Industry reports show that things are looking up for the home renovations market. What's fueling this growth? Many homeowners are starting to invest in energy-saving renovations, particularly in the attic and kitchen.

The National Association of Home Builders (NAHB) Remodeling Market Index (RMI) has been above 50 for the past six consecutive quarters. It reached a high of 57 in the third quarter of 2014, showing definite signs for increasing market activity and an upward curve for the future.

With more homeowners undertaking renovations projects, the RMI is set to rise up and evenly match the slow and steady recovery of the housing industry. Data from the number of bids made, projects in the pipeline and new proposals were collated and reviewed to indicate the RMI and market curves.

But the real story is not just renovations but smart home renovations. More modern homeowners are waking up to the fact that their homes are not as energy efficient as the new constructions are. They figure if they don't do anything about it now, they might find it hard to sell their houses when they want to — not to mention facing rising electricity bills and energy consumption.

So it's not hard to see how renovation trends have changed themselves, with specific areas of the home demanding more attention than before.

One such place is the attic, which is responsible for almost 25 percent of energy loss in a home, according to the U.S. Environmental Protection Agency (EPA). Even when you adjust the thermostat, you may find more hot or cool air than what you want. This happens due to the massive air leakage that occurs through the gaps and cracks in the attic.

The latest smart home renovation investments will ensure that this energy loss is curbed effectively. Some of the key methods in this regard include:

  • Wrapping the house in polyolefin plastic house wrap can minimize the air leakage
  • Having the home professionally caulked and sealed
  • Having whole-house fans installed to distribute the air within effectively.
  • Using high-performance methods like spray-foam insulation, which can reduce heating and cooling costs by up to 50 percent.

Another method that is becoming quite popular is "smart" thermostat installation. These use Wi-Fi to set alerts for heating or cooling systems so homeowners can adjust temperatures accordingly, and even remotely. Advanced systems can even study user habits or sense human presence to automatically adjust temperature settings.

Smart renovations are making way for a better resale value, but that's not all. Homeowners want these done to modernize their homes and make them more comfortable for their own use as well.

Apart from the attic, the kitchen is another area that consumes a lot of energy. Since the kitchen makes for a large portion of any renovation project, it makes sense to do it right. Opting for a smart kitchen would include energy-efficient appliances like dishwasher, microwave, refrigerator, oven and even coffeemakers if it fits in the budget. Updating the plumbing will ensure better water usage and combine with other renovation efforts to show a big difference in your monthly utility bills.

The best way for many homeowners to begin is to get an energy audit done. This will check the existing infrastructure, windows and doors, air ducts and insulation, heating and cooling system. Make sure that all new products that you choose from your smart home have the Energy Star stamp. External renovations include new windows and a quality roof, a windbreak with strategically planted trees and shrubs to protect your house from the elements.

Smart renovation is going to be expensive since these appliances are state of the art, but with careful planning homeowners can reap the benefits sooner than later. A recent article by Money magazine gives a percentage break down for each room investment. It's definitely worth taking a look at.