With all of the economic changes and advancements in technology, remodeling has grown by leaps and bounds in some respects. In three years, the industry has turned to strong energy efficient and green technology and sparked an amazing following online with multiple DIY videos, galleries, epic house renovation stories and more. There have also been significant changes in the tax credits and how people are getting through this recession by choosing to remodel instead of selling their homes. This article will take a look at different aspects that have changed the industry since 2009.
Just as President Obama was stepping into office, he created the American Recovery and Reinvestment Act of 2009, which set aside $4 billion as tax incentives and rebates for homeowners who chose to make energy conscious home improvements. The cap was about $1,500 for most of these home upgrades that included HVAC systems, windows, roofing and appliances. Most homeowners chose to upgrade their homes because of these tax incentives, but these would eventually run out.
Now, there are still tax incentives for homeowners who choose to go green by using solar, geothermal, or wind energy elements in their homes. ARRA tax credits are still in effect if you choose to make these renovations and they are uncapped until the year 2016.
Lead rules also came into effect in 2009. The Lead Renovation, Repair and Painting Rule were active in April 2010. Some remodelers actually stopped working on older homes due to this controversial legislation, as it was costly to deal with the training, documental and business breaking fines for not complying with the law. However, there are now many certification programs that have changed the way remodelers look at the lead paint rule. The rule was also further amended in March 2012 so that it would make things easier on remodelers and clients.
Recent market news shows that the housing market may be making a recover. In 2009, there were just 478,000 housing starts, but now the numbers have climbed to almost 700,000, which is a 31 percent growth.
There's also some changes placed on the exterior value of a home. There is a surge in replacement projects, as many homeowners choose to do exterior replacements, including things like garage doors and walkways. Seven of the top 10 projects,were replacement projects for 2011 through 2012.
Hopefully the housing industry will make its comeback later this year, but remodeling has certainly allowed homeowners to create more value in their homes and change the way that they look at their residences. In addition, many homeowners have found DIY projects to do around the home and continue to make upgrades, adding more worth to their homes each year.