Summer is the peak of remodeling season, and the end of winter tends to find many homeowners dreaming of major projects to take on once the sun returns. With those dreams come thoughts of remodel costs.
Several factors have confused the home remodeling market in the past few years — the COVID-19 pandemic, various material shortages, labor difficulties and rampant inflation, to name a handful — and the home remodeling world doesn’t look quite like it used to.
Here are a few recent changes that you’ll want to consider as you plan your next Whatcom County home remodeling project:
Costs have gone up. An unfortunate reality of life after the COVID-19 pandemic is that costs have gone up across the board.
Material prices have increased due to heightened demand, shortages and supply chain issues, and that is only part of the story. Labor rates also have increased significantly — not just in home remodeling, but in all the trades in Washington state, from concrete to electricity to plumbing to landscaping. Prevailing wages for carpenters, for example, have gone up nearly 20% in the past four years, according to the Washington State Department of Labor & Industries.
Those costs have translated to higher overall project costs when it comes to a home remodel.
Property values also are up. One factor mitigating higher construction and remodeling costs is that property values have exploded, especially in Whatcom County.
People can get sticker shock in Bellingham, Lynden and Ferndale when they consider that a full-scale kitchen renovation may cost them $150,000 or more — after all, they probably purchased the property 25 years ago for just $250,000 or less. However, it’s likely that the home’s property value has increased rapidly since then — tripling or even more — making it probable that the homeowners would get their money back (and more) if they were to sell their home after a renovation.
In Bellingham and the surrounding areas, a kitchen renovation that costs $140,000 on a house worth $700,000 represents just 20% of the overall value of the home. It is likely your home will increase significantly in value after the work is complete, but the return on your remodeling investment will vary depending on multiple factors, including what part of the home was renovated, the quality of the work completed, and, perhaps most importantly, the location of the property. If you are concerned about resale value after a remodel, you may want to consult a local real estate agent or appraiser to determine a budget that fits your specific needs.
According to JLC’s online remodeling cost estimator, the average cost of an upscale kitchen remodel in the Western United States is about $171,000, with a midrange remodel coming in at $88,000.
Other parts of the country that are seeing more modest remodeling costs also have much lower property values.
What can you expect to pay for a Hudson remodel? Let’s look at kitchens, which tend to be the most expensive remodel a customer might look for. Higher end or larger kitchen remodels generally cost around $150,000 to $200,000 at Hudson Remodeling, as of early 2023. Hudson Remodeling’s average for a full mid-range kitchen remodel in 2023 centers more around the $100,000 to $120,000 mark — perhaps less for a tiny kitchen.
Of course, there can be great variations in final cost, depending on the fixtures and finishes chosen and the overall extent of the remodel. During the Hudson home remodeling process, we’ll talk about all of these factors and more.
Purchasing a home is a major life decision, and in many ways, a home remodel is, too. Often, what you get from a well-done remodel carried out by a reputable local contractor can be even more dramatic — and well worth it — than a home purchase. If you go into the project with that in mind, we’re confident you’ll be thrilled with the results.
Looking for inspiration? Check out these galleries of recent Whatcom County home remodeling projects.