L.A. Area Leading U.S. in Pace of Home Remodeling

Metropolitan Los Angeles leads the United States in home remodeling activity, according to a study by the National Assn. of Home Builders.

The study was based on a random sampling of 3,500 homeowners who had completed a home remodeling project in the last few years.

Nearly all of them--95.6%--live in detached homes with a median market value of $136,678. Nearly half of the homes were built between 1960 and 1979, have an average of 2,248 square feet and their owners have been living in them for 10 years. Most of the homeowners surveyed said they had no plans to move in the next year.

The survey, conducted in August and September, revealed that:

For every dollar homeowners spent on remodeling projects, they estimated they added 95 cents to the value of their home.

More than 55% of homeowners surveyed bought materials, products or appliances that were then installed by a contractor, including lighting fixtures, appliances, flooring or carpeting.

Homeowners used magazines, manufacturer brochures and booklets to develop ideas for their modeling projects.

The home-improvement projects were financed by savings and home equity loans.

The remodeling projects most often done by professional installers were baths, kitchens, roofs and carpeting.

The most popular do-it-yourself projects were painting, wallpapering, landscaping and installing decks.

The three most important factors in selecting a contractor were: the company’s reputation, the recommendation of a friend or neighbor, the fact that the contractor had already done work on the home.

Nearly 50% of those surveyed said they found the remodeler they hired through a personal referral. And 77.8% of them said they would refer the contractor they used to a friend.

The most common complaints by the homeowners about their contractors were: not finishing the job on time, being slow in completing final details and in making corrections, and starting the job later than they promised they would.

A total of 90.7% of the jobs were protected by a written contract, and 67.7% had written warranties on the completed work.

Many homeowners--74%--said they’d feel more confident of their remodeler if a multi-year warranty were offered, and 73% said they’d feel more confident if their remodeler had to pass screening requirements set by a professional organization.

In a 1988 study of remodeling contractors, the home builders group found average prices for some common major remodeling jobs:

Complete rehabilitation: $34,983.

Second-story addition: $42,007.

Historic renovation: $118,633.

Kitchen remodeling: $8,895.

New bathroom: $7,533.

New room: $22,670.

Finished attic: $12,538.

Finished basement: $9,878.

The survey also found these average prices for other common rehabilitation jobs performed by remodelers:

Replacing a roof: $3,054.

New deck: $3,377.

Bathroom remodel: $4,413.