In the past decade, home renovations have become increasingly popular. Over the next decade, will homeowners still be interested in doing house renovations? Or will trends change and home renovation projects decline?
As we enter the next year, home renovations appear to be continuing to trend upward. However, there will also be a decline in demand for certain types of home improvements.
For example, while most homeowners will likely continue to invest in new appliances, fewer will spend thousands on remodeling kitchens.
This article will share with you some of the major trends in how homeowners have renovated their homes in 2022.
Home renovations are a popular trend that is expected to continue throughout the early 2020s, according to a report by Houzz. The home renovation industry has been growing steadily since 2010, with billions spent on home improvements last year.
In fact, home improvements in 2020 went up by 15% compared to 2019, according to Houzz.
This growth is largely due to rising interest rates, low mortgage rates, and – you guessed it – the global pandemic.
However, due to economic circumstances in 2022, the cost of home renovations has risen sharply, after the first quarter of 2022, causing the number of projects to drop during the course of the year. Eye on Housing reported that home renovations have fallen by 10 points in Q2 2022 compared to Q2 2021.
According to the U.S. Census Bureau, 142,153,010 new housing units were built between 2020 and 2021. This is a huge increase from year-to-year in the previous decade.
As a result, the demand for homes is increasing. Greater demand for homes is driving higher prices. And as housing market prices rise, home renovations are becoming increasingly popular.
Some homeowners are choosing to renovate their current home instead of buying a new one. Others choose to make strategic renovations in order to increase the value of their home before it goes on the market.
While housing markets are rising to near record levels, many financial experts are warning of an inevitable recession that will likely reduce the value of many homes.
This impending fall in property prices could bring a halt to many home renovation projects as money will be tight.
After the rise of remote work during the COVID-19 pandemic, many people are still choosing to work from home. This has led to greater demand for home offices.
There is no one "right" size or location for a home office; rather, these workplaces can be established virtually anywhere.
However, the majority of home offices are built into spare bedrooms. This typically requires some renovation work like changing the furniture, the lighting, and maybe adding a few layers of paint.
The addition of home offices is likely going to remain a top trend in home renovation for the foreseeable future.
2022 will be remembered as a year of high inflation, slowed economic growth, rocketing energy prices, and a high cost of living.
These factors influence people's wallets and their ability to pay for home renovations. However, it also changes the type of renovations that people want.
When energy prices increase, homeowners look for ways to reduce their energy needs to save money. This leads many people to consider investing in things like insulation, heat pumps, and solar panels, as they all reduce energy usage.
On top of this, window upgrades, new doors, and roof replacements can also make a mighty difference in your home's energy consumption, making these renovations more popular for the year.
Here is a look at some major trends in home renovations in 2022.
Home offices have been one of the top trends in home renovations for 2022 as a continuation of COVID-19 pandemic-era regulations that required people to work from home.
This means things like more lighting, changes in wallpaper, new furniture, and maybe some new technical installations like CCTV or a security system, depending on the nature of their job.
Insulating your home is another big trend in home renovations for 2022 because it helps keep your house warm during the winter months.
The best way to insulate your home is with wall, roof, or flooring insulation. This is done by installing foam boards, or other insulators between the flooring, walls, and ceiling.
Solar panels are becoming increasingly popular as an alternative source of power. They provide electricity to your home while reducing your reliance on traditional sources such as gas and coal.
Heat pumps are an additional choice that can be made to reduce monthly heating costs. They consume less energy than traditional heaters, which means you can use them while still maintaining the same level of warmth.
Heat pumps can also double up as a cooling system during the summer by reversing the flow of air through the pumps. As a result, heat pumps can also cut down on maintenance costs as you wont need an A/C system and a central heating system.
Given how much time people spend in the kitchen, kitchen renovations remain a popular trend. Even relatively small changes can bring a fresh look and feel to this essential part of a home.
Kitchen remodels are often seen as a luxury item, but they can actually be very affordable. If you're looking to update your kitchen without spending too much money, then you should think about replacing your old cabinets with modern ones, or to really save on your kitchen remodel, you can paint your old cabinets, and no one will know.
Modern kitchens tend to feature white cabinets and appliances. Red, yellow, green, and blue are all great examples of bright colors that can be used to create a dynamic color scheme.
