Qualified Remodeler Magazine

MAR 2019

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

Issue link: https://qualifiedremodeler.epubxp.com/i/1090915

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Page 6 of 70

Shifting Gears: Here Come the Millennials Patrick L. O'Toole levels of house-price gains and slower gains in home equity. In addition, we are seeing the long-awaited emergence of a new pro- fessional remodeling client: the millennial. They have been a long time coming. Leading-edge millennials, born roughly between 1981 and 2000, should be well into their home buying and remodeling years, but due to high levels of debt and other factors, they are just getting started. The reason mil- lennials get so much attention is because at 83 million strong they, like the baby boom- ers before them (who once numbered 78 million), have an outsized influence on just about every aspect of American life. They are not quite true digital natives, but they are very adept and comfortable making big purchases online— from cars to vacations and, yes, remodels. Some of you who are reading this are lucky enough to be attending our TOP 500 LIVE! conference, which is headlined by a true millennial expert, Scott Hess. You will also hear from 32-year-old Jeff Gear, a western Illinois remodeler who is generat- ing most of his leads for new business from advertising on Facebook and Instagram. The big news is that a big percentage of his clients are buying home improvements online. In many cases, Gear says, the first time they meet in person is the day of installation. The influence of millennials on the remodeling market has taken hold. Remodelers with a long-term focus on the business are making plans around this cohort. SINCE THE LATE 1960s, baby boomers have seemingly dominated every aspect of American life. They were the free spirits who flocked to Woodstock, then cut their hair, got a MBA and morphed into young, urban professionals. That progression took them from Ford Pintos in the early '70s to BMWs in the '80s. The same goes for the housing market. Today baby boomers—now in retirement or fast approaching it—are aging in place, remodeling second homes and downsizing to a place in Arizona or the Carolinas. Born between 1946 and 1964, baby boom- ers still dominate the re- modeling market. They have the money, the wealth and the means for all of the discretionary upgrades that have been driving the remodeling market in recent years. Now comes an in- flection point in the remodeling market, say the very smart folks at John Burns Real Estate Consulting (JBREC), who have been providing analysis and fore- casting of remodeling in recent years. AƁer a 10-year expansion of the economy, we are now contemplating a natural business cycle in the coming years and trying best to gauge the implications for remodelers. The good news is everywhere, but that does not mean the market is not shiƁing. This year, into 2020 and beyond, JBREC forecasters see a slower growing remodel- ing market: 3 percent annually versus the 10 percent the market is said to have achieved in 2018. A big reason for the slower growth is a shiƁ in remodeling project sizes. This "mix-shiƁ," as JBREC calls it, is due to a number of factors including lower WE ARE SEEING THE LONG-AWAITED EMERGENCE OF A NEW PROFESSIONAL REMODELING CLIENT: THE MILLENNIAL. EDITORIAL DIRECTOR'S NOTE 6 March 2019 QualifiedRemodeler.com A preferred publication of the National Association of the Remodeling Industry and the NAHB Remodelers Published by SOLA Group, Inc. 1880 Oak Ave., Suite 350 Evanston, IL 60201 847.4 40.3000 Publisher and Patrick L. O'Toole Editorial Director Patrick@SOLAbrands.com Ext. 103 Senior Editor Kyle Clapham Kyle@SOLAbrands.com Ext. 107 Managing Editor Kacey Larsen Kacey@SOLAbrands.com Ext. 105 Contributing Editor Chuck Ross Audience Development Mike Serino Mike@SOLAbrands.com Creative & Production Director Tracy Hegg Tracy@SOLAbrands.com Senior Graphic Designer Erika Nygaard Erika@SOLAbrands.com Editorial Advisory Board Stephen Gidley, GMB, CAPS, CGP, CGB, CGR, CPRC, CR Jeffrey Holloway, CKD, CBD, CGR Michael Nagel, CGR, CAPS Scott R. Sevon, CGR, CAPS, GMB, CGP, GMR Donna Shirey, CGR, CAPS, CGP Kenneth P. Skowronski, CR Publisher/ Paul DeGrandis West Sales Manager Paul@SOLAbrands.com Ext. 100 Midwest Sales Manager Zach Stenberg Zach@SOLAbrands.com Ext. 115 Midwest Sales Manager David Ayala David@SOLAbrands.com Ext. 119 East Sales Manager Dan Miklosz DanM@SOLAbrands.com Ext. 118 Southeast Sales Manager Dan Agostinacchio Dan@SOLAbrands.com Ext. 101 National Automotive Sales Tom Lutzke TLutzke@ACBusinessMedia.com Product Showcase Mike Serino Mike@SOLAbrands.com Ext. 102 Digital Programs Manager Tim Steingraber Tim@SOLAbrands.com Ext. 106 Projects Manager Heidi Riedl Heidi@SOLAbrands.com Ext. 111 Subscriptions QR Circulation Dept. (866) 932-5904 QualifiedRemodeler@omeda.com

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