As Americans are becoming more confident in the economy, the latest numbers show that home construction and remodeling are on the rise—good news, indeed, for the residential construction sector. Families are finally seeing more money in their pockets, and baby boomers who are retiring now have the time and money to invest in their homes.
We’ve been seeing this increase all through September and October. In fact, according to a recent article in the New York Times, “building permits for construction [in August] hit a five-year high, pointing to resilience in the housing market recovery.”
The article also goes on to say that “confidence among builders of single-family houses remained near an eight-year high in September, with builders upbeat about prospective buyer traffic.” In fact, for each single-family home that’s built, “three jobs that last for a year are created.” It’s a win/win.
Personally, we are seeing this significantly. Our business was about 24% ahead in September, and through the end of August, we saw a 13% increase in the kitchen and bath business. We’ve experienced an increase in sales—proof, for us, that rebuilding and remodeling are increasing.
One of the specific trends we are seeing is that many people are doing small remodels—one room at a time—which is more cost effective, yet still a great way to add aesthetic and economic value to their homes. We are now also seeing another trend: Americans are getting ready for the holiday season, and are preparing for remodels before the holidays arrive. Even more specifically, kitchen and bath trends include undermount sinks and the use of tile.
Coinciding with the increasing construction is a trend in kitchen, bath, and appliance showrooms; many are offering SPIFF programs, sales incentives for showroom associates that simultaneously drive sales while offering better deals for homeowners.
With the economy rising, incentive programs abounding, and the holidays fast approaching, now is a great time to tackle those home improvement projects you’ve been dreaming of.
P.S.: We can’t wait to see what this will mean for the Kitchen & Bath Industry Show in February!