Adding vibrant colors to your kitchen will bring it to life and help to brighten up the space. This improves the atmosphere in your home and is attractive to buyers if you are looking to sell after renovating.
Sustainable designs are becoming more popular in the design world. People are beginning to understand that we must all do something to safeguard our world. As a result, many designers are incorporating sustainable features into their designs.
For instance, green roofs are showing up on more and more buildings around the world. Green roofs are designed to absorb rainwater runoff from the building and recycle it back into the soil.
Built-in storage can give your home a practical and stylish edge. You can add hidden or built-in storage compartments throughout your house. These cabinets are cool to use and look at, but they also have practical advantages as you get a lot more storage space.
Built-in storage solutions also allow you to declutter your entire home. It's easy to see why this is a great idea when you consider how much stuff accumulates over time.
Decluttering areas of your home can offer you more space as well as enhance the atmosphere. You won't have to look at stuff you're not using, which can help improve your mood. Plus, you can channel the likes of Marie Kondo.
A home spa typically comes as a bathroom renovation to include things like a fancy bathtub and shower. However, there are other ways to incorporate a spa into your home.
For instance, you could create a whole room dedicated to relaxation. This would involve adding lots of candles, soft music, and relaxing scents accompanying stylish new appliances and features that can pamper you at home.
You could have lighting installed to warm the room, and have built in candle holders surrounding a luxurious bath. You could even top it off with a tv in the room and speakers installed for surround sound effect.
Depending on the space you have and your budget, you could also invest in massage chairs and other furniture to create a tranquil and relaxing space.
One of the priciest things in a house is its appliances. If you want to make the most of your kitchen island, then you should consider installing appliances underneath it.
This allows you to store large appliances, like refrigerators and dishwashers, under the island instead of having them take up precious countertop space.
The adoption of open floor patterns in residential construction is a worldwide trend. They provide a spacious feel to the home while still allowing for privacy.
If you're thinking about updating your home with an open floor plan, then you should consider including some natural light. Natural lighting helps to reduce energy costs and provides a brighter feeling to the home.
Smart homes are becoming more common in modern homes. The technology behind these smart homes has improved dramatically over the years.
These days, you can find smart homes that monitor everything from temperature to air quality to water usage. Some even come equipped with cameras and security systems.
Here are some things you are less likely to see added during home renovations in 2022.
Carpets are a good addition to your home if you like them. However, carpets have now become less popular. Many new homeowners choose to rip up existing carpets when they move in and instead prefer to install their own or leave the hardwood floor in place.
As a result, investing in carpets as a renovation project is only a good idea if you don't plan on selling the property any time soon, as a new carpet could actually reduce the value of your home rather than increase it.
Swimming pools add immense value to homes in very hot climates such as in California or Florida. However, in many places where it's only hot enough for a pool during the summer, swimming pools are a financial drain that homeowners get little use out of.
Not to mention the fact that a swimming pool will cost tens of thousands of dollars to install, increase your home insurance premiums, and cost thousands of dollars a year to run.
As a result, swimming pools are likely to see a decline in many areas during the year, especially among homeowners seeking to gain the attention of potential buyers.
Sunrooms are another type of room that is slowly disappearing from the market. While sunrooms were once considered a great way to bring sunlight into your home, they are now seen as outdated and unnecessary.
Many people now prefer to spend their time outdoors enjoying nature rather than spending time inside a small enclosed space.
On top of this, sunrooms are unnecessarily expensive and typically do not contribute to your home's square footage. As a result, they do not add much value to your property.
Home renovations have been trending upward since 2012, but they will continue to decline in 2022 due to rising construction costs and the fact that many homeowners simply aren't willing to spend more money on their homes.
However, if you plan well and invest wisely, you can still reap the rewards of a beautiful home renovation project without breaking the bank.
Housetable can relieve some of the financial strains for your home renovation project. We analyze your home’s property value before and after the renovations. You can see how much you can borrow, how much to pay monthly, and how that changes depending on which improvements you choose to make, without hurting your credit score.
We also connect you to credible sources of competitive loans and monitor the progress of your renovation. Due to our unique underwriting, which focuses on after renovation value, Housetable can offer a larger loan size, which can help you achieve your desired results.
Request a call with one of our experts to get the process started on your new renovations.