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2023’s Top Kitchen Trends Are All About Saving Money, Honey
By Jennifer Kelly Geddes
Jan 10, 2023
Is your kitchen begging for some updates or a full-on makeover? Then you’ll want to be up on the latest design trends and keep the environment in mind, too.
A new survey of 3,600 homeowners by Houzz has found that an overwhelming majority of people planning a kitchen renovation this year (92%) are looking to include eco-friendly features.
Some of the most popular upgrades chosen include energy-saving appliances (61%) and LED lights (65%), as well as more efficient windows (27%) and fixtures that conserve water (34%).
Yet saving the earth is actually more of a side benefit to homeowners’ main goal: saving money.
According to Houzz staff economist Marine Sargsyan, “the most frequent reason behind choosing sustainable options is long-run cost effectiveness, with environmental-friendliness as a secondary consideration.”
Saving cash isn’t easy, though, given the median spend on minor kitchen renovations has shot up 40% year over year, to $14,000. Meanwhile, the money plunked down for major overhauls (which include replacing all appliances and cabinets) has remained steady at $45,000.
Here’s a detailed look at the report’s findings, which might get some ideas cooking on how to change up your own kitchen, too.
A new year, a new style
As has been the pattern over the past few years, 83% of homeowners who are delving into a kitchen rehab are changing the room’s style. Top designs include transitional (23%), followed by modern (14%) and contemporary (12%). Still love the modern farmhouse look? It remains in the mix and even went up a point from last year, to 11%.
Open floor plans are still going strong
When it comes to kitchen design, the open plan is still in vogue. Last year, interest in this look dropped a bit, but per the latest numbers, 40% of renovating homeowners are opting for cook spaces that are open to the rest of their interiors, which is up from 38% in the previous year.
What’s more, 20% of folks are even looking to open up their new kitchens to the outdoors, with a set of double doors or row of doors taking the top choice (46%), a single door after that (29%), and a pass-through window last, at 14%.
As the new year kicked off, the wild run-ups in rental prices that terrorized tenants last year appear to have leveled off.
January was the 12th month in row where rent growth slowed, according to the Realtor.com® monthly rental report. Monthly rents were down $ 80 from the peak in August, but they were still up 2.9% year over year, to hit a median $ 1,726 a month in the nation’s 50 largest metropolitan areas.
(Realtor.com looked at rents for studios, one-bedroom and two-bedroom apartments, condos, townhomes, and single-family homes in the 50 largest metros. Metros include the main city and surrounding towns, suburbs, and smaller urban areas.
“The biggest takeaway is while the rental growth is slowing, the affordability concerns continue,” says Realtor.com Senior Economist Jiayi Xu.
Tenants have been grappling with sticker shock as rental prices soared during the COVID-19 pandemic. Many couples and individuals moved out on their own, while others were would-be homeowners who were trapped in rentals after being outbid or priced out of the for-sale housing market. This strained the limited supply of rentals, driving prices upward.
Rents were the lowest in Oklahoma City, the only one of the 50 largest metros where tenants can still find a home for just under $ 1,000 a month. Median rents in the metro were $ 982. Louisville, KY, and Birmingham, AL, rounded out the top three most affordable metros with median rents of $ 1,167 and $ 1,178 respectively.
But renters in those lower-priced parts of the country shouldn’t get too comfortable. Prices rose the most in the cheaper Midwest and South metros, going up 10.5% year over year in Indianapolis, 8.8% in Birmingham, and 8.3% in Columbus, OH.
Meanwhile, rents dropped the most in some of the hottest real estate markets during the pandemic. Monthly rents went down 6.2% in Las Vegas, 3.8% in New Orleans, 3.6% in Sacramento, CA, 3.4% in Phoenix, and 1.4% in Austin, TX.
“With high rents across the country, places that offer relative affordability tend to be in high demand, which means more competition and that these lower prices might not last ” Realtor.com Chief Economist Danielle Hale said in a statement. “Many of these metros have fewer available rental homes than [in] previous months, and fewer apartments to choose from means prices are likely to go up.”
Rents also jumped the most for studios, typically the smallest units. They rose 3.9% year over year in January, to a median of $ 1,417 . For one-bedroom apartments, rents increased 2.8% to $ 1,609, for two-bedroom units, rents ticked up 2.5% to $ 1,934 a month.
Prices might wind up rising in some of the nation’s priciest metros as companies order workers back to their offices. That could mean prices jump in places like Silicon Valley’s San Jose, CA, and San Francisco. The median rents in the cities were $ 3,005 and $ 2,809 a month respectively.
“People may move from suburban or cheaper metros to tech hubs because of return to office mandates,” says Xu. “It will boost rental demand once more and increase rental prices.”
Whether
selling or staying put, most homeowners could benefit from a little decluttering.
Decluttering makes moving easier for everyone—and less costly,
too. It is also helpful for those who want to live simpler in their current
residence. In fact, having less clutter and being more intentional about what
homeowners bring into their space is a positive for mental health and financial
health.
