Home renovations, additions on the rise

As the economy shows signs of improving, one sign is that more people in Northwest Arkansas are willing to spend money on renovations and additions to their home.

City planning statistics are proof that there has been a noticeable uptick in the amount of homes being renovated or added on to throughout the region and anecdotal evidence from local construction experts agree. 


Information from the four biggest cities in Northwest Arkansas — Bentonville, Fayetteville, Rogers and Springdale —are all reported slightly differently, but the trends demonstrate the same upward motion. 


“We have seen a modest uptick in permits this year across the spectrum and feel cautiously optimistic that it will continue to grow as recovery happens and confidence returns,” said Mike Chamlee, chief buildings official for the City of Springdale. 


According to information from the City of Springdale, there were 20 permits for renovations or home additions in June 2013 for a total valuation of $380,623. In June 2012, there were 13 permits in that category for a total valuation of $376,291. 


According to the records for the City of Rogers, there were 10 permits listed under remodel, addition or garage for June 2013 compared to seven in June 2012. 


Dan Pauley, building inspector with the city, he’s seeing a “lot of room additions” and homeowners taking previously unused space and finding a use for it. For example, converting an empty attic space to a living area, he said. Pauley added that there have been a lot of back porches, decks and sunrooms being built.



“The economy is getting better, that could have something to do with it,” he said. “The projects that people wanted to do five years ago they are finally able to start doing now.”

Pauley said that the number of new homes has seen an even larger increase in Rogers, something he attributes largely to the quality of life available in the city.


Quality of life is also attributed for an increase in remodels and additions evident in Bentonville. 

City officials provided a quarterly view of the numbers which indicate a decrease in the first part of 2013 from 2012 but an increase in the number of permits during the second quarter of 2013 compared to the same timeframe in 2012. 


Here is a comment from Troy Galloway, Community Development Director:
 “As you know, it is pretty normal for our permit activity in general to pick up during the spring months of the year as we enter the prime building months of the spring, summer, and fall,” said Troy Galloway, community development director. “As for the increase in remodel permits in general, I think it speaks to the continued interest in Bentonville as place to live because of its proximity to jobs and our increasing cultural and entertainment offerings — not to mention that many of these remodel are downtown properties — which happens to be one of the hottest real estate markets in NWA at present.”

The City of Bentonville reports that from January 2013 to March 2013 there were 33 permits issues, valued at $817,923. During the same time in 2012 there were 53 permits issues but the value was only $525,592.


In April to June 2012, there were 61 permits issues at a valuation of $974,975. Both numbers increased during the same timeframe in 2013 to 64 permits valued at $1.335 million.

According to a report from the City of Fayetteville, there was no change in permits issued between June 2012 and June 2013. Both months there were 16 permits. Representatives from the city could not be reached for an interview in time for publication. 


Local contractors agree that the number of renovation/addition jobs is climbing, although they are leery of sharing actual profit numbers. 


Steve Abshier of Abshier Construction said that it’s about even between the number of renovations and additions that his company has been hired to do recently. He estimated that the number of inquiries has doubled.


“There’s definitely been less tire kicking this year and people are more serious about it,” he said.


Many of the jobs include kitchen remodels and adding on porches. In one case, he’s been hired to renovate the entire home interior. Abshier said that typically kitchen and bathroom remodels are known to add the most value to a home. 


“Most people just want their home more comfortable for themselves (as they live in the house),” he said. 


Jack Hales of Jack Hales Construction Company and also president of the Northwest Arkansas Home Builders Association, said that there is not only an increase in renovations and additions, but overall new residential construction. This is both good and potentially problematic because the uptick in all construction means that subcontractors are now very busy. 


“We’re teetering on a shortage of labor here,” he said. 


The uptick is also already causing an increase in prices both for labor and materials, he said.


“All materials are going up. If it hasn’t gone up, it will go up,” he said. “If someone is planning on doing a remodel, the sooner the better.”