Economy grows interest in home remodeling work

At a time when home sales are at multiyear lows and sale prices are likewise in a slump, residential interior designers say more homeowners are considering remodeling as an option to improve the quality and sales appeal of their homes.

"Instead of shedding the house they're in and purchasing a new one, (homeowners) decide to stay and update it because they're staying there longer," said Vickie Stewart, interior designer with Kansas City-based Rosemann & Associates and president of the Missouri West chapter of the American Society of Interior Designers. "That's a pretty typical response in tough economic times."

Homeowners are likely responding to declining housing sales. About 1 million homes were sold in the Midwest in February 2009, down 14 percent from the same month a year earlier.

Home prices also are down; The average fourth-quarter 2008 home price in the Springfield metropolitan area was $117,100, down 3 percent from the same period in 2007 and down 5 percent from the third quarter.

Increased interest

While Stewart said ASID doesn't keep overall numbers related to the amount of remodeling work being requested or performed, anecdotal evidence suggests that designers are seeing more interest in making changes.

"It's on everyone's mind - they're not doing remodeling work at this point, but there's a conscious effort to be aware of it right now," said Stephanie Snadon, interior designer with Buxton-Kubik-Dodd Inc., a Springfield interior design and architecture firm. "What we're doing is trying to help people work with what they have and figure out exactly what their needs are."

Laura Daly, owner of Daktari Interior Design, said that while the interest in updated interior design may be on the increase, the most popular types of projects haven't changed: People want to upgrade their kitchens and bathrooms, and they are converting unused square footage into more living space.

She said there also has been an increase in baby boomers looking to rework their interior space in preparation for aging, due in part to the fact that their future finances may be less secure.

"It's so they can live in their home when they get older instead of having to move to assisted living - they're aging in place," Daly said.

On hold?

But while interest in remodeling has increased, there is some disagreement on whether that increased interest is translating into more work.

Snadon said that some homeowners, while interested in doing work, are waiting until the economy is more stable. Daly, meanwhile, agreed that there is some hesitation but said most of her clients quickly see the financial benefit of remodeling compared to buying new.

"They're just looking for something different, and they know what it costs to get a new house rather than just revamping what they have," Daly said. "There's a little bit of hesitation at first, but when they realize how much they're actually going to save if they just remodel what they have, they usually lean toward remodeling."

The National Association of Realtors' 2008 Cost vs. Value Report says that bathroom and kitchen remodels both offer an immediate return of nearly 75 percent.

Daly said the decision also is made easier by the increasing variety in available finishes and materials in tile, appliances and countertops that make a remodel feel more like new.

More designers

Regardless of whether demand for interior design services is on the rise, the National Council for Interior Design Qualification, which certifies interior designers in the U.S. and administers industry-recognized tests, reports an increased demand for interior design education.

According to data on the group's Web site, www.ncidq.org, nearly 2,000 candidates were signed up to take the NCIDQ examination April 3-4, a 25 percent increase from 2008.

Interior designer Joyce Buxton, who serves on the national group that reviews the NCIDQ certification test every five years, said the increased interest is not a surprise - and is not unique to interior design.

"If people can't land jobs in today's economy, common knowledge says maybe they need to beef up their credentials," she said. "So people either return to school or they get extra credentials."