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Gains in Single-Family Housing Expected to Increase in 2022
WASHINGTON, DC — Breaking an eight-year trend, there have been more single-family homes under construction in recent months than multifamily units, according to the National Association of Home Builders, which predicted additional gains in single-family construction in 2022.
Despite some cooling earlier this year, the continued strength of single-family construction in 2021 means that there are now 28% more single-family homes under construction than a year ago, said Robert Dietz, chief economist for the Washington, DC-based NAHB.
“These gains mean single-family completions will increase in 2022, bringing more inventory to market despite a 19% year-over-year rise in construction material costs and longer construction times,” Dietz said.
Ongoing single-family and multifamily housing production accelerated in November, due to strong demand, with overall housing starts increasing 11.8% to a seasonally adjusted annual rate of 1.68 million units, according to U.S. government figures.
Despite inflation concerns and ongoing production bottlenecks, builder confidence in the market for newly built single-family homes also edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory, the NAHB added.
“While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge,” said Dietz. “Building has increased but the industry faces constraints, namely cost/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-COVID 2019 level, we expect that higher interest rates in 2022 will put a damper on housing affordability.”
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Wellness Features Termed a ‘Necessity’ for Today’s Homes
INDIANAPOLIS — Wellness features, impacted by the COVID-19 pandemic and an elevated awareness of indoor environments’ impact on physical and mental health, are no longer a luxury, but rather a necessity in today’s homes, a leading wellness expert contends.
According to Dr. Jie Zhao, exec. v.p. of Delos, a New York-based wellness real estate and technology company, COVID-19 has literally reshaped the way homes – including kitchens and baths – will be designed, built, equipped and remodeled in years to come.
“People are much more cognizant of the important role that homes play in our lives, and how these environments can have a positive or negative impact on the wellness of their inhabitants,” Jie said.
At the recent “Insights Summit,” an annual event sponsored by the Home Improvement Research Institute (HIRI), Jie outlined four key wellness trends that he believes will have the greatest impact on home improvement in the post-pandemic world. Among them:
• Indoor Air Quality: Because viruses spread through the air much easier than by surface contact, the pandemic shed light on the importance of indoor air quality, or IAQ, as a component of a healthy home, Jie said.
“Air filtration is vital to the reduction of particle transmission,” he observed. “Not only can air-cleaning technologies improve peace of mind when it comes to invisible health threats like COVID-19, they also tackle visible particles in the air such as smoke and other harmful particles.”
Jie said that ventilation and/or ionization technology will be at the forefront of the fight against contaminated air in home spaces. “For this reason, IAQ may be the biggest wellness trend to have emerged from the pandemic,” he noted.
• Mental Wellness: Mental wellness issues persisted long before the emergence of the coronavirus, but the amount of attention devoted to the topic increased significantly afterward, Jie said, noting that mental health came to the forefront of conversation due to isolation during stay-at-home orders.
Jie observed that one result of this for the home-improvement industry is the general migration away from congested cities in favor of larger residences, more nature and less commuting time. Jie also pointed to the effect of mental wellness on increased demand in certain product categories, including home entertainment, artists’ supplies, sports equipment and pets.
• Home Offices: Another major change emerging from the pandemic is the increased importance of the home office.
“Many employees have made investments in their home offices and have gotten used to working from home,” Jie said, pointing to surveys which found that 80% of workers want to be able to work from home three days per week, and 92% want at least one remote workday per week.
“There has been a rise in office furniture and accessories that support health and wellness, such as the standing desk or ergonomic keyboard,” Jie said, adding that 20-25% of companies are currently reimbursing their employees for wellness-related home office supplies and furniture, “hinting at the prospect that work-from-home may be around well into the coming years.”
• Fitness: While the spread of COVID-19 led to the temporary closure of most gyms and athletic institutions, it gave rise to new home fitness technologies, as people sought to stay fit within the confines of their own homes, Jie pointed out.
“Companies like Peloton and MIRROR are changing the way we think about fitness (and) combining the physical and virtual,” he said. “Consumers not only purchase a piece of gym equipment for their home, but they buy into an entire online social and content experience.”
“I expect to see more integration with online fitness platforms and home décor,” he said. “People want convertible spaces, so the easier their equipment blends with their home and lifestyle, the better.”
The post Wellness Features Termed a ‘Necessity’ for Today’s Homes appeared first on Kitchen & Bath Design News.
