Today’s post spotlights a few significant trends and opportunities for your kitchen remodeling business in 2018.
Rising demand for big-ticket remodels creates major opportunities in 2018
Metrostudy’s latest Residential Remodeling Index (RRI) statistics promise a strong 2018 for kitchen remodeling business owners. Their research found that big-ticket remodeling activities around the country are increasing faster than previously thought. In fact, numbers are higher than they’ve been since pre-Recessionary periods.
While prior estimates figured remodeling industry RRI growth at 4.7%, activity spikes have bumped this number up to 5.2%. Accordingly, Metrostudy predicts roughly 12.57-million kitchen remodeling projects over $1000 taking place in 2018, up from 11.96-million last year.
These numbers translate to roughly $171.1-billion spent on kitchen remodeling projects this year.
Not many industries boast this kind of robust demand.
Millennial homeowners are increasing demand for moderately-priced remodels in 2018
For awhile, Millennials were being referred to as the “basement dweller” generation, as members of this age group were settling into mom and dad’s house later in life than their parents.
But even those who got out of their family homes tended to rent rather than buy their living spaces. In fact, home ownership rates bottomed out at just over 62% in the second quarter of 2016. That’s the lowest rate recorded since 1965!
Explanations for these lower rates of Millennial home ownership varied greatly. Some blamed rising mortgage rates and shifting job markets; others felt Millennials simply had some fundamental aversion to home ownership.
Broadly speaking, lower home ownership rates lead to fewer expensive remodels, which isn’t great for the kitchen remodeling business. But it wasn’t all bad; this same period saw a significant uptick in the number of clients interested in low-cost, low-commitment services that could still transform their living spaces, like interior design tweaks, cabinet refacing, and storage solutions. Businesses like Kitchen Solvers with the flexibility and foresight to diversify revenue streams to target different consumer tiers made out like bandits.
But now Millennial homeowners are settling down in record number. Though still not at the level of the 2004 peak of 69.2%, Millennial home ownership has climbed to 64.2% in 2018. Sharp increases like these are extremely rare, but it makes sense given that enough time has passed for Millennials to settle into career work and consider putting down some roots.
With Millennial homeowners appearing in greater numbers than ever, expect the demand for moderately-priced remodels to skyrocket. Young homeowners will be looking to add their own stylistic touches and start fixing their fixer-uppers, but won’t have the kind of liquidity to play with that Baby Boomers and Gen-X can afford.
People are relying on internet resources to research and book kitchen remodeling businesses in 2018
Internet search, reviews, and bookings are being trusted more than any other channels in 2018, which means your kitchen remodeling business needs a strong web presence to stay competitive. Beyond a sleek and engaging website, that means a robust SEO campaign, paid advertising, and social media management, all of which need to be coordinated and rooted in concrete statistical analyses.
If you want to learn more about the kind of web presence and site that’s needed to run a successful kitchen remodeling business in 2018, or would simply like to explore our brand in greater detail, visit https://www.kitchensolversfranchise.com for info.Back