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Home Remodeling Projects That Pay Back The Most In Happiness
A joint study conducted by the National Association of Realtors (NAR) and the National Association of the Remodeling Industry (NARI) explores the motivations behind home remodeling projects, their outcomes, and the resulting increase in homeowner satisfaction. The report, titled the "2022 Remodeling Impact Report," highlights that homeowners embarked on a wide array of renovation and remodeling projects over the past year, primarily seeking enhanced functionality and livability in their homes.
According to the study, U.S. households collectively spent $420 billion on home remodeling ventures in 2020. The pandemic significantly influenced this trend, with 90% of NARI members reporting a surge in demand for remodeling work. Furthermore, three out of five NARI members indicated that the scope of projects expanded, either by undertaking larger renovations or remodeling multiple rooms.
The primary drivers for remodeling varied among homeowners. Approximately 35% cited improved functionality and livability as the most crucial outcome. Additionally, 22% of respondents valued durable and long-lasting results, materials, and appliances, while 14% prioritized beauty and aesthetics. The "sheltering at home" period during the pandemic is identified as a key factor that spurred an unprecedented wave of home and backyard projects, prompting homeowners to reconfigure their living spaces to maximize utility.
Regarding project execution, 35% of homeowners hired professionals for the entirety of their projects, while 28% engaged professionals for labor but sourced materials independently. A notable 22% of homeowners completed their projects entirely themselves.
The study introduces a "Joy Score," a metric ranging from 1 to 10, to quantify homeowners' satisfaction and enjoyment after completing a renovation. Projects achieving a perfect Joy Score of 10 included painting a home's entire interior, painting a single room, adding a home office, refinishing hardwood floors, closet renovations, and insulation upgrades. For instance, hardwood floor refinishing garnered a perfect 10, with 64% of respondents reporting increased enjoyment at home and a similar percentage expressing a major sense of accomplishment. The addition of a home office also received a perfect score, with 91% of consumers indicating a greater desire to be home and 73% experiencing increased enjoyment due to this upgrade, reflecting the rise of remote work.
The NAR/NARI report also provides cost recovery estimates for various remodeling projects. These estimates consider factors such as design, material quality, location, home age and condition, and homeowner preferences. A significant benefit of home renovations is the potential increase in home value, which can be particularly advantageous for those considering selling or converting their property into a rental. For interior projects, hardwood floor refinishing showed the highest cost recovery at 147%, followed by new wood flooring at 118%, and insulation upgrades at 100%. Among exterior projects, new roofing and new garage doors both achieved a 100% cost recovery rate.
Kitchen remodels were also highly popular, achieving a 9.8 Joy Score. The leading reason for kitchen overhauls (32%) was the desire to upgrade worn-out surfaces, finishes, or materials, while 20% aimed to add features and improve livability. The average cost for a kitchen remodel was estimated at $45,000, with realtors estimating a $30,000 recovery value, resulting in a 67% recovery rate.
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