Home remodeling: It’s been happening long before Angie published her list.
In fact, in the 1st century B.C., the writer Vitruvius credited Sergius Orata for inventing the hypocaust, a radiant heating system used in villas of wealthy citizens of the Roman Empire. History says Orata would buy villas, add spas and heated floors, and then “flip” those villas to earn a profit. This all sounds like a fantastic HGTV show: Flip My Roman Villa.
Fast forward 2,000-plus years. People are still renovating homes (though they may not be adding the hypocaust). As design and living trends shift, homeowners decide to change elements of their home. These shifting trends translate to evolving customer expectations for contractors that ultimately impact the marketplace. What do contemporary preferences mean for today’s home improvement professional?
We’ve discovered a few developments in the kitchen remodeling niche that are likely to impact market growth for contractors this year:
- Increased demand for professional work: Kitchen renovations are becoming increasingly expensive. And, just about nine out of every ten households (87 percent) are enlisting the help of hired professionals. This data is almost identical to that of 2015, suggesting some market stability for home improvement professionals seeking new projects.
- Some kitchen renovation projects can get very pricey: According to the 2016 U.S. Houzz Kitchen Trends study, nearly a third of renovating homeowners are spending $25,000 – $50,000 on kitchen renovations, while another third are spending more than $50,000. Homeowners with enough disposable income can afford these big-budget remodels, but a lot of homeowners are looking for a more feasible solution to make their kitchen modern.
- There is a growing demand for budget-friendly remodels: Just because the price for kitchen renovations is on the rise in some cases doesn’t mean consumers want it that way. The demand is there for lower-cost solutions: We hear it everyday from homeowners who have $25,000 or so to spend and want the kitchen of their dreams. In our experience at kitchenCRATE, kitchen renovations can typically be completed in the $15,000 to $30,000 range. This is because we’ve streamlined operations and have a system in place that allows us to provide a high-value remodel to our customers. As a plug-and-play module, kitchenCRATE allows contractors to answer customer’s growing desire for personalized work while remaining on-budget. This offering should resonate with the public as a rise in spend shapes new expectations of value proposition.
- Done the right way, modernizing a kitchen is one of the most enjoyable projects for homeowners to complete: In NARI’s “2015 Remodeling Impact Report,” 90 percent of homeowners surveyed said they have a greater desire to be home since completing their project. Since kitchens serve many purposes – they’re places where people cook and eat, socialize and do work – renovations of this space have become increasingly important. According to Houzz, homeowners’ remodeled kitchens are including dining tables, TVs, workspaces and built-in stations for coffee and tea. Design elements are transforming, as well, as open plans and outdoor setups grow in popularity.
By aligning with a home improvement franchise like CRATE, contractors become part of a network that keeps a pulse on market trends. Moreover, our franchise support team is committed to testing and perfecting new techniques at the corporate level before sharing with franchisees for optimal impact.
Interested in learning more about what it means to join CRATE’s extensive home improvement network? We’d love to talk with you about a CRATE Franchise in your location. Click here to download our complete CRATE Information Guide, or click here to schedule a phone call with me at a time of your choosing.
Scott Monday is Co-founder + CEO of CRATE Franchise Systems, the franchisor of the kitchenCRATE & bathCRATE remodel products. You can follow him on Linked-In or email him at scott[at]cratefranchisesystems[dot]com.