Many saw the wisdom of doing so during the pandemic when they
were stuck at home, looked around, and wondered: Why do I have all this stuff
that I never use?
Now, in the dead of winter when many again are indoors for long
stretches can be a good time to begin. Think of it as an adventure to pursue
gradually rather than feel pressure to tackle all at once.
Truly effective—and lasting—decluttering represents a multistep
process that varies according to each person’s situation. Those who’ve
inherited a roomful of “brown” furniture from the 1950s and ‘60s, stacks of
books, photo albums, crystal, and more may feel overwhelmed if they don’t want
or can’t fit these furnishings in their home or apartment or find consignment
shops interested in selling pieces, often because they have so much that’s
similar from others hoping to unload possessions.
The following toolbox is offered up as a resource so that anyone
can get started on their decluttering journey.
What Experts
Advise
Marie Kondo became a
world-touted expert on the benefits of decluttering with her first book,
"The Life-changing Magic of Tidying Up." It extolled the virtues of
owning fewer belongings to have more space to display things that spark joy.
Kondo went on to write more books, and
developed two Netflix series: "Tidying Up with Marie Kondo"
and "Sparking Joy with Marie Kondo." She also opened an online store,
KonMari, and started a certified-consultant training business.
If the Marie Kondo method doesn't quite spark joy, there are
alternatives. The “Swedish Death Cleaning,” which involves getting rid of
anything not needed to relieve others of the task to discard a loved one's
possessions after they’ve died. Margareta Magnusson, author of "The Gentle
Art of Swedish Death Cleaning: How to Make Your Loved Ones’ Lives More
Pleasant," says the practice offers an underlying message of caring for
our heirs.
Decluttering, even if moving isn't on the immediate radar, is a
great idea for many reasons. First, you never know when a move might be
necessary. An intentional approach to decluttering well before moving ever
becomes a questions takes a lot of stress out of the moving process. Doing so
can save time in packing up later, slash moving costs and help reduce the
amount of new living space someone might require. Even before it's time to
move, there's the listing process to think about. Decluttered settings help present
a better visual, which helps maximize sales, says Christopher Matos-Rogers,
associate broker, Coldwell Banker Realty in Atlanta.
While many find it
tempting to put off the difficult decisions about what to keep and what to toss
until after they move, consider the wisdom of being realistic about what can
fit in their new home, says Barry Izsak, an Austin, Texas-based move/relocation
expert and founder of PackingMovingUnpacking, an online service that
helps those moving find movers in their area. “This is especially
important for those moving long distances," he says. "Consider
clothing in a new climate. They might be able to ditch most of their winter
clothing and that snow blower, too,” he says.
Know When to Seek Professional Help
Homeowners who can’t handle the task on their own should
consider hiring a certified member of the National Association of Professional
Organizers (NAPO) or the National Association of Specialty and Senior Move
Managers (NASMM) or even someone with years of experience, says Izsak. As a
former president of NAPO, Izsak says the national hourly rate professionals
typically charged hovers between $50 and $100, depending in part on their
locale. Your Realtor may also be able to
help you with this process, or suggest professionals who can help.
Rhea Becker—who offers
organizing services for homes and offices in Boston—says many of her clients
appreciate how professionals speed up the process by keeping them focused on
maximizing profits and avoiding digressions over each object’s history. “With a
professional, you have the best chance to cut the time and get some money on
the table since they know what will sell,” she says.
Consider Grouping
Items Into Categories
Whether or not you decide to bring in a professional, it helps
to categorize each item in a given area into one of five groupings: keep,
store, sell, donate or toss. Izsak says the litmus test he uses and shares with
clients is to save an object only if it fits one of these three criteria: It’s
useful, beautiful, or loved. Becker suggests homeowners snap photos of favorite
items that are difficult to part with to give them a visual memory they can
retain rather than keeping the item itself. Here’s specific help you can offer
them for each pile:
Sell
Midcentury modern furniture and contemporary art both appeal
widely to buyers of all ages, especially if they’re good quality and in decent
condition. Create a list of estate sales specialists and consignment shops in
your area that are known for fair dealing. However, be aware that many services
that do the work of selling take a big cut, often half the sales price. If you
are inclined to try to sell items yourself, try eBay for the best prices.
However, if you’re not willing to go through the trouble of shipping sold
items, post goods on hyperlocal online sites, such as neighborhood Facebook
groups or Craigslist.
Donate
Remember the adage,
“One person’s trash is another’s treasure.” If you have older children ask them
to claim beloved items from their childhood. Becker says it’s important to set
a time limit for those who are interested to pick up what they want. Take note
of what charities will accept and when, and even which ones will pick up
donations, saving your clients time and hassle. Some charities have gotten
choosier about what they accept. For instance, many won’t take mattresses, box
springs, pillow cases, or sheets. Real estate salesperson Christopher Flores
with Keller Williams Larchmont in Los Angeles suggests a local halfway house
that helps troubled young adults stabilize their lives as a great destination
for used goods. “That way they provide furniture and clothing they don’t need
to those who may have nothing,” he says. You may be able to secure a tax
donation from the IRS if items are contributed to tax-exempt
organizations. Because of recent changes
in the tax code, it’s best for clients to keep detailed notes of what they
donate and to consult their tax adviser for the exact percentages they will be
able to write off.
