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Published: 12/15/2013 - Updated: 1 minute ago

SACRAMENTO BEE

SACRAMENTO With a baby on the way earlier this year, Jeff and Meredith Schaff decided they needed more room than their small three-bedroom, one-bath starter home could provide.

We definitely knew we needed a second bathroom, Mr. Schaff said.

But when they started looking at homes to buy at a time of tight inventory and sharply rising prices, they said it was tough finding anything in their price range that would fit their needs. Instead they decided to stay in Sacramentos Land Park neighborhood and add a second bath and walk-in closet and remodel the kitchen in their craftsman cottage.

They spent about $100,000, but they figured they saved $75,000 over the cost of a similarly appointed resale home and got just what they wanted.

The Schaffs are among homeowners who, faced with the prospect of moving or taking on major renovations, are opting to remodel.

Growing confidence in the economy, rising home equity, and low interest rates are among the factors giving renewed energy to the remodeling industry, which went slack during the downturn, builders said.

Were really happy to see these large investments come back,said Mark Abrahams of Abrahams Construction, a residential remodeling specialist in Land Park who renovated the Schaffs home.

The National Association of the Remodeling Industry, a trade association representing 7,000 construction firms, said its most recent quarterly survey of builders showed growing business from homeowners based on improving home prices, economic growth, and more certainty about the future. But the main driver of growth is homeowners who are undertaking renovations they put off in the recession, the survey suggested.

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Remodeling industry picking up