Intro
Technology and the economy are evolving, and so are the needs of homeowners.
In 2020, covid-19 changed up the dynamic of several different industries, and the home improvement space is no exception.
To thrive in today’s market, it’s important to understand your customers and what’s important to them.
Here are six trends in the home improvement industry and some tips on what your customers will be looking for in 2024.
Trend 1. Renovating Instead of Moving
In 2021, there was a big spike in home improvement spending. With inflated housing prices, it made more sense to renovate to suit long term needs than it did to move. We will probably see this trend continue - especially among homeowners who locked in low interest rates before 2021.
In 2022 and 2023, Service Allies saw a lot of homeowners opt for renovations that added living space, like additions and basement finishes. We noticed that lead costs for these types of projects were relatively low compared to other renovations, indicating a high demand. This is probably caused in part by more and more college-aged children living with their parents.
Trend 2. Aging in Place
U.S. News & World report surveyed adults 55 and over in 2023. 93% of the respondents noted that aging in place wawa an important goal for them.
Senior homeowners are making upgrades to their home to help them maintain their independence for as long as possible. These upgrades include:
- Walk in tubs and showers
- Stair lifts
- Comfort-height toilets
- Smart lighting and toilets
A third of home improvement spend in 2024 is expected to be from homeowners aged 65 and older, so these types of upgrades will likely continue to be important in 2024.
Trend 3. Sustainability
Homeowners, especially gen x and millennials, are becoming more interested in home improvement projects that promote sustainability.
Contractors who offer solutions to conserve energy and reduce waste will likely have an edge in 2024, especially among the younger generations. These solutions may include:
- Toilets and appliances that use less water
- Energy saving appliances
- Upgrades to insulation, windows, and doors
- LED lighting
This trend is likely to keep growing as buying power gradually shifts to the younger generations.
Trend 4. Smart Home Technology
Technology continues to push the boundaries of what’s possible for home automation.
Homeowners are getting the most out of their home with features like smart lighting, wifi-controlled thermostats, video doorbells, and home security systems. There are even devices that send automated alerts to your phone when there’s an issue with HVAC or plumbing systems.
A market is being created for home automation experts. Some of these experts help homeowners connect most or all of their home’s functionality to a single mobile app.
Since robust home automation is a trend that’s likely here to stay, contractors who can help build or integrate with home automation systems will have an edge among homeowners who this is important to.
Trend 5. Transparency
In recent years, homeowners have been bombarded with automated texts and calls from solicitors. The market is pushing back, and new laws are coming into effect to increase transparency and mitigate this type of spam.
In 2021, major U.S. carriers (T-Mobile, AT&T, and Verizon) came together to decide how to regulate texting from applications. These new regulations require that all text messages being sent from applications to persons (A2P) be registered with the carriers, and that easy opt outs are provided among other things.
A new law that’s going into effect in June also requires direct consent from consumers before they receive automated calls or text messages. This will present a challenge to lead companies who advertise their own brand and distribute the leads to local contractors, since homeowners will have to consent to each contractor specifically to receive their automated notifications and promotions.
Homeowners want to know who they’re doing business with, and they don’t want to be bombarded. To serve homeowners in 2024, we’ll need to consider how our sales process and automated efforts affect our customers, and possibly make some adjustments.
Trend 6. Virtual Meetings
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Since covid forced so many people to start working from home, homeowners got much more comfortable with virtual meetings. Some clients of Service Allies use virtual meetings in their sales process to present 3D renderings to customers or go through proposals.
In fact, there’s a large handyman company called Front Door that assists homeowners through their app. They connect with their customers over video to diagnose issues with electrical, plumbing, HVAC, and help customers resolve the issues themselves.
I believe this change in the market presents an opportunity for home improvement contractors to reduce their travel time for presentations and sell projects over zoom.
Trend 7. Potential Decline in 2024
Many U.S. contractors are booked out for months and have stopped taking on new customers. However, it’s estimated that home improvement spending will drop off by about $40 billion in 2024, so that could change.
If spending does drop off, marketing will become an even bigger priority. Lead generation and other marketing efforts will grow in demand, and marketing costs could rise for the industry.
Summary
It doesn’t look like home improvement is going anywhere for a long time to come. But it is certainly changing as homeowners’ priorities shift.
Home improvement contractors who are able to adapt and serve the new market will thrive in 2024. And in addition to supplying for the demands of the market, customer service, communication, and courtesy will always go a long way.
Here’s to a successful 2024!
Sources
- https://www.kbbonline.com/news/trends-inspirations/angi-releases-annual-report-on-2024-home-improvement-trends/
- https://www.proremodeler.com/4-surprising-home-improvement-trends-2024
- https://www.usnews.com/360-reviews/services/senior-tech-aging-in-place-survey
- https://www.ecowatch.com/solar/sustainable-home-improvements
- https://smartercontact.com/blog/what-is-10dlc/
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