STRITE design + remodel has once again been ranked by the trade publication Qualified Remodeler as among the top 500 remodeling companies in the U.S. While this is a notable achievement in itself — especially considering that we operate in a much smaller market than most of the other companies in this prestigious ranking — the larger story behind this recognition is something worth sharing for what it reveals about our industry and the environment in which it currently operates.
To gain some insight into the dynamics of the Treasure Valley residential remodeling market, I turned to a veteran of both the upturns and downturns of our industry: STRITE’s president, Bob Mundy. I asked Bob to characterize and contrast the current remodeling environment with what was happening in our industry just a few years ago. Whether you are a homeowner who is contemplating a residential remodel, or simply a keen observer of our local economy, his perspective is worth noting.
If the remodeling business is a less volatile place to be since the bursting of the real estate bubble five or so years ago, some credit is due to an overall improvement in the regional economy. However, this explanation only goes so far. For one thing, while STRITE has seen its estimated revenue for 2013 improve by roughly 20 percent over the previous year, the pace of economic growth in the Treasure Valley has been far less robust.
From Bob’s perspective, the improvement STRITE has seen in the remodel market can be attributed to five factors that, while they may not constitute a “perfect storm” of business opportunity, at least point to a more sustainable environment in which to continue to do what we’ve been doing for the past 37 years. In no particular order, Bob Mundy characterizes these factors as follows.
Pent up demand — After a lot of fear and trepidation regarding their economic future, home owners are deciding to no longer put off their home improvement goals. “People are deciding to live their lives, and they want to genuinely add more value to their homes, and to their experience of their homes. Folks are just more positive about the future.”
An acceleration of new products and technologies — Not that many years ago, the pace of new products and technologies being introduced into the home improvement market was much slower than it is today. “We used to wait for five years to entertain new products in the market place. Now, the quality that is coming out is really exciting to both us and our clients, and we can move forward with much more confidence because of the improved quality of innovations in lighting, materials, colors — things that are really having an impact on peoples’ lifestyles.”
The role of the Internet — In a trend related to the one previously cited, the Internet is fueling an increased awareness of new product and design trends — especially through social media sites such as Facebook, HOUZZ, and Pinterest. “Thanks to the Internet, people are not only exposed to new ideas, but they are able to share them and create conversations around them that add to the ‘buzz’ taking place in our industry.”
The desire to update rather than move — Moving is no guarantee that people will be able to more closely align their lifestyle needs with their homes. This is especially true if they want to stay in the neighborhood where they currently live. In that regard, remodeling is an option that allows homeowners to have their cake and eat it too — or at least redecorate it. “Builders are hard pressed to respond to all the new design ideas that are out there today, so they tend to stick to more generic products and designs. Remodelers don’t face that constraint. More than ever, if you want your home to reflect the latest design and product innovations, remodeling is the best avenue.”
Adapting to lifestyle needs — As more people choose to invest in the long term livability of their homes, they are taking a more critical look at how they use their living space. “We’re seeing less of an interest in adding space through additions, and more of an interest in better using existing space through changes in layout. This is going to be an even more pronounced trend as the aging ‘boomer’ population increasingly looks at ‘aging in place’ as an option to retirement communities or assisted living situations.”
This last trend points to a broader and more fundamental factor that STRITE believes will contribute to a more sustainable growth in the remodeling business over the next decade: the growing interest in universal design. “While the new construction industry may continue to experience ups and downs along with the economy, the interest in adapting homes for changing lifestyle needs such as aging in place will be more significant as time goes by. People will always have an interest in updating the look of their homes, but improving the livability of their homes is a more fundamental investment in value that bodes well for our business.”
For some additional perspective on the Treasure Valley remodeling market, read our blog “The New Normal.”