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3D Laminate vs. MDF For Your Cabinetry
A lot of homeowners come in looking for new custom cabinets or a cabinet reface. However, most of the time they are uncertain as to which cabinetry material they should use. Many homeowners initially think that wood is the best and only option for their home. Don’t get me wrong, wood can be a great option for your kitchen, but it’s most definitely not your only or best option. Recently, lots of homeowners who have been looking to change up their kitchen have been contemplating whether to use 3D laminate or MDF for their cabinetry. Here are the pros and cons of using either 3D laminates or MDF for your cabinetry.
3D Laminate
Modern science and technology have paved the way for a new type of laminate. These new laminated doors are designed to look just like their wood counterparts. Laminate cabinets are less expensive wooden cabinetry doors that are covered in a plastic-like layer called laminate.
Pros
- high- and low-pressure laminates can withstand extreme pressure
- easy to clean
- scratch resistant
- cost affordable
- endless color options and can be made to look uniform
- quick to produce while maintaining a high-quality look and feel
Cons
- although durable prone to damage due to the pressure it was made under
- the laminate may slowly lift over time.
- difficult to repair a damage, so it’s easier to replace
MDF (medium-density fiberboard)
MDF cabinetry is made from wood fibers, resin, and wax. MDF doors are a simple option to reduce the large cost of installing new custom cabinets. It’s durable, stronger, and denser than other forms of pressed board, so it can work in almost any application where a natural wood product would be applied.
Pros
- fewer cracking or warping issues
- no noticeable grain on your cabinets so it gives your cabinets a smoother finish
- easy to customize
- cost effective
- environmentally friendly product
- high levels of moisture resistance
Cons
- scratches cannot be repaired easily
- do not handle extreme heat well
- MDF doors cannot be stained
- does not equate to the natural aesthetic found in solid wood.
Kitchen Solvers
There always seems to be an abundance of options when choosing your new cabinetry. This abundance of options means the kitchen of your dreams can become a reality. But it can also mean feeling a little overwhelmed with your choices. When you’re in the process of a remodel, overwhelmed is the last thing we want you to feel like when upgrading your kitchen. At Kitchen Solvers, part of our core belief is providing each homeowner with the most Pleasant Remodeling Experience. From the moment you call, we will meet you where you are at in the buying process. Call your nearest kitchen solvers for your consultation! If you’re looking to gain a greater insight on what a kitchen remodel entails make sure to visit our blog articles like Looking for a Financially Savvy Cabinet Restoration? Cabinet Refacing could be your Solution! And What are the Steps in a Kitchen Remodel?
The post 3D Laminate vs. MDF For Your Cabinetry appeared first on Kitchen Solvers.
Why You Should Consider a Hybrid Kitchen Remodel
Hybrid kitchen is a relatively new term we coined in the remodeling industry. So you might be wondering, what exactly does a hybrid kitchen remodel entail? Hybrid kitchens allow Kitchen Solvers to offer the best of both options to customers by saving them money while allowing them to add new cabinets or replace some cabinets that might not be useful. Here’s why a hybrid remodel might be the perfect fit for your next kitchen remodel.
Hybrid kitchens construct a new style of kitchen around your already existing design. The beauty of a hybrid kitchen is that it can truly be whatever you want. If you’re looking to mix new cabinets with refaced cabinets, a hybrid kitchen remodel is the way to go. Not to mention hybrid kitchens are a great way to improve the functioning of your kitchen space.
It’s common for homeowners to have a few doubts going into their remodel. Oftentimes, there’s a few things in their kitchen which they absolutely love and do not want to part with. A hybrid kitchen remodel mixes what you love about your current kitchen with what you want to incorporate into your new kitchen. For example, maybe you love most of your kitchen, but wish you had an extra-large pantry in an empty corner for more storage space. Kitchen Solvers can create a cohesive look by refacing your existing cabinetry and adding a new pantry cabinet and refacing that as well. We’ve also had homeowners have flood damage to their lower cabinets, but their upper cabinets are still in great condition. We can salvage the upper cabinets and add new lower cabinets and reface all the cabinets to make it look like one cohesive kitchen. At Kitchen Solvers, we pride ourselves in making your kitchen dreams become your reality.
Opting to have a hybrid kitchen remodel means that no have the most flexibility to cater your space to your specific liking. Hybrid kitchens mean every look is unique, so you never have to worry about stepping foot in a kitchen that looks identical to yours. Not only will your kitchen look unique, but hybrid remodeling is an excellent route for those who want to remain within their budget. Instead of buying all new materials and paying for longer hours, hybrid kitchens use what you want and replace the outdated designs.
Kitchen Solvers
At Kitchen Solvers, we want to ensure that you, the homeowner, protect and preserve your beautiful kitchen. The most important factor in how to make a kitchen remodel easy is getting help from professionals. At Kitchen Solvers, our expert design team can help you create the ultimate kitchen that fits your budget and offers some of the best features and styles available.
