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The Honolulu Advertiser

Posted on: Wednesday, August 25, 2004

Remodeling projects burgeoning

By Catherine E. Toth
Advertiser Staff Writer

There wasn't much about her kitchen that Dee Carvin liked.

Gerry and Dee Carvin took advantage of low interest rates and rising property values to have the kitchen of their 25-year-old condominium apartment renovated by American Cabinetry Inc.

Deborah Booker • The Honolulu Advertiser

It was dark and dreary — a contrast to why she moved to Hawai'i from Boston five years ago.

So last year Carvin decided to renovate the kitchen in her 25-year-old condo on Kamoku Street. Make it more inviting and livable.

"Now it's beautiful," raved Carvin, a retired office manager who lives in the condo with her husband, Gerry.

"We're so pleased."

Some people who are undertaking renovations want to improve their units for resale. Others, like the Carvins, want to upgrade their existing dwellings, taking advantage of low interest rates and rising property values.

The renovation and remodeling business is booming in Honolulu, and contractors, architects, designers and related businesses are scrambling to keep up with the demand.

In 2003, there were $400 million worth of additions and alterations for private homes and businesses in Honolulu, according to the state Department of Business, Economic Development and Tourism. That was up 50 percent from $267 million in 2001. Statewide, the figure was $509 million in 2003, up 36 percent from $374 million in 2001.

The spike in business has created a backlog of projects, with some companies adding on more designers or hiring additional independent contractors to keep up with the demand. Others have months-long waiting lists.

Business at the family-owned American Cabinetry Inc., which renovated the Carvins' kitchen, has been growing about 30 percent each year for the past few years, said certified kitchen designer Ryan Boyd. The company has hired two additional office workers and expects to hire another full-time designer and two marketing staffers soon.

Typically business slows down during certain times of the year, in particular January and August. But not this year.

"This is the most consistent year we've ever had," Boyd said. "The last three to four years have just been crazy."

American Cabinetry Inc. has been averaging five renovations a month. Costs to remodel a kitchen average about $40,000; for baths, $10,000. Some projects have exceeded $100,000.

Fueling the boom in renovations are pent-up demand, rising real estate values, more cash from mortgage refinancing and an improving economy, industry experts say.

"People have held off renovations for years and years, and now things are looking bright," said Jim Byxbee, president of Homeworks Construction.

"Everything is rolling."

He said nearly three-fourths of homes on O'ahu are older than 30 years and in need of upgrades and repairs.

His business has improved 100 percent over the past two years, he said, with renovation projects now making up half of his jobs. He's had to add 20 people to the payroll to keep up with the demand.

Byxbee, who is chairman of the BIA Home Building & Remodeling Show, said that another factor affecting the growth of renovations has been the popularity of home-improvement TV shows such as "Trading Spaces" and "While You Were Out."

People are coming to designers armed with remodeling ideas often gleaned from those shows.

"They see homes being remodeled and looking beautiful and say, 'I can do that, too,' " Byxbee said.

"People are putting money back into what they own."

Roxanne Okazaki, certified kitchen designer and president of Lifestyle Kitchens, said that more people are investing in upgrades to their homes.

Some of her clients, many of whom live in East Honolulu, are even building libraries and theaters.

"We're seeing a lot of people wanting to spend a lot of money on the most important parts of their homes," Okazaki said.

Her company, which specializes in high-end renovations, has seen a 35 percent increase in business from last year. Kitchen renovations can cost upwards from $80,000. It's not uncommon, she said, for people to spend more than $100,000 on just a kitchen.

"People are wanting quality; they're asking for quality," Okazaki said. "And they're willing to spend a little more upfront because in the long run they feel it will pay off. They're willing to pay more for better products."

The cost of renovations can vary, depending on what homeowners want. The wide range in quality and cost of products and appliances is a factor, along with the complexity and scope of the project.

And in the past few years, the cost of materials and labor has also risen, so designers charge more to make up the difference.

For example, the price of lumber has gone up 150 percent from two years ago, Byxbee said. Metals such as gutters and nails have risen 80 percent. Labor has also jumped from two years ago to $35 an hour, up about 30 percent.

"The cost of building has gone up," Byxbee said. "And it's never going to go back down."

Reach Catherine E. Toth at 535-8103 or ctoth@honoluluadvertiser.com.