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/739287
In conducting a large survey of homeowners, the JBRC remodeling research team, led by Todd Tomalak, catego- rized the results into three groups: Recent Movers, who are within their first three years in a home; Coasters, those living in their homes for four to nine years; and Nesters, those with 10 plus years in a home. ese groupings, in turn, helped quantify the wide variation in types of proj- ects undertaken by homeowners depending on tenure in a home. Recent Movers spend 28 percent less on roofing than the average homeowner, while Coasters spend 14 percent more than the average homeowner. And where Recent Movers tend to invest is in kitchens, baths, decking and windows; siding is an activity favored only by Nesters. All of this may seem a bit granular for a discussion about an industrywide forecast, but it is not. is knowledge of both when and how people remodel in relation to their purchase of a home sheds light on remodeling in many ways. In particular, it quantifies the effect of today's slower-than-traditional mobility rates. According to Tomalak, the remodeling market is ex- periencing an unusual mix of conditions where exist- ing-home sales, which is 2 million units below peak, and thus mobility are both underperforming relative to other n updating its forecast of the remodeling market, which debuted one year ago, John Burns Real Estate Consulting ( JBRC), delved more deeply into two areas. First, they conducted an in-depth study of the timelines of how building activity plays out in order to show specifically when certain products are purchased — from foundation and framing at the onset to doors and trim near completion. Second, they surveyed 23,000 homeowners to learn more about how and when they spend on remodeling. Many of the resulting insights played a role in an updated forecast of the industry put out last month — one that sees remodeling entering a stronger, more bullish phase up 24 percent by the end of 2019. For example, purchasing time- lines associated with types of building activity demonstrated a long lag in multifamily remod- eling construction between the time work begins and the purchase of many types of building products. Orders for products tend to slacken long after demand wanes. is year, rental remodeling is slowing after having been the key engine of growth for the industry from 2010 to 2016. As a result, building product manufacturers may feel a related slowdown in Q4 this year. EXCLUSIVE New Forecast Signals Robust Growth An updated forecast from John Burns Real Estate Consulting suggests that remodeling will grow 24 percent by 2019, taking the market to $353.1 billion. By Patrick O'Toole, Editorial Director/Publisher I This knowledge of both when and how people remodel in relation to their purchase of a home sheds light on remodeling in many ways. SPECIAL REPORT: Industry Forecast 30 October 2016 QR QualifiedRemodeler.com