Remodeling Spending Up Sharply, Houzz Survey Finds

PALO ALTO, CA — Home renovation spending has grown 15% in the past year, with kitchens remaining the most popular remodeling projects undertaken by U.S. homeowners, according to the tenth annual “Houzz & Home” survey.

The annual survey of more than 70,000 registered users of Houzz found that while median spending on kitchen remodeling has been flat for the past three years, investment on major remodels of kitchens jumped 14% in 2020 compared to the prior year. The survey, fielded this spring, also found that the renovation market will continue to be robust in 2021, with 56% of surveyed homeowners planning to renovate this year, the highest share since 2017.

“While the pandemic caused initial concern for the residential renovation industry, many homeowners finally had the time and financial means to move forward with long-awaited projects in the past year,” said Marine Sargsyan, senior economist for the Palo Alto, CA-based online platform.

“This pent-up demand, along with other long-standing market fundamentals such as accumulated equity, will empower homeowners to continue investing in their current homes rather than face skyrocketing prices in the housing market,” Sargsyan added.

With homeowners largely homebound due to the COVID-19 pandemic, the share who reported that they had wanted to pursue a home renovation and finally had the time increased by 6% in 2020 (44% compared 38% in 2019) and remains the top renovation trigger. Wanting to (remodel) all along and finally having the financial means also rose compared to the prior year, Houzz said, adding that a quarter of surveyed homeowners claimed to have renovated instead of moving because it was the more affordable option.

Other survey findings were as follows:

• While interior room remodels remain the most common projects (68%), outdoor areas have increased in popularity, with 2020 showing a jump of six percentage points (57%) among renovating homeowners.

• While Baby Boomers (ages 55-74) have historically led in both renovation activity and spending, Gen Xers (ages 40-54) narrowed the gap in 2020. Gen Xers now account for 32% of renovating homeowners (up from 30% in 2019), Houzz said. Millennials (ages 25-39) represented 12% of renovating homeowners.

• Homeowners are investing in smaller areas that may once have been considered a luxury but are now considered a necessity, Houzz noted. For example, demand for home office projects jumped four percentage points (14%) in 2020. Median spending on closet upgrades also saw an increase of 43%.

• Smart home technology purchases continue to rise in popularity. A larger share of renovating homeowners purchased smart technology products for their outdoor spaces than the previous year, including security cameras, light fixtures and speakers or sound systems.

 

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Designer Crafts Thoughtful Brand

Salisbury, NC — When Sara Lee started her design business in Salisbury, North Carolina, she knew just what to name it – SISU Home Designs. “SISU is personal to me,” says Lee. “It is a word used by my grandmother and mother of Finnish and Norwegian heritage. In one word, it embodies determination, potential, grit, freedom, courage, preparedness, strength, community and heart.” She adds, “In the business of design, there is inherent potential for what is possible.”

This inherent potential of design has, according to Lee, always been part of what drives her. “I always enjoyed setting up rooms and drawing house plans, even as a child,” she says. “Design school was a natural decision, and I specifically fell in love with kitchen and bath design. There is so much technicality, plus creativity. It’s problem-solving, communicating and wonderfully challenging.”

Branding a journey

Like most in the industry, Lee worked her way up from the bottom. “My first opportunity was with a large cabinet manufacturer, and I worked in marketing and sales, drawing plans for nationwide Lowe’s store displays and ‘The New American Home’ projects.” After a subsequent stint with a small dealer in order to gain more sales experience, she moved to Washington, DC to get a feel for the luxury market at a high-end showroom.

“A move to North Carolina in 2013 gave me new opportunities to serve a uniquely southern clientele,” she continues. “I thrived and felt a new confidence for what I could do for people and their spaces.”

When it came time to hang out her own shingle, Lee was careful to take her personal journey in the industry into account, working with an expert to create a cohesive narrative across all her digital channels.

“The branding [for SISU] was created by a lovely woman in London – we had much communication about who I am and what SISU represents,” she says. “The brand experience engages the senses and imagination through a visual narrative that is timeless, elegant and full of intentional detail – a visual identity that speaks with poetry and textural appeal to communicate inherent possibility and expertise.”

She adds, “Consistency is important. The brand carries over into social media and, I believe, sets a standard of credibility.” The Instagram presence of SISU in particular features a balance of crisp, beautifully staged project imagery, personal touches and anecdotes and graphics featuring the company’s sprouting plant-inspired logo.

New growth

Like the little sprout featured in SISU’s logo, Lee cultivates her client relationships carefully. “I get to know my clients through many meetings, calls and even texts,” she notes. “I have the privilege of going into people’s homes, and that requires trust, and I honor that. Our welcome packet actually goes over the entire process from beginning consultation to photoshoot day! It gives my clients a nice road map of what will happen over the course of the next few months.”

Looking ahead to the new year, Lee anticipates growth for her business. “Plans for 2022: I would love to hire some help and continue moving toward having a fantastic showroom.”

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Anticipation Builds for In-Person KBIS 2022

HACKETTSTOWN, NJ – As the year comes to a close, many in the kitchen and bath industry are looking ahead to the return of the Kitchen & Bath Industry, the largest North American event dedicated to this segment of the market. With safety protocols and procedures in place, professionals are celebrating a return to an in-person exhibit and educational forum, where they can learn, reconnect and recharge for a promising business future.

Once again scheduled to be part of Design & Construction Week with the International Builders Show, the Kitchen & Bath Industry Show is scheduled to be held February 8-10, 2022 at the Orange County Convention Center in Orlando, FL. KBIS and IBS, hosted by the National Kitchen & Bath Association and the National Association of Home Builders, respectively, are expected to feature over 800,000 net square feet of exhibit space and showcase more than 1,000 design and construction brands.

While the event is still several weeks away, Kitchen & Bath Design News is offering this sneak peek at just a few of the products that will be on display.

 

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