In This Article
The home renovation industry continues to evolve rapidly. As a homeowner planning a project, understanding current trends helps you make better decisions, set realistic expectations, and avoid common pitfalls.
Here's what's happening in the renovation industry that affects your projects.
Cost and Pricing Trends
Materials Costs Remain Elevated
After significant increases in recent years, material costs have stabilized but remain high:
Current realities:- Lumber has settled but is still above pre-pandemic levels
- Appliances face ongoing supply constraints
- Specialty materials (tile, fixtures) have long lead times
- Energy-efficient products command premiums
- Budget 10-15% more than you would have three years ago
- Order materials earlier to avoid delays
- Consider alternatives when premium products are scarce
Labor Costs Continue Rising
The skilled trades shortage drives labor costs up:
Industry challenges:- Fewer young people entering trades
- Experienced workers retiring
- High demand across all construction sectors
- Immigration policy affecting labor availability
- Labor-intensive projects cost more
- Quality contractors are busy and selective
- You may wait longer for preferred contractors
- DIY temptation increases (caution advised)
Total Project Costs
For planning purposes, typical project costs have increased:
| Project Type | Previous Range | Current Range | |--------------|----------------|---------------| | Kitchen remodel | $25,000-50,000 | $35,000-70,000 | | Bathroom remodel | $10,000-25,000 | $15,000-35,000 | | Addition | $200-300/sq ft | $250-400/sq ft | | Whole-house renovation | $100-200/sq ft | $150-300/sq ft |
Ranges vary significantly by location and scopeContractor Availability Trends
Demand Remains Strong
Despite economic uncertainty, home renovation demand stays high:
Driving factors:- Aging housing stock requiring updates
- Remote work driving home office demand
- Homeowners staying put and improving
- Pent-up demand from pandemic delays
Quality Contractors Are Selective
The best contractors have plenty of work:
What this means:- They can choose their projects
- Problem clients get turned down
- Price shoppers get deprioritized
- Professional, prepared homeowners get preference
- Be organized and clear about your needs
- Have realistic budgets
- Communicate professionally
- Be flexible on timing when possible
Project Timelines Extending
Expect longer timelines than historical norms:
Current delays:- Material lead times (appliances, windows, cabinets)
- Permit processing backlogs
- Subcontractor availability
- Inspection scheduling
- Small projects: 2-4 weeks (was 1-2 weeks)
- Mid-size renovations: 6-12 weeks (was 4-8 weeks)
- Major renovations: 4-8 months (was 3-6 months)
Technology Trends
Virtual Design and Planning
Technology is changing how projects are planned:
Available tools:- 3D renderings and virtual walkthroughs
- Augmented reality for product placement
- Online design consultations
- Digital project management platforms
- Better visualization before committing
- Fewer surprises during construction
- Easier communication about expectations
- Documentation throughout the project
Smart Home Integration
Renovations increasingly include smart technology:
Popular integrations:- Smart thermostats and HVAC controls
- Automated lighting systems
- Security cameras and doorbells
- Voice-controlled appliances
- Whole-house automation
- Wiring needs planned during renovation
- Technology evolves quickly
- Installation costs vs. DIY options
- Long-term maintenance and updates
Project Communication
Digital tools are improving contractor-homeowner communication:
Emerging standards:- Project management apps with client portals
- Photo documentation of progress
- Digital change order approvals
- Online scheduling and updates
- Contractors who embrace communication technology
- Clear processes for updates and approvals
- Documentation that protects both parties
Design and Product Trends
Energy Efficiency Priority
Energy-efficient products are increasingly expected:
Popular upgrades:- High-efficiency HVAC systems
- Heat pump technology (heating and cooling)
- Better insulation and air sealing
- Energy-efficient windows and doors
- Smart energy management
- Federal tax credits for energy improvements
- Utility rebates
- State incentive programs
- Long-term utility savings
Sustainability Focus
Environmental considerations influence choices:
Sustainable options:- Reclaimed and recycled materials
- Low-VOC paints and finishes
- Sustainably sourced wood
- Durable materials (longer replacement cycles)
Multi-Functional Spaces
Post-pandemic, space flexibility matters more:
Popular requests:- Home offices that convert to guest rooms
- Kitchen islands with workspace
- Outdoor living with weather protection
- Flexible basement and bonus room spaces
Accessibility and Aging-in-Place
More homeowners plan for long-term needs:
Common improvements:- Wider doorways
- Walk-in showers with seating
- Single-floor living capability
- Grab bar reinforcement (even if not installed yet)
- Non-slip flooring
Industry Concerns for Homeowners
Contractor Quality Variance
The skilled labor shortage has implications:
Challenges:- Less experienced workers entering the field
- Training quality varies
- Supervision may be limited
- Quality control inconsistent
- Thorough vetting of contractors
- Clear expectations in contracts
- Regular progress inspections
- Don't pay ahead of satisfactory work
Insurance and Liability
Insurance trends affect homeowner risk:
Industry developments:- Some contractors reducing coverage to cut costs
- Workers' comp violations more common
- Liability gaps leaving homeowners exposed
- Verify current insurance certificates
- Confirm coverage amounts are adequate
- Check contractor's safety record
- Consider additional umbrella coverage
Payment and Financial Risks
Economic pressures create contractor cash flow issues:
Warning signs:- Requests for larger deposits
- Pressure for early payments
- Subcontractors reporting non-payment
- Material supplier complaints
- Never pay ahead of work completed
- Tie payments to milestones
- Get lien waivers from subs
- Know your state's mechanic's lien laws
What This Means for Your Project
Planning Advice
Given current trends:
Start earlier: Allow extra time for contractor selection, permits, and material ordering. Budget conservatively: Add 15-20% contingency beyond estimates. Document everything: Written contracts, change orders, and communication records. Verify thoroughly: Don't assume credentials—verify insurance, licenses, and references.Execution Advice
During your project:
Communicate clearly: Establish communication expectations upfront. Stay engaged: Regular check-ins and site visits. Address issues early: Small problems become big problems if ignored. Protect your payments: Pay for completed work, not promises.Industry Evolution
The renovation industry is becoming:
More professional: Technology and customer expectations drive improvement. More expensive: Labor, materials, and compliance costs rise. More complex: Permits, codes, and technology requirements increase. More variable: Quality gaps between good and bad contractors widen.FAQ
Will material costs come down?Unlikely to return to pre-2020 levels. Supply chains have adjusted, labor costs embedded in manufacturing have increased, and inflation has reset baseline prices.
Is it a good time to renovate?It depends on your situation. Prices aren't likely to drop significantly, and your needs don't wait. If you need the improvement, the best time is when you're ready.
Should I wait for contractor demand to ease?Demand for quality contractors has remained consistently high for years. Waiting for a "slow period" often means projects get pushed indefinitely.
How do I protect myself from contractor problems?Thorough vetting before hiring, clear contracts, milestone-based payments, and staying engaged during the project.
Navigating a Changing Industry
The renovation industry's evolution makes homeowner protection more important than ever. The variance between excellent and problematic contractors continues to widen.
Vetted Crews helps Indianapolis homeowners navigate this complexity by ensuring every contractor meets rigorous standards for licensing, insurance, quality, and reputation.
Protect your next home project—work with contractors you can trust.