Be sure to check out some of our most popular articles: How can I make my kitchen more luxurious on a budget? and 5 Reasons on Why You Should Say “Yes” to Quartz.
The post Why You Should Consider a Hybrid Kitchen Remodel appeared first on Kitchen Solvers.
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2021 Home Spending Continued at ‘Dizzying Pace,’ Report Finds
DENVER — Not only did homeowners spend more on their homes in 2021, but they also completed more projects, according to a new report by Angi, the Denver-based firm that links homeowners with remodeling and other home-related professionals.
According to Angi’s report annual 2021 State of Home Spending Report – entitled The Great Shift: How the Pandemic Put Homes in Focus – surveyed homeowners spent an average of $15,680 on home improvement, home maintenance and emergency repairs in 2021, and took on an average of 14.4 separate home projects.
“The growth in home spending we witnessed continued at a dizzying pace as people have continued spending more time in their homes,” said Mischa Fisher, chief economist for Angi, whose annual report focuses on trends in home spending including drivers, obstacles, top projects and forecasts for the years ahead.
“2021 also presented homeowners with trillions of dollars of unexpected home equity and that wealth has been, at least in part, reinvested in the home through improvements, maintenance and repairs,” Fisher observed. “Pre-pandemic, people were motivated to work on their homes for a return on investment or other financial incentives. Now, they’re prioritizing projects that help their homes better suit their new normal,” she added.
The most popular home project of 2021 was interior painting, completed by nearly one in three homeowners (32%), followed by bathroom remodels (28%) and installing smart home devices (27%). Other top projects include flooring (26.7%), landscaping (24.7%), exterior painting (24.2%), kitchen remodels (23.7%), fencing (23.1%), new roofing (19.6%) and new cabinets (19.5%).
The Angi report also asked homeowners what home projects they would do if given $10,000. While the overall top project was a living room upgrade, selected by 17% of homeowners, the different priorities of men and women were clear. Male homeowners prioritized living room upgrades (18%), outdoor space upgrades (17%) and bedroom upgrades (15%), while women were more interested in kitchen remodels (21%), bathroom upgrades (17%) and outdoor space upgrades (16%).
The State of Home Spending was based on Angi’s analysis of surveys fielded to 6,400 consumers in early October, the company said.
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Showcasing the Shower
Showers have come a long way in design, from a basic area adorned with standard subway tile and heavy framed doors to an oasis adorned with spectacular tile and advanced shower systems showcased through stunning frameless glass surrounds. In keeping with this trend, many homeowners are removing seldom-used tubs to expand their showers, making them the focal point of the space.
While frameless shower doors remain the most popular versions, doors that feature etched designs, decorative borders and patterns are also garnering significant attention. Whether the design is contemporary or traditional, there is a shower enclosure to fit the space.
Below are some of the hottest trends in shower enclosures.
— Many clear shower enclosures are designed with minimal hardware for a streamlined look, creating a sense of openness in the bath.
— Frames, trims and handles are offered in a range of finishes, from the more standard chrome and polished nickel to the more current brushed brass and rose gold.
— As boomers adapt their homes to become safer and physically more accessible as they age, low-threshold and barrier-free showers are gaining in popularity, and easy-to-use and push-to-open shower doors are garnering more attention.
— Taller shower enclosures (at least 76”) are popular for their ability to take advantage of floor-to-ceiling tile designs.
–Matte black is featured in many gridscape and trim elements, coordinating with bath fittings in similar finishes.
–Frosted glass and distinctive patterns that blur the interior and deliver privacy to the bather are among the requests from today’s homeowners.
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Exertis Acquires Almo Corporation
Philadelphia – DCC Technology, a Dublin, Ireland-based technology distribution and services business that trades as Exertis, has acquired Almo Corporation in North America.
The move extends the company’s international scale in the Pro AV sector and ramps up its expansion in the North American market. The addition of Almo Corporation builds on other acquisitions in North America such as Stampede, Jam Industries, The Music People and JB&A. It expands Exertis’ Pro AV capability to form the largest specialist Pro AV business in North America.
Alongside its Pro AV business, Almo Corporation is the largest distributor of mainstream appliances, delivering a comprehensive portfolio of products including full kitchen packages with essential appliances to small and medium-sized retailers throughout the U.S. In addition, it is the leading distributor of premium appliances, serving retailers and builders designing luxury residential installations for refrigeration, ventilation and cooking in both indoor and outdoor settings. Almo’s business in consumer appliances and lifestyle products will add scale to Exertis North America’s business in the consumer channel.
