractors in their homes but eager to improve outside spaces. That’s the reason why outdoor remodeling projects are expected to see healthy growth in 2022.
The ROI on a standard kitchen makeover is greater than that of a high-end renovation. A major kitchen remodel costs $68,490, and homeowners recoup $40,127—value Report from Remodeling magazine, a 58.6 percent return on investment. An upgraded kitchen costs $135,547, and the ROI will be 53.9 percent.
Choosing a faucet that stands out and looks different may provide a personalized touch, add value, and give the impression of attention to detail.
According to the Remodeling magazine survey, a typical bathroom renovation cost is $49,598. The ROI for a midrange makeover is 54%. An upscale remodel will set you back $67,106.
Flip & Sell? Don’t invest more than 20K for your bathroom renovation.
“It’s a new day for tiny showers and tubs with jet streams,” Sean from Schwalb Builder says. “Today, it’s all about luxury designs, such as a larger shower, extra body sprayers, and personalized tile on the floor with inlays for specific details. These high-end features can add value to your home when it comes time to sell.”
A Home Addition
Are you adding the main bedroom to your home? You won’t sleep if you spend $150,000 on something and only earn 50% of it back.
“We just completed an addition for a customer in a two-story traditional house. We added a master bedroom bath, remodeled the basement, as well as brought the laundry room to the main level,” Sean from Schwalb Builders explains. “It returned with a 91 percent ROI, making it more appealing to Baby Boomers who didn’t want to climb stairs anymore.”
“A bonus (additional) room is a great way to add value to your home,” Sean from Schwalb Builder says. “It can be used as a gym, music room, bedroom, office, or den. You can also finish the attic and turn it into a bonus room.”
Pool & Deck
92% of consumers want a pool, but only 76 percent can find the time for its upkeep. A new outdoor space will provide an opportunity that many may not have had before: taking care and loving on their backyard oasis with minimal maintenance hours!
Who can blame you for building a pool & shiny deck? The ROI stands at 43 percent. People don’t see the complex maintenance – they look at how nicely decorated or scenic the outside looks via decking paths leading up close towards where they cool off during summer days.
Remodeling Customers Reviews
“For 13 years, we have been dreaming about our pool surrounded by a wood deck on our weather-free patio. We finally decided to take the Schwalb Builders team and go for it.
Boy, are we happy that we did! Schwalb Builders completed the project on time and within budget. Our decking contractor, Schwalb Builders, was a pleasure to work with.” – Peggy C., Denver, CO.
“I was very impressed with Schwalb’s staff. The crew showed up on time (WOW!) and worked all day diligently. They cleaned up deeply every night before they left. I would recommend Schwalb Builders to anyone considering a bathroom remodel.” – Cheryl H., Aurora, CO
“The entire process was very smooth. After meeting with the designer, we approved the plan and waited for 20 days to install it. After two and a half days, our kitchen turned into a palace. No kidding. Thank you, guys.” – Kari H., Highlands Ranch, CO.
“This was our first home renovation or remodeling, whatever you want to call it, so we were a little apprehensive. But the Schwalb team made the process easy and stress-free. We love our new addition! The first time we saw it, we were amazed at how well it all came together.” – Anne & Millard P., Centennial, CO.
“We bought this house in the 90s. We had to replace our kitchen cabinets and install the plumbing system from scratch. We were very impressed with the work done by Schwalb Builders. The quality of their work is outstanding. Highly Recommended!” – Judy C., Parker, CO.
“My old wood windows at my house were non-functional anymore—every time I had to open it with force. I searched Denver to find a good and reputable construction company and met Schwalb Builders. I’m glad I did! The windows they installed are top quality and look great!” – Lori W., Parker, CO.
“I went with a classic approach to bringing the beach inside a space with light blues and pelican artwork, while my spouse sought for White walls and ceilings with a conventional touch paired with clean, modern furnishings. Sean from Schwalb Builders came over to quote us. He is Amazing! We divided the room, so we were both pleased. Thanks again for everyone’s hard work on our behalf!” – The Work at Home Couple, Castle Rock, CO.
“The basement was a total wreck when we bought the house. We didn’t know where to start. Schwalb Builders walked us through the whole process and made it easy for us. We’re so glad we decided to remodel the basement! It turned out great.” – The Smiths, Lafayette, CO.
“I would like to move in a couple of years, but yet I want to enjoy life, and my kitchen is a big part of it. Schwalb Builders pro showed me many examples to choose from. He was honest and entirely understandable. A month later, the staff with the cabinets came over. They were so precise with measurements, and my husband loved the quality of the cabinets. ” – Maria G., Denver, CO.
“For many years, we want to build a professional kitchen in our backyard. Lucky us, winters are not so horrible in Denver as in Buffalo, NY. I had a vision, and I called about five different construction companies near me, and nothing. Since I found Schwalb Builders on Google, I knew I had found the right company. We started, and we finished our dream kitchen in just about a week.” – The Nelsons, Lakewood, CO.
“I was very pleased with the whole universal bathroom remodeling process. The crew showed up on time and worked all day diligently. They cleaned (better than me) up every night before they left. I would recommend Schwalb Builders to anyone considering a bathroom remodel.” – Mike H., Aurora, CO.
Finish up your renovation project in 2022
Schwalb Builders is Denver’s top choice for quality home remodeling services. We are experienced in various projects ranging from minor repairs to full-scale renovations. We have the knowledge and expertise to handle your project with professionalism and care.
If you’re considering a renovation project, give us a call! One of Schwalb’s team would be happy to discuss your options and provide a free estimate. You won’t regret choosing Schwalb Builders for your home remodeling needs!