What Awaits the Remodeling Market Into 2023?

What Awaits the Remodeling Market Into 2023?

The current state of the new-home economy tends to lean toward the bleak, with falling housing starts and declining builder confidence. But the remodeling market may be feeling the challenges a bit less. Though spending slowdowns are happening or anticipated, various indicators point to homeowners investing in their current houses and continuing with project lists begun during the pandemic.

The Joint Center for Housing Studies of Harvard University (JCHS) is predicting a steady downturn in home improvement spending throughout the next year, Pro Remodeler reports, with year-over-year spending expected to grow just 6.5% in Q4 2023 versus an anticipated 16.1% growth in Q4 2022. Factors driving these expectations include a drop from unsustainable growth during the pandemic, higher interest rates, and higher prices for materials and labor.

Despite these contractions, reports from the field paint a picture of continued, if more measured, investment in the remodeling market, both DIY and professional.    

The U.S. Remodeler Index by John Burns Real Estate Consulting dropped from 65.7 in Q2 2022 to 62 in Q3, but remains above the index’s growth indicator line of 50. Among the report’s key takeaways, Qualified Remodeler said, is a 4.9-month average backlog among remodelers, with 56% of survey respondents having at least four months of in-progress or planned projects. Supply chain issues are improving, remodelers said, but most also said that customers are downgrading to stay on budget amid pricing concerns.

Lowe’s also conducted a survey of home improvement professionals. The Pro Pulse Survey found that pros remain optimistic despite challenges, and 73% of respondents expect to have more work next year than this year.

Homeowners Invest in Existing Houses

In a recent study of 4,000 homeowners by Houzz, only 1% of homeowners have canceled remodeling projects so far in 2022 and 23% plan to start a project in the next 12 months. “For many, conditions like limited choices of available homes and rising interest rates are driving them toward renovations and improving their current home, since the cost of moving into a house that fits their current needs has become so expensive,” said Marine Sargsyan, Houzz staff economist. “Moreover, more than half of the homeowners we surveyed have no intention of selling or moving out of their current residences in the next 20 years — or ever.”

Exterior updates and “bringing the outdoors in” were among the projects taking priority.

The Houzz study also found that 91% of homeowners planning remodels plan to hire a professional. Though the report didn’t indicate, this could be due to some DIYers reaching the end of their pandemic to-do list of items they can perform themselves.

With some positive indicators, it’s perhaps no surprise that both Lowe’s and The Home Depot are “faring better than expected,” according to CNBC. “Home Depot financial chief Richard McPhail pointed to an ‘improve in place’ mentality among current homeowners, who might have wanted to sell but changed their minds because they could no longer command top dollar,” the website reported.

That’s reflected in the NAHB’s recent forecasts, as well. “The growth rate for improvement spending will slow due to declines for existing home sales,” Robert Dietz, NAHB’s chief economist, told CNBC. “However, an aging housing stock, work-from-home trends, and a decline for household mobility all favor remodeling spending.”

Stop Selling. Start Solving Homeowners’ Pain Points.

For many of us, we’ve been programmed to sell a certain way: Hard selling, non-stop calls, high pressure. But the old methods are problematic. For one thing, you wind up playing a pricing game, with little else to finish the deal. And, perhaps most importantly, homeowners no longer want to be sold to, and they are armed with information they didn’t have before.

What’s a better way? Become a problem solver for your remodeling clients. Take the time to understand their home, identify its pain points, and sell products that solve these issues. Paul Burleson, Westlake Royal Building Products’ National Remodeling Accounts Manager, calls this a “sick home selling system.”

Burleson travels the country training contractors and remodelers on a prescription method of selling. The remodeler serves the role of a doctor, diagnosing a home’s problems and then writing a prescription for how to fix it.

He recommends the following tactics for more effective selling:

Change your thinking: Instead of the mindset that you’re selling something, reframe your approach as helping customers buy a solution to fix a problem. One of the things that COVID and natural disasters have taught us in recent years is that we could be shut into our houses at any time. This created a sense of urgency to understand the problems in our homes that make them less safe and comfortable. Rather than selling on pressure and price, you can bring value to your customers by addressing their challenges and making their homes more livable.

Ramp up your education: Solving problems requires an intimate understanding of the products used to fix them. Knowledge of basic features and benefits is the first step, followed by deeper learning of installation best practices. Leverage your LBM dealer and manufacturers for product knowledge sessions and other education.

Understand the effects of trapped moisture and other issues: Trapped moisture is a top enemy of the home because it can create toxic mold. By knowing how exterior products work together to drain away moisture, you can help homeowners make the most appropriate decisions. For example, Westlake Royal Building Products’ CraneBoard® SolidCore® insulated siding has moisture management tracks in the foam and Versetta Stone panelized stone siding has a built-in rainscreen.

