Sales isn't the only housing sector to benefit from the long run of low mortgage interest rates; so is remodeling.
Harvard's Joint Center for Housing Studies pegs spending on renovations and repair at $130.4 billion last year. But the National Association Home Builders says home owners paid roughly $182 billion in 2003 to improve their homes and keep them in good working order.
"It was a banner year for the remodeling industry," says Springfield, Ill., remodeler Doug Sutton, who is chairman of NAHB's Remodelers Council.
Noting that the sector posted higher year-end numbers in 2003 than in previous years, both the NAHB and the Joint Center also expect remodeling to remain strong this year.
The most common projects remain kitchen and bathroom remodeling, closely followed by room additions, according to NAHB's research director, Gopal Ahluwalia.
But Denver architect Doug Walter, a design-only remodeling specialist, says the five hottest trends in the business these days are daylighting, detached garages, his-and-her spaces, "visitability" and a movement toward higher quality materials:
Daylighting – Almost without exception, the home owners Walter interviews say they want their homes "lighter and brighter."
"They are tired of dark rooms, small windows and no views," the architect reports.
Walter, who this year celebrates 25 years of doing almost exclusively residential remodeling -- "with one new home a year thrown in for relaxation" -- says he "answers the call" with larger windows, more windows, stacked windows, feature windows, skylights, sun tunnels, interior windows, mirrors and open floor plans that share light from other rooms.
"Bringing in daylight from more than one direction is vital to visual comfort and safety," he says.
Walter says it is easier to let the light shine in houses built since the 1960s. "We can always do better," even on the most recent production houses, he boasts.
Detached Garages – When automobiles first became commonplace, they were relegated to the carriage house or a purpose-built structure away from the main residence because they were smelly and rather dangerous. It wasn't until the 1950s that it became necessary because of land constraints to attach the garage to the house.
Now, Walter says detached garages are making a comeback. "In the past two years, we've been amazed at the number of clients who say ‘yes' to our suggestions for detached carriage house garages, both for remodeling and new homes," he reports.
Pulling the garage away from the main residence allows for four-sided architecture. "The house is no longer dominated by a two or three-car garage," the architect points out.
It also makes it easier to expand the main house, adds architectural interest to the lot and creates a great opportunity for protected outdoor uses in the space between the garage and house.
His/Her Space – The ultimate luxury is space; there never seems to be enough of it, which is what keeps the remodeling business healthy.
But even when space is limited, according to Walter, there is a strong proclivity for "defined space" for the home's occupants. When given the choice, he says "most of our clients will opt for small walk-in closets of their own rather than a shared walk-in. And vanity areas that are across the room from each other are much preferred to the ubiquitous side-by-side arrangement."
"Visitability" – This is Walter's term for remodeling a house to make it more accessible for older occupants. The new word is necessary, he says, because "baby boomers are in serious denial. They don't acknowledge they are getting older or less able."
Yes, people today are healthier and more active than previous generations. But a 60-year-old is not 30, says the architect. He may be 50, but not 30.
Nevertheless, home owners don't like to talk about their own decreasing mobility, strength, frailties or perception. But they will discuss their parents and friends who come to visit.
Thus, the new term, "visitability."
"It is much easier to see and design for the frailties of our parents than it is to admit we may be in the same shoes 10, 20 or 30 years down the road," the remodeling specialist says.
Making It Real – Home owners are choosing higher quality materials for every room in the house. Tile or granite countertops instead of plastic laminate, porcelain cast iron tubs over fiberglass, even lath and plaster over drywall.
"Across the board, we are finding clients making the right choice for their homes, choosing quality over quantity and selecting the better materials that in the end have lasting value and lower life-cycle cost," Walter reports.
A word of caution before closing: If all this seems expensive, it is. The average cost of a Walter-designed remodel is a whopping $250,000. But, as the architect points out, many trends start in the luxury market and eventually work their way down to the mainstream.
Published: April 7, 2004
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When Lew Sichelman first started writing about housing in 1969, he was the youngest real estate writer in the country. Now, 37 years later, he's one of the oldest -- and most decorated.
He has been rated the top housing columnist in the country by the National Association of Realtors as well as by his peers in the National Association of Real Estate Editors. Indeed, NAREE has recognized his work on numerous occasions. One year - due to his advancing age, he can't recall which one - he earned top honors in the annual NAREE Journalism Contest in three out of the four major writing categories. It was the first time one writer has won so many NAREE awards in a single year.
Known for his ability to make even the most difficult topics understandable, Sichelman also has been honored by the National Association of Home Builders and the Mortgage Bankers Association.
He began providing in-depth coverage of and consumer-oriented information about housing and housing finance at the Washington Daily News, where he was real estate editor. He
held that same position for nine more years at the Washington Star, which purchased the News in 1972.
The Star, a so-called "writer's newspaper" which also had the misfortune of being an evening paper, was put out of its misery in 1981, and Sichelman, who had begun self-syndicating his column in 1978, decided to become a full-time columnist. Today, his column, "The Housing Scene," is distributed by United Media to newspapers throughout the country.
He also is on the staff of National Mortgage News, an independent newspaper which is considered the bible of the mortgage business. And he writes for numerous other publications, including MarketWatch.com, where he answers readers questions once a week, Sports Illustrated (don't ask), RealtyTimes.com, BigBuilder and others.
Sichelman is married, the father of five and grandfather of eleven.
When