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10 | Kitchen & Bath Design News | October 2015 Consumer Buying Trends { Demographics & buying patterns for the home } Des Plaines, IL — Increasing consum- er confdence coupled with recent job growth in many key markets is resulting in a sharp uptick in both current activity and future expectations among the na- tion's residential remodelers, who also believe that homeowners are poised to spend on bigger projects. That's the key fnding of the latest "Remodeling Business Pulse" survey, conducted among select members by the National Association of the Remodel- ing Industry, many of whom are heavily involved in kitchens and baths. The quarterly surveys are aimed at gleaning insights into specifc business issues, as well as gauging both the current health and near-term outlook of the residential remodeling industry. Monitored are cur- rent and anticipated levels of inquires, requests for bids, conversion to jobs and value of jobs sold. According to t he Des Pla ines, IL-based NARI, the fndings of its sec- ond-quarter 2015 survey, conducted in late-June, "point to a strong environment for remodeling projects" – considered a ref lection of improving consumer confidence ( see related Barometers, Page 8 ). Specifcally, among surveyed NARI remodelers: » » Inquiries: The number of inquiries was up 2.9% compared to the previous quarter. » » Requests: Requests for bids were up 1.3%. » » Conversion: Conversion of bids to jobs was up 0.9% » » Value: The value of jobs sold was up 4.7%. The latter metric, NARI noted, hit an all-time high in the most recent survey – "a sign that bigger-dollar projects are becoming more common." "The results of the second-quarter sur- vey mirror well what I see in my business," said David Merrick, chairman of NARI's Strategic Planning & Research Committee. "The remodeling environment continues to improve. While we're not back to 2008, we continue to get stronger and I like that it's happening in very small increments. "With banks being careful on what loans they approve and general customer caution, we are seeing a very sustainable rate of growth," Merrick observed. Looking at expectations for business three months into the third quarter, a majority (68%) of surveyed remodelers said they foresee some level of growth, while only 8% report they are anticipat- ing declines. Growth drivers, according to NARI, continue to be led by "postponed projects" followed by "more certainty about the fu- ture." Other growth factors include income growth, home-price appreciation and low interest rates (see related graph, above) . "Consumers are feeling better about where the economy is going, but they remain somewhat cautious," said Tom O'Grady, president of O'Grady Builders, in Drexel Hill, PA. "Having short-term liquid assets to spend appears to be a driver of when homeowners actually will start a remodeling project." O'Grady, citing fellow NARI remod- elers, also said he is witnessing a large amount of interest among consumers based on pent-up demand. "We see this pent-up demand driving the market for the foreseeable future," O'Grady commented. "Homeowners are doing remodeling today for their person- al enjoyment or meeting specifc needs. While there was a time when decisions were driven by adding resale value, that mindset is largely gone now." Uptick in Confdence Seen Among Factors Sparking Remodeling MAJOR GROWTH DRIVERS FOR RESIDENTIAL REMODELING Need to Do Projects Previously Postponed 77% More Certainty About the Future 51% Improving Home Prices 50% Economic (Income) Growth 49% Low Interest Rates 39% Stock Market Improvement 35% Improving Employment 33% Company Marketing/Sales Efforts 33% Loans Are Easier to Obtain 19% Weather-Damage-Related Projects 9% With consumer confdence growing and the labor market continuing to expand, homeowners are increasingly spending on remodeling projects, including kitchens and baths. Among the major reasons for the new wave of spending, as refected in this graph, are a need to do projects that were previously postponed and a growing certainty about the future. Source: National Association of the Remodeling Industry (NARI) SALES GROUP SALES DIRECTOR AND MIDWEST MANAGER Paul DeGrandis (847) 920-9510 Paul@SOLAbrands.com EAST/SOUTHEAST Joanne Naylor (201) 891-9170 Joanne@SOLAbrands.com Beth Emerich (781) 710-4745 EmerichB@SOLAbrands.com WEST/SOUTHWEST Reed Fry (949) 223-1088 Reed@fry-comm.com PRODUCT & LITERATURE SHOWCASE/CLASSIFIED ADS Mike Serino (630) 699-2004 Mike@SOLAbrands.com EDITORIAL Janice Anne Costa, Editor (516) 605-1426 Janice@SOLAbrands.com Anita Shaw, Managing Editor (631) 581-2029 Anita@SOLAbrands.com PUBLISHING SOLA Group, Inc. 724 12th St., Suite 1W Wilmette, IL 60091 (847) 920-9510 Paul DeGrandis, Publisher Paul@SOLAbrands.com Eliot Sefrin, Publisher Emeritus Eliot@SOLAbrands.com SUBSCRIPTIONS Kitchen & Bath Design News Circulation Dept. P.O. Box 3007 Northbrook, IL 60065-3007 (866) 932-5904 circ.kbdn@omeda.com MAILING LIST RENTAL Elizabeth Jackson (847) 492-1350 ext. 18 ejackson@meritdirect.com KitchenBathDesign.com ®