Angie’s List sees remodeling as growth market

Indianapolis-based Angie’s List systematically asked more than 1,000 service providers about business in the coming year.

The response: business is getting better.

“We asked contractors what their conversations with customers were showing, and 62% of them say their customers aren’t just wanting to make improvements next year, they’re willing to spend more on them than customers spent in 2014,” said Angie’s List Founder Angie Hicks.



“More than half of the contractors said customers were planning to add $5,000 to what the average project cost last year,” she added.



The online survey, conducted in November among highly rated companies specializing in home improvement, asked about remodeling trends for 2015, as well as whether homeowners’ budget expectations had changed.



The breakdown of how much customers are planning to spend on remodeling projects next year compared to what customers spent this year:

• 17% to spend $15,000 more; 

• 9 % to spend $10,000-$15,000 more; 

• 23% to spend $5,000-$10,000 more; and 

• 51% to spend $1,000-$5,000 more. 

When it comes to the projects themselves, most are being planned involve kitchens, bathrooms, bedrooms and lighting. Customers are asking for bigger closets and pantries. When it comes to bathrooms, fiberglass around the tub and shower is out and tile is in.



“We’d been hearing occasionally that homeowners are getting tired of cleaning the fingerprints and smears off stainless steel appliances,” Hicks said. “The survey, however, showed 70% of contractors think the shiny stuff is still in – and several of them mentioned fingerprints are worse in lower quality products.”



Contractors told Angie’s List the average bathroom remodel now means customized luxury, and homeowners are willing to pay more for it.



One contractor said his usual bathroom remodel project was in the $15,000 range for years. His average bathroom project is now starting at $20,000. Another contractor said it’s not unusual for homeowners to spend $50,000 on high-end facilities.



Well done bathroom and kitchen makeovers traditionally give homeowners the highest return on home improvement investments, often in the 80% range. But Hicks has some advice for anyone planning on a fast sale.



“Don’t go overboard and price yourself out of the neighborhood,” she warns. “You want to keep up with the Joneses, not wildly outpace them.



Another interesting finding in additional commentary to the survey was high interest in wood flooring over other materials, and interest in higher grade and more efficient lighting systems.