Renovation business on upswing in Metro Atlanta

Metro-area homes may not be selling, but many are getting makeovers.

While a report released Friday said spending on home renovations is trending down nationally, Atlanta contractors say the number of projects here has gone up the last six to 12 months, and that business has heated up even more this spring.

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This house in an Atlanta neighborhood received a face lift, which cost about $200,000 and was finished in February.

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Glazer’s company added the second story to this house. The same job would have cost about $275,000 a couple of years ago.

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More homeowners, it seems, are deciding to wait out the recession and hunker down at home with some added creature comforts.

Instead of going out to dinner and a movie, folks are popping their own popcorn in fully loaded home theaters. They’re entertaining in kitchens that take a page out of House Beautiful. And now that summer’s here, they’re looking to move outdoors onto patios with built-in stone grills, wet bars and refrigerators.

Helping fuel the renovation rush: Many projects are now being done for far less than they were a few years ago when the housing market was humming. Contractors are competing fiercely for work, and homeowners are pushing for lower prices.

Home remodeler Rocco Sinisgalli said activity has definitely picked up recently, especially in the last month or so as the weather has warmed.

Sinisgalli ought to know. He’s chairman of the Greater Atlanta Home Builders Association’s Remodelers Council, a group of 135 contractors and homebuilders.

Business at his own company, Oneida Builders in Dunwoody, has been steady. It’s averaging six jobs a month, he said. A year ago it was often just four a month.

Fulton County officials say they haven’t seen a noticeable increase in work permits for home remodeling. But that doesn’t mean work isn’t happening, said Bobby Smith, development service manager for the Department of Environmental and Community Development.

Many jobs don’t require permits; some people don’t know to apply for one, Smith said.

“There could be a lot of remodeling going on and we wouldn’t necessarily know about it,” he said.

Renovators like Randy Glazer say they are finding steady work, but of a different sort.

Instead of big jobs like additions, his company, Glazer Design & Construction in Brookhaven, is doing more kitchens and bath restorations and earth-friendly projects.

One reason: the credit crunch. In the last five months, Glazer said, he’s noticed that “it’s hard for people to get loans to add a second floor to their home. Banks aren’t willing to extend loans right now.” Banks that are lending are asking homeowners to fork over 30 to 40 percent in down payment on their projects.

“A lot of people can’t do that,” Glazer said.

Nonetheless, many people with money are still spending money, he said. “They’re just being a little more cautious.”

One silver lining in this tough economy for contractors like Glazer: New licensing requirements that went into effect in Georgia last July. All contractors in the state must have a contractor’s license for any project that is more than $2,500. Part of the licensing process involves testing to prove proficiency.

The new regulation has helped significantly by cutting down on so-called “fly-by-nights,” Glazer said. “You had a lot of folks with pickup trucks that didn’t have insurance or credibility.”