K&B Showrooms: Take Advantage of Renovation Market Uptick

Updated: Sep 11, 2019

Keeping an eye on renovation trends is a key way for showrooms to anticipate client needs. It is a major part of the marketing research, especially for showrooms serving different market segments, from new homeowners to seniors looking to age-in-place.

There are so many studies out there, it can be hard to keep track. We looked at the major research put together the information you need to keep ahead of the game for the rest of 2019 and into 2020.

People are renovating

The good news is that the home improvement market is steady for the third year in a row. While new home building has hit a low point, people have invested nearly $425 billion into renovating owned and rented homes in 2017.

With more and more people choosing to age in place and high building costs leading to fewer new home, the remodeling industry and its partners will play a major role in helping people stay secure and comfortable.

And they’re renovating older homes

The remodel market will remain strong, considering that around 55 million homes (40% of the country’s home) are at least 50 years old and in need of some TLC. Half of this remodel market is driven by the 55+ market segment.

The other half of the remodel market can be attributed to first-time homeowners, many of whom are around the age of 30 or older. Due to the state of the housing market, which has seen a slowdown in new-home construction, older homes are more readily available and more affordable than brand-new homes.

Of course, these older homes are in need of everything from minor upgrades to full-scale renovations. New owners in the millennial demographic enjoy making changes that suit their tastes, often taking on projects themselves.

What are they spending?

According to Houzz, the average renovation investment is $15,000. Spenders in the top 10% put out an average of $80,000. In 2019 homeowners plan to spend, on average, $10,000 for renovations. Note that there was a rise in homeowners who invest less than $5,000; they now account for 19% of renovating homeowners.

Why are they renovating?

One study reveals that the majority of renovations were sparked by two reasons: the homeowner wants to stay in the same home or they want to personalize the home to their tastes.

Other reasons include:

  • It is cheaper to renovate than to move

  • Renovating improves resale value of the house

  • Changes in family situation (in-law suites, new baby, aging-in-place)

Who’s buying?

Baby boomers are investing in aging-in-place improvements, as more and more choose to stay at home rather than move into retirement communities or facilities.