Almo’s 75-year-old, third-generation, family-owned business brings 660 employees, nine distribution centers and more than 2.5 million square feet of warehousing space across North America. Almo Corporation will benefit from leveraging Exertis’ financial resources and supply-chain logistics, according to the company. The acquisition will provide Exertis North America with increased back-end economies of scale allied to the front-end specialization.
Almo will continue to be operated by the Chaiken Family, with Warren Chaiken as president and CEO and Gene Chaiken as Chairman. The combined Exertis and Almo Pro AV divisions will, in due course, be led by Sam Taylor, current exec. v.p. & COO of Almo Pro AV. Shortly after the completion of the integration, the combined business will be rebranded as Exertis Almo Pro AV.
John Dunne, a long-time senior executive with Exertis, currently leading the Exertis Pro AV team in North America, will join the Almo executive team and help lead the integration. The Premium Appliances and Mainstream Appliances divisions will continue to be led by Steve Terry and Jack Halperin, respectively.
Exertis’ expanded North American operation becomes a $2.4 billion business overseen by Martin Szpiro, managing director of Exertis North America. It forms part of the international expansion strategy of Exertis International, under Managing Director Clive Fitzharris.
Tim Griffin, DCC Technology & Exertis managing director said, “The acquisition of Almo Corporation is the largest in DCC’s history and signals our confident and ambitious intent to expand DCC Technology. By integrating Almo with our North American business, we will form the largest specialist Pro AV business in North America. Almo’s 75-year history of growth and success, combined with its longstanding relationships with industry partners and its ability to continually innovate and expand will be great assets to Exertis. In turn, we will bring significant economies of scale, global supply chain access and other benefits to the customers of Almo Corporation.”
Warren Chaiken, Almo Corporation president & CEO stated, “Having just completed a year-long celebration of 75 years of growth and business success, the time is right to give our manufacturer and channel partners a truly global distribution stage so they can operate their businesses at a greater capacity, leverage more buying power and the ability to compete for a more comprehensive position in the global supply chain. We are committed to growing with our partners by remaining their value-added distributor with larger scale and access to more products, more services and more financial support. For them, this transition will be seamless in that we will operate business as usual.”
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Spotlight Kitchens of November – New Cabinetry
- Project Location: Indianapolis, IN
- Remodel type: New Cabinetry
- Type of door style: Simple Shaker
- Remodel style: Modern
- Color: White
- Countertop: Laminate
- Countertop Color: White/Grey
- Backsplash: Subway Tile
For more information about this project, please visit Kitchen Solvers of North Indianapolis’ Gallery page.
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Leads Robust, But Margins Being Squeezed, KBDN Survey Finds
CHICAGO — Sales leads and project requests are robust, and revenue forecasts are bullish, but profit margins are reportedly being squeezed, COVID-19 remains a concern, and kitchen/bath dealers and designers continue to face supply-chain snafus, product price hikes, a skilled-labor shortage, and other headwinds to more robust growth in the months ahead.
That’s the primary consensus of a series of surveys conducted by Kitchen & Bath Design News and other industry sources attempting to get a handle on 2022 business prospects, following a year in which the kitchen/bath market witnessed sharp growth in both its remodeling and new-construction sectors, while COVID-19 continued to reshape the nation’s housing landscape, incomes and saving accounts rose, design trends and homeowner demographics evolved, and larger, more-multi-functional homes continued to remain a focus of consumer spending
But the pace of market growth, while projected to be palpable, has tapered off in recent months, and is expected to cool even more in the months ahead, as inflation scythes through the economy, product and labor availability continue to hamstring design/remodeling firms, housing affordability remains at historically low levels, and uncertainties tied to the coronavirus continue to loom.
KBDN’s nationwide survey of dealers and designers, conducted at the tail end of 2021, found that an overwhelming majority (86+%) of those polled said they expect their company’s revenue to either increase or remain roughly the same in 2022 compared to 2021. In contrast, less than 14% said they anticipate a revenue decline in 2022. Revenue gains are anticipated for both new and remodeled kitchens and baths, although dealers and designers are more bullish about revenue growth from kitchens (34.2%) than they are from baths (7.9%).
Dealers and designers also report that sales leads and project requests are up dramatically compared to the same time a year ago – understandable given how the current confluence of COVID-related demand, savings growth, home appreciation, government stimulus and other factors continue to spur homeowner spending. Specifically, a whopping 65+% of survey participants report their current sales leads are either somewhat or much higher now compared to a year ago, while only about 15% report that sales leads are lower and about 19% say they are about the same.
