The remodeling industry has been battling supply chain disruptions for more than a year now—yet if last week’s release of the National Association of the Remodeling Industry’s 2022 Remodeling Impact Report is correct, many of those challenges here in the U.S. are being overcome. The area homeowners who are Southeast Michigan remodeling customers are part of a nationwide increase in remodeling activity—reflected in the $420,000,000,000 (those are billions) spent on home remodeling ventures last year.
Per the Report, those billions have also fostered a measurable increase in happiness, demonstrated by high “Joy Scores.” (More about “Joy Scores” later, along with a detail on the monetary dimension that correlates with high scores).
The Report documents one to-be-expected result of the COVID-19 pandemic: a renewed focus on the home environment due to enforced (and later, voluntary) time spent at home. Although it is true that 83% of consumers admitted that they would have remodeled regardless of the pandemic, 86% said that remodeling one area (probably a work area) “then inspired them to remodel other areas of the house,” which more than compensated for the supply chain woes. After making one change, homeowners often decided they needed to reconfigure how they use their homes in general. Maximizing space seems to have become a national preoccupation.
The happiness outcome for individual remodeling projects was quantified by the Joy Scoring system, with a “10” considered to be “a perfect Joy Score.” The top result was for “Hardwood floor refinishing,” which drew a perfect 10. When quizzed about why this particular project created chart-topping happiness, 64% cited an increased sense of enjoyment when they are at home “now that their hardwood flooring is installed.” Another 64% said that just thinking about the completed project gives them a major sense of accomplishment.
But without being too mercenary about it, you have to consider that this might also be where a monetary dimension comes into play (and where Southeast Michigan real estate results may be affected). When sellers’ remodeling efforts are geared to maximizing their property’s resale value, naturally, they hope the project’s cost will be reflected in its final sale figure. And Hardwood floor refinishing’s RPC (Recovered Project Cost) percentage came in at a chart-topping 147%. Homeowner happiness would certainly result from that!
If you are considering renovation projects, I hope you’ll give me a call to discuss the latest market impacts. I’ll be happy to share recent data—as always, without obligation.
