Although homebuilders insist that they are still feeling relatively confident about 2013 when it comes to new construction, it’s the bath- and kitchen-remodelers that may have the most to crow about this year. According to the American Institute of Architects (AIA), home renovations are outpacing new construction these days, with kitchen and bathroom remodels leading the pack. The AIA’s latest survey shows that bathroom and kitchen sizes are increasing for the first time in several years, probably because many people believe that upgrading one or both of these rooms will attract buyers when they put their homes on the market. Interestingly enough, one of the main kitchen-remodel requests is for a computer area or “recharging station” in the kitchen because, as AIA chief economist Kermit Baker explained, “increasingly, people need room for computers in their kitchen for home-office or cooking-related tasks.” He added that many people use the kitchen as a “drop area for recharging iPads and cellphones, too.”
The survey collected information from 500 residences and indicated that business is improving for residential architects. Billing scores at residential construction firms that responded to the survey averaged 54.2, with any score above 50 indicating positive revenue growth. What do you think investors should take away from these survey results?
Your comments and questions are welcomed below.
by Carole VanSickle