Arm yourself with the right tools: When touring the home, use moisture meters, thermal cameras, a Go Pro, and other devices to collect necessary data. Learn how to use that technology to build the case for the homeowner and help them understand the problems or potential problems. For example, a common find is a gutter pulled off the wall, which likely means water running behind the fascia and windows and into the foundation. A $600 fix now can help avoid a $10,000+ overhaul down the road. It’s not smoke and mirrors—they can see and understand your findings.

Another thing Burleson does is give the homeowner a notepad; each of them circles the house and writes down issues that need fixing. Engaging the customer in the process can help build trust and understanding.

Consider a hybrid approach: While nothing can replace the in-person tour, a virtual meeting might make sense for the follow-up discussion. Utilize virtual sessions for busy clients or your own tight schedule.

One thing to keep in in mind is that homeowners know more now than ever. With the Internet, social media sites like Pinterest, and peer reviews on everything from products to your own remodeling services, your clients are coming into the process armed with information about what they want and don’t want. To truly be a valuable resource, you need to stay ahead of them; ensure you have up-to-date knowledge on products, trends, and the latest design and installation techniques.

2023 Color of the Year Selections Reflect Life After the Pandemic

Each year in late summer and fall, major paint companies release their “Colors of the Year” for the following year. These hues represent how each company’s in-house experts interpret the consumer pulse—our emotions, design motivations, influences, and more—and how color selection influences our lives and lifestyles.

While the color reveals are interesting in and of themselves, they provide our industry with a view into the hearts of our customers and a look at how their color choices may shift, or need to be shifted, in the process of navigating the latest trends and tastes.

Not surprisingly, the pandemic has had a tremendous influence on the color trends of the past few years, with many choices seeming to focus on relaxation and tranquility, or perhaps a little brighter for a feeling of positivity and optimism. This year’s selections continued to feel that global impact, but with varied interpretations of how consumers will feel going forward. Of the four colors shown below, two are bold and two are soothing. And perhaps both approaches are appropriate today, as Americans continue to navigate a post-pandemic norm in very different ways.

Here’s a look at a few of the Colors of the Year for 2023.

Benjamin Moore: Raspberry Blush

Benjamin Moore made a big move this year, shifting from 2022’s subtle October Mist, a silver green, to 2023’s vibrant Raspberry Blush. “A vivacious shade of coral tinged with pink, Raspberry Blush enlivens the senses with an electric optimism,” the manufacturer says. The “charismatic,” “unapologetic” shade is saturated and impactful, designed to be bold and make a statement.  

Benjamin Moore 2023 Color of the Year
Photo courtesy Benjamin Moore

The remainder of Benjamin Moore’s Color Trends 2023 palette, including Conch Shell (a dusty but rich pink), Savannah Green (a rich ochre with balanced green and yellow undertones), and North Sea Green (a deep teal with gray undertones) “was chosen for its distinct presence and personality,” the company says.  “Each of these eight confident hues offer inspiration and creativity, while encouraging a push beyond the traditional to experience truly exceptional color.”

Sherwin-Williams: Redend Point

In contrast to Benjamin Moore’s bold color, Sherwin-Williams’ 2023 Color of the Year leads with “warmth and intrigue.” Redend Point, an earthy brownish-pink reminiscent of clay earth and walls of the desert west, is described as “soulful yet subtle.” And while a more calming hue, the company says it represents moving forward and looking ahead, connection and care.

Sherwin Williams 2023 Color of the Year
Photo courtesy Sherwin-Williams

Behr: Blank Canvas

Behr’s 2023 Color of the Year is Blank Canvas, a “hopeful, warm, and welcoming white” the company says will answer homeowners’ need to create retreat-like spaces that feel restorative. At the same time, the company says the color is designed to be versatile. “The color works in both private and shared spaces and can work as a focal color or a foundation to build on for more layered spaces,” Behr says.

Behr 2023 Color of the Year
Photo courtesy Behr

Research showed that the hue would be in demand in 2023: “According to a survey of more than 1,000 U.S. homeowners, 63% of people agree that the color white is mood-boosting, and 77% say it makes them feel positive,” Behr reports. “Homeowners also say they want their home to be a space where they can unwind and destress, according to the survey, needs warm whites like Blank Canvas can help fulfill.” 

PPG: Vining Ivy

PPG joined Benjamin Moore with a saturated statement hue, Vining Ivy, a deep Caribbean aqua, as its 2023 Color of the Year. The manufacturer says the color is classic and elegant, and it works with a variety of styles.

PPG 2023 Color of the Year
Photo courtesy PPG

“Resilience, the need for connection, and inspiration from nature were recurring themes at the Global Color Workshop,” PPG says. “This annual event brings together more than 30 global color stylists from the automotive, consumer electronics, aerospace, and home paint and stain industries. Over the course of several days, the stylists analyze the runway, lifestyles, demographics, geographies, global events, and cross-cultural societal inspirations to determine what colors will resonate and represent that year, including the 2023 Color of the Year.”

