This article was originally published by a www.houzz.com . Read the Original article here. .
In the latest 2023 NAHB member census, 21% of NAHB builder members listed residential remodeling as their primary business. These remodelers tend to be relatively small, with a median of five employees and a median annual revenue of $1.8 million. They are thus even smaller than NAHB builder members in general, who had a median of six employees and median annual revenue of $3.4 million, as reported in a recent post.
Among the residential remodelers, 21% reported a dollar volume of less than $500,000 in 2023, 20% reported between $500,000 and $999,999, 47% between $1.0 and $4.9 million, 8% between $5.0 and $9.9 million, 2% between $10.0 million and $14.9 million, and another 2% reported $15.0 million or more. None reported zero business activity in 2023.
The median annual revenue for residential remodelers in 2023 was $1.8 million—considerably below the $3.4 million median calculated across all NAHB builder members, and a small fraction of the $45.0 million threshold the Small Business Administration uses to classify construction businesses as small. Even so, residential remodelers’ median revenue was up from the $1.2 million recorded in 2022.
The median number of payroll employees was also relatively small among NAHB’s residential remodelers in 2023—five, compared to six for all NAHB builder members. Both numbers were unchanged from 2022.
To provide a measure of housing activity roughly analogous to starts, the NAHB census asked builder members who are primarily or secondarily residential remodelers about the number of remodeling jobs they completed in 2023 costing $10,000 or more. The responses show that a plurality of 39% completed 1 to 5 jobs of this size, 16% did 6 to 10, 22% did 11 to 25, 15% did 26 to 99, and 3% completed 100 or more jobs costing more than $10,000. On average, builder members involved in residential remodeling as a primary or secondary activity completed 20 jobs costing $10,000 or more in 2023. The median number was 7.
The numbers are significantly higher if the calculations are confined to the 21% of NAHB builder members who list residential remodeling specifically as their primary activity. These members completed an average of 32 and a median of 15 $10,000-plus jobs in 2023. These results are not significantly different from the ones reported in 2022, when NAHB first included the remodeling jobs question in its member census.
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This article was originally published by a eyeonhousing.org . Read the Original article here. .
Prepare Clients for Construction
Start by setting a target date for construction, then give the homeowners clear instructions on how to prepare for their remodel. “Depending on the project, a homeowner may need to remove all items from kitchen or bathroom cabinets, or any other furniture that we’ll need to move to lay floor tile, for instance,” Palacio says.
It may be helpful to have a pre-construction meeting with the client, during which you discuss safety concerns, noise tolerance and limited access to living space. “We talk about where they are going to live and work during our planning process, and about how they will prepare to pack and move their belongings,” Bettinger says. Her team also sends clients a document with more details on how to prepare for construction.
This article was originally published by a www.houzz.com . Read the Original article here. .
First, let’s take a look at what’s often the first consideration when remodeling a bathroom: cost. As with many products and services, median spend on all bathroom remodels has risen — up 11%, from $13,500 in 2022 to $15,000 in 2023. The rise is due to an increase in the median spend for major remodels (in which at least the shower is upgraded) and minor remodels (those without a shower upgrade).
The median spend on major remodels rose 5%, from $20,000 in 2022 to $21,000 in 2023. Over the same period, the median spend on minor remodels increased from $8,000 to $8,500. For minor remodels of larger bathrooms (100 or more square feet), spend rose 15%, from $10,000 in 2022 to $11,500 in 2023. For minor remodels of smaller bathrooms (less than 100 square feet), spend rose 20% year over year, from $5,000 to $6,000.
Keep in mind, economists like to reference the median, or midpoint, figure rather than the average for this kind of data because the average can be skewed, can be volatile year over year and can be misleadingly high or low because of a single project that costs far more or less than others.