Sunnyvale, CA – April 2, 2009 — The remodeling stars have aligned for US homeowners in 2009. Thanks to the “American Recovery and Reinvestment Act of 2009″, and the lowest price for building materials seen in many years and contractors who are bidding aggressively for work, homeowners can save 20% on many of the most common remodeling projects.
Savings vary by state, region and the specific project, but no matter where and what remodeling is being done, it is less expensive now than it has been for several years to remodel.
For example, a kitchen remodel in Arizona now costs a lot less than it did in 2006. The new windows, doors, roofing and insulation materials can earn the maximum Federal Recovery Act tax credit (on Federal income tax) of $1,500. The new credits apply to remodels and purchases made after the date of enactment of the Economic Stimulus Act for the cost of many products including windows, insulation, roofs, sliding glass doors, garage doors and French doors. To claim the new tax credits homeowners will be required to complete and file IRS Form 5695
In Pennsylvania, in addition to the Federal Tax Credit, the State offers the “Keystone HELP Energy Efficiency Loan and Rebate Program” to help homeowners improve the energy efficiency of their homes. The program offers several types of low-interest loans and, for projects completed after February 23, 2009, Energy Star rebates and Advanced Performance Energy Star Rebates of up to $250 and $500 respectively.
A list of the different rebates, credits and discounts can be found for all states at http://dsireusa.org/library.
In addition to the energy and stimulus package savings, the most common building products, such as lumber, dry wall, insulation, and plumbing fixtures cost 10% less then they did in 2006 according to the Bureau of Labor Statistics www.bls.gov/cpi
The cabinet industry is an example of what has been happening to the sales volume and cost of home improvement materials over the past few years. Sales volume at some manufacturers had dropped 40% by the end of 2008. But in the first three months of 2009, sales rebounded by 10%. Many cabinet companies are offering discounts of 10% to 50% on some product lines
So how does this all impact a typical kitchen remodel? This summary shows the savings potential. Example Kitchen Remodel in 2006
| Cabinets | $10,000 |
| Flooring | $ 2,500 |
| Appliances | $ 3,000 |
| Countertop | $ 5,500 |
| Fixtures | $ 2,000 |
| Doors, windows | |
| Lumber, materials | $ 2,000 |
| Labor | $15,000 |
| Contractor Overhead | |
| & misc costs | $10,000 |
| Total 2006 cost | $50,000 |
| Example Kitchen Remodel in 2009 | |
| Cabinets | $8,000 – 20% savings from retailers |
| Flooring | $2,000 – 20% savings from retailers |
| Appliances | $2,500 – 17% savings from retailers and government programs |
| Countertop | $5,000 – 9% savings from manufactures and retailers |
| Fixtures | $1,800 – 10% savings from retailers and government programs |
| Doors, windows | |
| Lumber, materials | $1,500 – 25% savings from retailers and government programs |
| Labor | $12,000 – 20% savings from contractors |
| Contractor Overhead | |
| & misc costs | $7,000 – 30% savings from contractors and retailers |
| Total 2009 cost | $39,800 – 20% savings from the cost in 2006 |
To achieve this type of savings homeowners will need to take advantage of all the rebates and discounts on windows, doors, appliances, etc. as well as competitive bids from contractors and skilled tradesman. The online remodeling cost estimate calculators at www.remodelormove.com can provide an instant remodeling cost estimate for any region in the US.
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