But while sales leads and strong, and revenue is generally expected to increase, surveyed dealers and designers paint a different picture when it comes to anticipated profit margins. For example, while 33.6% of those surveyed expect 2022 profit margins to increase, 14.2% expect margins to decline compared to 2021, and more than half (52.2%) expect margins to remain the same.
Other survey findings:
n With the COVID-driven emphasis on health and wellness, work-at-home arrangements and families sheltering in place, increases in client requests are being reported for products that range from universal design, smart appliances and aging-in-place elements to outdoor kitchens, anti-microbial materials and home ventilation.
n Pricing is apparently not a major factor for clients, many of whom seem willing to spend whatever it takes to get the kitchens and bathrooms that they want. For instance, while roughly 60% of the dealers and designers surveyed by KBDN say that pricing is either less important to clients or about the same as it was a year ago, far less (40%) say that pricing is more critical to clients now.
n While 51% of the design professionals surveyed say they are either extremely, very concerned or somewhat concerned about COVID-19 negatively impacting their business operations and profits in 2022, more than half (54%) say they are “not very” or “not at all” concerned, even in light of the new Omicron variant impacting the nation.
n While less than 5% of survey respondents report clients postponing or cancelling projects, nearly 44% report they are experiencing longer lead times for product deliveries and/or production and shipping delays.
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Pace of Market Growth Seen Cooling After Strong 2021 Gains
HACKETTSTOWN, NJ — Ongoing supply-chain disruptions coupled with labor shortages, higher material costs and emerging uncertainties wrought by COVID-19 are cooling the pace of kitchen and bath market growth in the wake of an exceptionally strong year in 2021.
According to the latest Market Forecast Report issued in recent weeks by the National Kitchen & Bath Association, the 2021 kitchen and bath industry posted healthy, double-digit gains over 2020, although growth projections were “pared back a bit” compared to the NKBA’s previous (July 2021) forecast, “as lingering issues caused by the pandemic seem to be catching up to consumer sentiment.”
The NKBA projected total 2021 revenues of $167 billion, a 19% increase over the $141 billion that was posted in 2020, but lower than earlier forecasts, which predicted that full-year revenue totals would reach $171 billion.
“2021 has been like none other for our industry, as strong growth across virtually every sector led to record revenues,” said Bill Darcy, CEO of the Hackettstown, NJ-based NKBA. However, some homeowners, faced with price increases related to supply chain disruptions, “are deferring projects until they’ve enough saved to get exactly what they want, or in the hope that costs will come down,” Darcy added.
The NKBA reported a nearly 10% year-over-year growth in the kitchen and bath remodeling sector in 2021, and a 26% growth in the new construction sector. Premium projects were up by more than 22%, while low-end projects grew about 11%, “suggesting a cooling of the DIY trend,” the NKBA said.
“These findings are very encouraging and indicate that…growth should be sustained into 2022,” Darcy said.
In related news, the latest NKBA/John Burns Real Estate Consulting “Kitchen & Bath Market Index,” issued in December, remained in “solidly expanding territory,” but cooled from the record number posted in the previous quarter. Expected future activity “also tailed off a bit,” having peaked in the first quarter of 2021, reported the NKBA and John Burns.
“In relative terms, the outlook remains quite positive,” with association members projecting about a 9% sales gain in 2022 – “impressive if it holds true, given 2021’s strong growth,” said the NKBA, adding that supply chain disruptions, cost of materials and availability of skilled labor are hampering the industry’s ability to take full advantage of strong demand…as NKBA members scramble to meet client needs, with most resorting to brands they’ve never previously used.”
Other findings of the NKBA/John Burns Report were as follows:
n The challenging business environment has forced the industry to become “supplier/vendor agnostic” – prioritizing product availability above other factors. The industry has also moved toward sourcing more domestic-based products in an attempt to circumvent global supply chain issues. Manufacturers are prioritizing high-value products to protect profit margins while stockpiling excess materials to help ease lead times and overall constraints.
n The kitchen and bath industry continues to feel the pains of ongoing supply chain challenges. Port congestion is further compounding strained supply chains that are still recovering from the effects of Winter Storm Uri and Hurricane Ida, while labor shortages are causing delays in the trucking industry. Meanwhile, lead times for domestic and foreign raw materials are well over 6+ weeks and has many within the sector struggling to keep up with demand in today’s economy. As a result, product backlogs extend well into 2022 as these difficulties prevent those in the industry from staffing full production schedules.
n Even in the face of ongoing challenges, the industry remains cautiously optimistic about the health of the sector. Despite projects being pushed into 2022, the industry is continuing to see demand for building and construction projects as 84% of firms report low postponement rates and 90% report low cancellation rates relative to their overall project volume.
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