Remodeling in Today’s Economy

The residential construction sector has experienced a shift over the past 18 months, where economic circumstances have both helped and hurt the demand for renovations and remodels.  While general spending on new construction has declined, a combination of falling construction costs, improved tax incentives, and rising energy costs, have led to a proportional increase in demand for residential remodels. Homeowners are finding that now is an excellent time to take advantage of these incentives to remodel and increase the efficiency of their homes for much less money than in recent times.

Strucutural Associates’ recent renovation and service projects point to some of the most popular areas of a home to improve, as well as inexpensive ways you can increase the energy efficiency of your home.

Kitchens & baths- Any realtor will tell you that kitchens and bathrooms are one of the best places to add value to your home.  Kitchens especially have become a primary gathering spot in the home, and more attractive and better organized kitchens can be a major selling point of the home.  In addition, the American Recovery and Reinvestment Act includes a “Cash for Appliances” program similar to the Cash for Clunkers program.  The program offers consumers credits for new Energy Star qualified appliances.

Insulation & proper sealing- Adding insulation to your home, as well as verifying that all air gaps are properly sealed, is one of the best ways to minimize the heating and cooling losses from your home.  Doors and windows that are not properly sealed can be the primary source of energy loss in your home.  Many local utility companies will perform “energy audits” that will help determine how well your house is sealed, as well as which areas may be most troublesome.

Window & door upgrades- Homes that are 20-30 years old have windows and doors that are terribly inefficient by today’s standards.  If you perform an energy audit on your home and determine that you’re losing a considerable amount of energy (even if your home is well sealed), you should consider replacing your windows and doors.  A considerable amount of energy can also be lost through inefficient windows and doors, and replacing them can also be an excellent way to improve your home’s appearance.

Mechanicals- Multiple elements of your home’s mechanical and control systems may be contributing to an inefficient use of energy.  Outdated water heaters, furnaces, boilers, and other pieces of equipment are likely using considerably more energy than newer energy efficient models.  The “Cash for Appliances” program mentioned above also includes energy efficient mechanical equipment, making this an excellent time to upgrade your home’s mechanical system.  Pairing new mechanical equipment with intelligent thermostats and control systems can further increase the efficiency of your home’s heating and cooling systems.

Light bulbs- Homes that have a considerable amount of incandescent lighting are prime candidates for energy efficient retrofits.  A typical incandescent light is only about 10% efficient- meaning that 90% of the energy used is converted to heat while only 10% is converted to light.   This heat loss leads to further inefficiencies when a house full of incandescent light bulbs is trying to be cooled in the summer.  Companies have responded by offering both compact fluorescent lights (CFLs) and light emitting diode (LED) bulbs that can easily replace different styles of standard incandescent lights.  Both CFLs and LED bulbs last longer than incandescent bulbs, saving considerable amounts of money in the long run.

While this list of popular remodeling and retrofitting strategies is only a sampling of what you can do to your home, these items represent some of the most popular homeowner renovations.  For details on tax credits that are available for your remodel, please contact us or visit:   http://www.energystar.gov/taxcredits for details.