In our Management Memos, we often like to share our perspective on what we’re seeing in the local remodeling market. Lately, one trend has clearly stood out: Homeowners are spending more on their remodeling projects.
To cite just one example from our historical data, our average kitchen project has gone up about 80% over the last five years. The increased spending is due both to larger project scope and homeowners choosing higher-end products.
What are the reasons for this trend? We think the local real estate market is a key factor.
Suppose a family wants a bigger and/or updated house. As they start looking around at real estate, they might struggle to find the right house in the right community at the right price. Considering the competitive real estate landscape in Greater Boston, this would be no surprise.
In this case, homeowners typically face two options: One, they could buy a home that doesn’t have everything they want, but is priced accordingly and could be remodeled before they move in. Two, they could keep their current home and examine remodeling options. Around here, there’s a good chance the home has appreciated in value and left them with considerable equity to apply toward a renovation and/or addition.
In either of these scenarios, the homeowners end up having major work done on the house. They’re taking down walls, ripping out bathrooms and kitchens, putting on large additions, making significant renovations to the exterior and more.
Many of these homeowners aren’t skimping on product selection. Those staying in their current home may have lived for 20 years with laminate countertops in the kitchen or beaten-up flooring on the second floor. Now they’re willing to spend what it takes to create the house they want to live in for the next 20 years.
Rising demand for remodeling services means that many general contractors are as busy as ever. If you have a smaller project, it might be tough to find a qualified remodeling firm that can take it on right now. If you have a larger project, there might be a long wait before the project commences.
No matter what the size of your project, Custom would be happy to speak with you. Once we learn a little bit about your project, we can give you a ballpark quote — and let you know when we might be available to work on it. If you like what you hear, we can continue the discussion when the time is right.