Today was the release of our end of year 2015 data report, recapping findings our user data showed over the past year.
Millenials are moving into their first homes, and a trend of renovating existing structures is becoming a sweeping trend in contrast to new builds. Unlike Baby Boomers and Generation X, Millenials are environmentally conscious, which is leading to a rise in energy efficient housing renovations, such as efficient windows, siding, roofing, insulation, appliances and more. This is also marked with a push by the U.S Green Building Council for homes to become LEED certified, marking the continued effort toward renewable and environmentally conscious building planning.
Luckily for Millenials, who have not had many years in their careers to acquire large amounts of cash for renovating, energy efficient projects are relatively low in cost. Those on Kukun’s platform, such as upgrading a breaker panel, replacing an old A/C unit, or installing an efficient water heater, have an average project cost of under $5,000. If enough work is done to gain a certification (such as LEED), this can contribute thousands in equity to the value of your home.
Revealed data also shows that homeowners are willing to spend more on nicer products and materials for their renovation than in previous years. Over ¾ of Kukun’s users chose the ‘Better’ or ‘Best’ options when presented with finish levels. This fact coincides with Home Improvement Research Institute’s forecast of accelerated growth in home improvement spending through 2019, with an expected 4.4% growth rate in 2016.
This is an excellent trend for renovation professionals, as home improvements traditionally see poor numbers through recessions, which has been the trend since 2008. Marked by an economic recovery, Kukun expects to see a rise in luxury spending on its platform, and in the renovation marketplace as a whole.
Findings also show that while Kukun has become popular with homeowners, it has organically grown to become an excellent tool for professionals as well. A piece by Realtor.com shows the frustration that can be felt by a contractor when communication breaks down between professional and client.
This problem stems from a lack of planning on the consumer side, where a client will throw a headful of ideas and a bit of cash at a contractor, expecting their house to look like it belongs on HGTV at completion.
Kukun’s easy to use platform fixes that problem, empowering the consumer with concrete details of a renovation, all in PDF format. With user preferences and decisions down on paper, both professional and client are agreed on what will be happening, and what can be expected in terms of cost and return.
We have even received requests from users asking Kukun who they should use to complete projects estimated on our site, which is why we released our ‘find a professional’ section. Home renovation professionals can sign up for a free profile, and homeowner’s who search in their area will find the most qualified professional to complete their job.
2016 and beyond is shaping up to be a great year for the home renovation marketplace, and we hope our data report has given some insights for the months ahead.Download the report here