Along with predictions from paint manufacturers, the design community highly anticipates the annual announcement of Pantone’s Color of the Year, which is due out in early December. What will follow the color expert’s hopeful yellow-gray duo in 2021 and this year’s creativity-inducing Veri Peri (a dark lavender)? Stay tuned.

8 Quick Tips to Work Efficiently

As labor challenges abound and schedules remain tight, trimming inefficiencies out of your installation processes can add up to critical time and money savings. Every contractor has their tricks for eliminating wasted steps without sacrificing a quality install. Here are a few best practices to work efficiently.

1. When installing vinyl siding, be sure to leverage available accessories that can reduce detail work while ensuring a finished look. These include:
• Dual undersill trim: This is used the same way as standard finish trim, such as under windows or at the top of the wall, but because it has two slots instead of one, there’s no guesswork as to whether you need to bump out the finish trim to keep the siding angles correct.

• Board and Batten Trim: Use this to separate the courses of vertical siding since the profiles can’t overlap at the seam. The Board and Batten Trim has built-in flashing, making installation easy as well as functional.

• Shake Finish Trim: Designed for Westlake Royal Building Products’ Portsmouth Shake Panel, Shake Finish Trim secures ripped panels under windows and doors or at the top of a wall. Use a snap-lock tool to create snap lugs about every 6” to 8”, then snap the panel into the Shake Finish Trim and lock the snap lugs into place securely.

2. If you have a damaged vinyl corner, you can replace it without removing any siding. Cut and remove the existing face, leaving the channels. Cut and remove the face of the new corner, leaving the return. Then snap the new corner over the channel of the old.

3. When installing CraneBoard® Solid Core Siding® insulated vinyl siding, keep the ends of the foam no more than ¼” from each other to retain the insulation value, while giving the panels enough room to expand and contract. Pull and use your measurements from the foam instead of the panel. Both the panel and the foam will be the correct length.

4. For deck stairs, Fulton Fine Woodworks created a wooden jig that fits between the deck boards and shows precisely where to pre-drill for screw placement, eliminating the need to measure. See it here.

5. Need to find center but working with an uneven number? Simple rotate your tape measure, like so: https://www.instagram.com/p/CfnFg3lJAHT/

6. Tim Uhler, lead carpenter at Pioneer Builders, often creates makeshift tools that can do tasks more quickly while reducing user strain and fatigue. For example, instead of bending to cut sheathing while framing walls on the ground, he mounted a floor scraper to a router with spiral bit: https://www.instagram.com/reel/CcuBh83gBzS/?utm_source=ig_web_copy_link

7. To lift heavy beams into place, Uhler made a beam wrench out of plywood: https://www.instagram.com/p/CZIt_NnKiU3/

8. When painting trim, Robert Cripps Construction sprays aerosol hairspray on the painters tape, helping to prevent bleed-through.

Want more pro tips to work efficiently? Check out our compilation on Instagram. Have a tip that can help others in the trades? Post it to Instagram and tag us at @WestlakeRoyalPros.

Westlake Royal Building Products Celebrates 300th Home with Habitat for Humanity 

Together with Habitat for Humanity – MidOhio, Westlake Royal Building Products recently celebrated a historic milestone with the dedication of the 300th home to feature the company’s donated siding and trim materials in the Ohio region. On Thursday, Sept. 15, the three-bedroom, two-bath single family home was dedicated and keys were turned over to the partner family in the South Linden neighborhood of Columbus.

Habitat for Humanity MidOhio home dedication

The dedication of this house marks the 300th siding donation that Westlake Royal has made to Habitat for Humanity – MidOhio over the last 20 years. For this home, Westlake Royal donated 20 squares of siding, including Exterior Portfolio® Vinyl Siding and Portsmouth™ Shake & Shingles Siding, as well as Royal® Shutters, Mounts and Vents accessories. Westlake Royal’s Columbus-based employees also donated their time and skills to help with installing the building products during the construction of the home this summer. 

Installing siding on a Habitat for Humanity MidOhio home.

“Amid inflation and rising costs, the need for affordable housing today is greater than it’s ever been. Westlake Royal is proud to be part of the solution in donating building products for good quality, single-family homes,” said Steve Booz, VP of Marketing & Product Management, Westlake Royal Building Products. “Our partnership with Habitat MidOhio dates back through several company name changes and decades, but our commitment to this organization and the community of Columbus remains unchanged.” 

“When we invest in housing, we invest in the future of the entire community. Thanks to the contributions of Westlake Royal, Habitat MidOhio has brought the dream of homeownership to 300 families,” said E.J. Thomas, President and CEO, Habitat MidOhio. “We are grateful for the generous support of our donors and volunteers, and look forward to continuing our work of providing quality, affordable housing to our family partners.” 

In January 2021, Habitat MidOhio celebrated the dedication of its 1,000th home. The organization works to bring people together to inspire hope, build homes, empower families, and develop communities. For the past 35 years, Habitat MidOhio has served families through new home builds/rehabs (437), owner-occupied home repairs (350), and tithe support to its sister affiliates in Africa (331).