The remodeling market is on a winning streak! For the 17th consecutive quarter, the growth rate for remodeling activity has risen nationwide, according to Metrostudy’s Residential Remodeling Index (RRI). In the last three months, remodeling activity increased almost 5 percent compared with the same period last year, indicating that the U.S. housing market has finally bounced back.
“The remodeling market continues to benefit from job growth, improvements to wages and a hot housing market,” said Mark Boud, Chief Economist at Metrostudy, in a statement. “In several housing markets across the country, home prices have now surpassed the peak levels of last decade. Higher prices are bringing more homes to be listed on the market, spurring remodeling before and after a sale, but on the other side, increasing affordability issues are also convincing more people to stay put and invest in upgrading their current residence.”
Whether people are buying, selling or staying put, it’s clear that remodeling is taking place. So what does this mean for trade professionals and showroom dealers? First off, it means more business. As homeowners work to tackle their remodeling projects, they’ll need your help. Whether they need materials, installation or both, trade pros have a big opportunity to earn their business. In doing so, having a wide variety of options will be vital.
In particular, offering a range of products for kitchens and bathrooms will be important because these are the most popular rooms for remodeling. Metrostudy’s Boud explains that the majority of current remodeling projects are taking place in these rooms because they offer the greatest return on investment.
When expanding the range of products you have available in order to meet your customers’ needs, you should be sure to offer radiant heating solutions. Floor heating has been shown to add value to a home, which is exactly what your customers are trying to do.
The bathroom is the most popular room for in-floor heating, but the kitchen takes the second spot. Electric floor heating can be installed under tile, stone, hardwood, laminate and more, so if your customer wants to update the flooring in their home, be sure to tell them about radiant heating’s value proposition! It adds value to the home and is inexpensive to operate. Plus, it’s a practical way to heat a room since it warms the people and objects in a room instead of just the air.
For those buying a new home or staying in their existing home, it’s important to note that radiant heating also adds everyday comfort for your customers. It’s an investment that they’ll get to feel and appreciate firsthand every day.
Plus, you have the opportunity to boost your sale with less-expensive add-on items, such as a towel warmer or mirror defogger. By offering these radiant heating solutions, you’ll be able to boost your profits and give your customers the return on investment and daily comfort they want.
Metrostudy’s RRI expects the remodeling market to continue to grow at about 5 percent for the rest of 2016 and slow slightly to 4 percent growth in 2017.
“We are expecting steady expansion for the remodeling market over the next few years, as the trend of investing in current homes increases, especially once mortgage rates lift-off from current lows,” Boud said.
As remodeling activity continues to grow, make sure you’re leveraging the right products to suit your customers and your bottom line!