Understand the current home remodeling industry. As we take a closer look at residential renovations, we can all agree, it’s a GREAT time to invest in your home!
In 2020, most Americans spent an increased amount of time truly living in their homes. Living, working, playing all under one roof… subsequently more and more importance was put on the home to fulfill ALL their needs. An increased demand for home remodeling services was driven by the homeowner’s desire to not only ENJOY the home, but have it fit their many functional needs.
A perfect storm began. Even in the midst of so much uncertainty in 2020, remodelers kept working, and the clients kept calling. As an essential business, we did not slow down. Like many other industries, we just had to figure out how to safely adapt our business practices in response to the many hurdles we all were facing. During a global pandemic, when many industries were placing employees on furlough, the home remodeling industry was hiring.
In addition to the increased demand for home services, like remodeling, we now had another driving force of the renovation wave; the Real Estate market. As we entered into 2021, it was very clear to see that we are now in a “Seller’s Market”! This means the financial return on a renovation investment has probably never been more valuable. With limited home inventory and affordable financing options, home values have increased as the demand for homes has increased. Many homeowners have harnessed home equity to re-invest in home maintenance and updates. Others are taking advantage of low interest rates and combining the purchase and renovation cost of a new home into an affordable Renovation Loan option. Homeowners are experiencing first-hand how investing in the home will truly maintain and even increase the value of that home.
So, as thankful as we are to have an overwhelming increase in clients who truly see the value in a renovation, this increase in opportunity doesn’t come without new obstacles. As you can imagine, an increase in work comes with a strain on skilled laborers and trades, available materials, and even a strain on supporting industries such as municipal permitting and suppliers. Events happening around the nation such as a freeze in Texas that destroyed an inventory of products, fuel costs affecting shipping, manufacturing delays due to pandemic closures, and an overall demand for materials has caused some supply chain disruptions.
It’s important to understand the nature of the industry, so you can truly appreciate and set expectations when it comes to working with a renovation General Contractor. Now more than ever you should be focused on choosing a contractor that has longevity in the business. The contractor you choose should have great relationships with their vendors and trade workers, and should be transparent and realistic about pricing. A GC that offers Project Managers who not only oversee the daily project activities, but also monitor the rapidly changing material and scheduling demands, can be a huge added value to the success of the project.
At All-In Construction Services, we recognize that pricing plays a huge factor in whether or not a renovation is a feasible option for our clients. We want our clients to know that if they choose to invest in their home and hire All-In for their project, they will also be receiving our experience, responsiveness, and communication to help navigate them through this process.
Communication by the GC is extremely important, you rely on your GC to be your resource and the pro guiding you on your renovation journey. The General Contractor team should keep you educated and informed. Take a look at the info graphic below, communicating some key factors of the current industry.