Qualified Remodeler Magazine

FEB 2017

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.

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their parents. Significantly, they are also using less credit than their parents. ey are most like the 1930s Savers in their habits. But only time will tell if they can achieve the same eco- nomic benefits enjoyed by the Savers cohort. 2000-09: GLOBALS Forty-one million were born in the U.S. in the 2000s. By 2025, they will be the second largest cohort, numbering 43.6 million, in- cluding immigrants to the U.S. Not much can be known about this group today, but they are called Globals because of the high- ly multicultural, interconnected world they occupy. is generation will be saddled with government debt and lower levels of retire- ment contributions. '50s AND '80s DOMINATE Big Shifts Ahead shows that studying de- cade-size demographic groups is an effective way to gain clear trend insights. With larger generational cohorts like Baby Boomers and Millennials, the age disparity tends to muddy the picture rather than elucidate it. In 2017, the most-watched cohorts, for their potential remodeling activity, should be Baby Boomers and Millennials. eir size dictates their importance. And in the coming years, it will shift from a Boomer market to a Millennial market. at change is happening now. | 0 5 00,000 1,000,000 1,500,000 2 ,000,000 2 ,500,000 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015P 2017P 2019P 2021P 2 023P 2 025P Source: John Burns Real Estate Consulting, LLC calculations of US Census Bureau Population Estimates and 2014 National Projections A N N U A L G R O W T H Y E A R Source: John Burns Real Estate Consulting, LLC (Data: Dec-16, Pub: Jan-17) $71 B $61 B $45 B $34 B $20 B $20 B $19 B $18 B $8 B $8 B $0 $20 $40 $60 $80 Northeast Midwest Southeast Texas Southern California Southwest Northwest Northern California Region Southern Florida Northern Florida Northeast Midwest Southeast Tex as Southern California Southwest Northwest Northern California Region Southern Florida Northern Florida 2.7% 3.5% 4.4% 3.9% 5.8% 7.6% 6.0% 5.0% 7.5% 5.6% 0% 2% 4% 6% 8% 10% B I L L I O N S Y O Y % C H A N G E S ource: John Burns Real Estate Consulting, LLC ( Data: Dec-16, Pub: Jan-17) Privacy between neighbors Entertainment /recreation Pets Gardening Children's Play Area Connection with the outdoors 0% 20% 40% 60% 79% 53% 53% 46% 34% 29% 80% Dollars spent remodeling (left) is contrasted with year-over-year percentage growth (right). A listing of a few of the top drivers for outdoor living among those born in the 1950s. The retirement surge will force the "labor pool" to grow much more slowly over the next decade. HUGE REGIONAL DIFFERENCES IN REMODELING GROWTH TO OCCUR IN 2017 2017P Total Remodel Spending (Owner and Rental) OUTDOOR SPACE IMPORTANCE TO 1950s INNOVATORS Percentage who selected each option RETIREMENT WILL DRAMATICALLY SLOW JOB CREATION Growth of U.S. Resident Population Aged 20–64 QualifiedRemodeler.com QR February 2017 37

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