Toss
Sometimes it’s easier
and will save time to contact companies such as JunkLugger to haul away
unwanted items. Homeowners can also
consult HomeAdvisor’s list of trash-hauling service providers by ZIP code.
Also, it’s important to be aware of laws governing trash. Some municipalities
allow homeowners to leave stuff by the curb with a sign that reads, “please
take me,” while others levy fines for such activity. A more organized version
of this idea comes in the form of local Freecycle chapters, part of a grassroots nonprofit where
local people post stuff for free pickup in their own towns to help keep usable
goods out of landfills.
Store
Off-Site
It may be tempting to
store certain household items off-site, and one in three Americans do, There are numerous reasons why. Aside from apartments getting smaller,
people are unwilling to part with stuff permanently. The pandemic required a
bit of a shuffle as well, requiring work-from-home space that didn't exist
previously. Some families moved in with one another and needed a place for the
extra stuff.
Picking self-storage requires homework. If you choose this
option, consider units that are locked, insured, climate-controlled, and offer
access whenever they want. Prices can vary widely. Self-storage isn’t a
great long-term solution, as months can extend into years and beyond. “Often
storage is a matter of postponing the inevitable. It’s better to get rid of
whatever you don’t need,” Izsak says. “If you know you’re storing something for
a granddaughter who will use it in a year that makes sense. Otherwise, get rid
of it now!”
Americans Woefully Misinformed About Nation's Housing Market
Daniel DeVise The Hill January 23, 2023
A new survey finds Americans are woefully misinformed about the nation’s mercurial housing market, even as millions of them prepare to buy homes.
Twenty-eight million Americans plan to purchase a home in 2023, according to a survey released Tuesday by NerdWallet, the personal finance company. On average, they hope to spend $269,200.
But that figure falls more than $100,000 short of the median home price, which was $388,100 in December, according to the real estate brokerage Redfin. Home prices crossed the $269,000 threshold sometime in 2013, Federal Reserve statistics show.
If prospective homebuyers sound oddly optimistic about prices, that may be because they are pessimistic about the state of the housing market. Two-thirds of Americans surveyed said they expect an imminent crash.
Real estate economists do not. Lawrence Yun, chief economist for the National Association of Realtors, forecast an average sale price of $385,800 this year, about the same as last year. Redfin predicts a 4 percent drop: bad news for sellers, but hardly a crash.
“Home prices already have been falling, especially on the West Coast, and prices will fall in some cities in 2023,” said Holden Lewis, a home and mortgages expert for NerdWallet. “But a drop in home prices isn’t necessarily a crash.”
Another head-scratcher: 61 percent of Americans told pollsters current mortgage rates are unprecedented, meaning that they have never been seen before.
“We actually defined it,” said Elizabeth Renter, data analyst for NerdWallet.
The average rate for a 30-year fixed mortgage hit 6.15 percent last week, according to the Fed. That’s higher than most mortgage rates of the past few years, which have ranged below 3 percent at times.
But it is not unprecedented. Over the last 50 years, NerdWallet reports, 30-year mortgage rates have averaged 7.75 percent. Mortgage rates in the 6 to 7 percent range were common as recently as 2008.
Homebuyers have basked in a climate of historically low rates for more than a decade. The Fed cut rates dramatically in the Great Recession of 2008 to stimulate the economy, a campaign that continued, on and off, through the COVID-19 pandemic.
Runaway inflation prompted a dramatic series of hikes in 2022, which pushed mortgage rates back to “normal” levels, at least in a historical sense.
The new survey of 2,051 American adults, conducted by the Harris Poll for NerdWallet, is the latest iteration of an annual poll. Pollsters have found overconfident home shoppers for several consecutive years.
“We know from the past five years, roughly 10 percent of Americans say they’re going to purchase a home in the next 12 months, which is wildly optimistic,” Renter said. “Part of it could be that they’re unaware of what’s going on in the housing market.
The survey found more realism when asking respondents how their homebuying plans had panned out in 2022.
Seventy percent of Americans who had planned to buy a home in 2022 did not succeed. Some of them made offers that were not accepted. Others shelved their plans because they couldn’t find affordable homes.
With over 20 years experience in Fairfield County real estate, Rob has seen both the market’s high and low points. His approach to his clients has remained the same. Survey the market daily to understand where it is trending, work with a limited number of seller and buyer clients to give them the best possible service, and establish a rapport of openness and honesty.
On average, Rob’s listings sell at nearly 95% of asking price, testament to his outstanding pricing acumen and understanding of market conditions. He has served as the Chairman of the Technology Committee for the Mid-Fairfield County Association of Realtors and as its representative on the state level. Rob resides in Westport with his family.
