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
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.