"Home prices are high, so people are renovating instead of moving"—remodeling gives way to 'stay-modeling'

[Financial News] As 'stay-modeling,' or renovating one's current home to suit personal tastes instead of moving, gains attention as a new way of living, the center of gravity in the remodeling market is shifting. Remodeling demand has traditionally been linked to housing transaction volumes, with the assumption that people renovate their homes when they move. Recently, however, demand has emerged for improving specific areas or renovating an entire home while continuing to live there, prompting the industry to adapt.
 According to the interior design industry on the 21st, interest is growing in 'partial renovations' that focus on upgrading only necessary areas, such as replacing the kitchen, bathroom, or built-in closets, or applying interior film in an occupied home. Another approach is to place belongings such as appliances and furniture in storage and stay in a short-term rental during construction while fully renovating the existing home.
 According to the short-term rental platform 33m2, business trips and work accounted for the largest share of tenants' reasons for use at 38%, followed by moving and interior work at 24%, travel and leisure at 23%, and studies and other purposes at 15%. Short-term rentals are also being used as temporary housing during moves and interior renovations.
 Remodeling companies are also seeing changes in their performance. Hanssem's Rehaus division posted a 13% year-on-year increase in sales in the second quarter of this year. Operating profit reached KRW 9.3 billion, marking a return to profitability.
 Alongside the trend of customizing homes where people plan to live for a long time, interest in high-end materials and tailored storage solutions is also rising.
 The most notable changes are taking place in kitchens. As more consumers choose mid- to high-priced materials such as engineered stone, ceramic, and stainless steel instead of standard artificial-stone countertops, Hanssem's sales of mid- to high-priced countertops rose 40.2% year on year in the first half of this year.
 Kitchen doors and storage configurations are changing as well. Premium surface materials that highlight the texture of natural veneer are drawing attention instead of single-color doors. Demand is also growing for designs that reflect individual lifestyles, such as cabinets that conceal appliances and tall storage units. Combined second-quarter sales of Hanssem's premium Kitchenbach line and its mid- to high-priced Euro Kitchen range rose 40% year on year.
 Products designed to meet demand for partial renovations are also emerging. Hansol HomeDeco recently revamped Hansol Storyboard X Film Vol. 10, which combines furniture materials with interior film. Interior film can be applied to areas around furniture, walls, and doors, allowing consumers to change the atmosphere of a space without replacing all the furniture.
 "Demand is expanding for customized, premium interiors that reflect people's tastes and lifestyles in their homes," an industry official said. "Companies are also developing customized storage modules and technologies to reduce the inconvenience of carrying out renovations while residents remain in the home."

[email protected] Kim Hyun-cheol Reporter