There have been two big trends in construction this year: The re-emergence of the single-family market, and a boom in the remodeling sector.
In this article, we’ll take a look at what the data tells us about remodeling, why experts are predicting a spike in the remodeling sector, and tell you exactly what markets are going to be re-modeling and how you can take advantage of this trend to build your business.
Big Data
One of the most transformative technologies of the last few years has been the data revolution also known as big data. Big data generally includes anything which involves collecting massive amounts or data of information in order to draw correlations and causations to improve efficiency.
One of the major benefits of big data is that it allows us to ask certain questions like “Which sectors are going to see the most growth in the next 2-3 years?” and get answers based on analyzing the data.
A Spike in Remodeling
One of the things that the data has showed us is that there is an increase in the desire to invest in one’s home. In fact, the data supports the idea that growth in home improvement is outpacing the increases in every other area of spending.
According to Mike Horn, the vice president of Lowe’s Proservices, “The number of homeowners indicating that their home improvement spending increased has doubled since 2012.”
Which Markets Are Remodeling?
While the data supports an increase in the amount of spending on remodeling, it is not supported across the entire real estate market. In fact, right now, the majority of the growth in re-modeling is being seen in the luxury market. Many remodelers theorize that people in the middle and lower markets are still struggling to pay for their homes and cannot yet afford to start making improvements.
That doesn’t mean that there is no reason to be optimistic that the middle and lower markets will not pick up, as a rising tide lifts all boats, and some of the money being spent on remodeling may trickle down to the middle and lower markets as housing prices continue to rise.
In this article, we looked at one of the biggest trends happening in construction right now: Remodeling.
So how do you take advantage of this trend in luxury remodeling?
Here are two easy ways:
1. Re-connect with old clients with luxury homes.
Try sending a gift or giving them a call to see how everything is going, before gradually asking if they are considering remodeling.
2. Specifically advertise to those markets.
With online marketing and PPC advertising, you can use demographics to send your ads to people who are more likely to be considering home remodels.
Madden Industrial Craftsmen strives to be the leading industrial staffing company in the Northwest by staying on the cutting edge of all construction developments. If you are in need of any construction staffing solution, contact our great team today!
