More households will renovate their properties between 2018 and 2020, according to a Housing Industry Association (HIA) report.
Construction activity will decline during the same period, but the rebound in renovation work means more business for homebuilders. As early as now, it’s best to look around for great deals from bathroom or kitchen unit suppliers such as Jayfurn Industries
Reasons for Growth
The HIA report cited a backlog of overdue projects and more properties due for renovation as some of the reasons for the expected growth. The projected value of the market will likewise increase to $34.7 billion from the current value of $32 billion.
Residential contractors should aim to take a slice of this bigger market by knowing the most commonly renovated parts of the house. Most households remodel their bathrooms and kitchens partly because these areas have fixtures that are most vulnerable to wear and tear. Others renovate these rooms due to the significant value that it can add to their homes.
Australians spend around $16,900 on average for kitchen renovations and $12,460 for the same work on their bathroom, according to an analysis. It showed that these projects tend to provide the highest return on investment, so homebuilders should expect demand for such work to increase in the next two years.
The analysis, however, found a surprising practice among homeowners who spend on adding a new pool. Despite the insignificant value that it offers, many spend an average of $21,429 on a swimming pool. This accounted for the most significant expense for any homeowner’s budget, although the return on investment isn’t as high as one may expect.
Homebuilders and contractors should focus more on offering renovation services, given that the demand for housing improvements will be stable in the next few years. How does your business plan to expand market share in the upcoming renovation trend?