Six reasons why the Covid-19 lockdown is the time to plan a home renovation project
We write hoping you and yours are well. Some restrictions are lifting in our area, but the effects of the pandemic are still being felt in many ways, some almost too much to bear and our hearts go out to you if this is true for you.
If the coronavirus has not exacted such a toll on you, at the very least you know more now about your own resilience and resources. After coping with many weeks of stay-at-home orders, you probably also know more now about your own home’s limitations. If you are in a state of mind to resolve these limitations, please read on to see why this may be the time to plan a home renovation, an addition, or new home.
#1 Borrowing money is at historic lows.
Unlike the housing crisis of 2008, today there’s money available. In the 2008 crisis, banks stopped lending because they had made so many bad loans. They were foreclosing on properties and not making new loans. That’s not the case right now. You can find new mortgage and re-financing rates for as little as 3%. This is an amazing loan rate and banks are lending.
#2 You have now stress-tested your house.
The home is supposed to be your refuge, your haven. But there’s a lot of stress going on in the house now, especially for families with school-age kids. Everybody’s home, many parents are working from home; even college students and recent graduates have returned home. The house as designed may not be functioning as well as it could be, given the additional daily stresses. You may not have the right home office setup or a place for kids to work online. That family room or extra bathroom might feel crucial now. Perhaps you’re contemplating bringing your parent(s) to live with you.
Maybe you were already aware of your home’s limitations or failure to meet current needs and have been putting off addressing them. But when you can’t leave, some of the deficiencies of the layout or size may be hard to ignore.
#3 The building industry is facing a new normal.
We’ve been speaking with various contractors about what comes next, and there are two schools of thought. Either one favors homeowners who have a plan for their addition/renovation. One is that basic economics haven’t changed significantly for people who are contemplating a major home improvement, that there remains a pent-up demand for housing, that contractors have a backlog due to cease work orders, and that there will be massive delays in processing zoning and building permit applications once restrictions are eased. This version suggests that there will be high demand for architectural and construction services, so having a project “shovel-ready” this summer or fall is wise. If you have a project in mind, you’ll want to be at the front of the line.
The second school of thought is that our recovery will be slow and deliberate, that homeowners will be more risk-averse financially, that contractor and subcontractor availability will increase and that construction costs will dip. Once contractors work off their backlog, they will not have new work coming in because their pipeline will have dried up. Material prices will drop, labor costs will be suppressed, and contractors will work for less overhead and profit because they’re just not as busy. For the past 5 to 7 years it’s been hard to get a quality contractor and their prices have reflected that. This will be the case probably 3 to 6 months after stop-work orders are lifted and you’ll want to be prepared to take advantage of the dip.
#4 The federal government encourages economic activity.
The government is pouring money into the economy to try to keep people employed and small businesses afloat. It’s not an exaggeration to say that preparing to renovate or build will help get your friends and neighbors back to work.
#5 You have more time than usual right now.
Right now, many people have more time to plan a home renovation, addition, or new build than they otherwise would. We all see the importance now more than ever of being prepared for what comes next.
#6 The lockdown has become the great re-balancer.
The “silver lining” that many of you have mentioned is that, for those working outside of the essential services, the lockdown has provided an opportunity for many people to restore some balance in their life. For all, this has become a time to question what we were doing before. It’s become a lot more clear for almost everyone that spending more time with family or other loved ones is critically important. Everything has been magnified and crystalized.
We can help.
If this resonates with you, reach out to us at info@kriegerarchitects.com, or fill out this form to set up a Clarity Call. We are operational (mainly working from home of course) and would love to talk with you about your particular situation and how we can help. Thank you and be well. We will get through this together.