As many of us prepare for the upcoming holidays, I thought I’d do my part by scouting out changes Santa might see as he readies to land on the rooftops of U.S. homes next week. I did some fact-finding in our Annual Builder Practices Reports to determine how changes in new home construction, particularly on roofs, may impact his annual Christmas eve mission. So below is my list – neither naughty, nor nice; just the facts as revealed in Home Innovation’s 2019 Builder Practices Reports … but I did check them twice!
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Going with a really cheap survey sample may be one of the biggest mistakes your company could make in conducting market research among construction pros. No doubt, you can get cheap survey sample for about any set of qualifications for just $5, $10, or $20 per completed response. However, we have found through our own experience, as well as anecdotally from clients who’ve been lured in by cheap prices in the past, that more than 75% of “qualified” construction pros from consumer panels are not really construction pros at all; and the rest of the list is typically of questionable quality. As they say, garbage in, garbage out.
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During this week’s Housewrap 2019 conference in Ft. Lauderdale, I presented, “Trends and Opportunities in the Residential Housewrap Market.” The presentation included information from our Annual Builder Practices Reports and Annual Consumer Practices Reports.
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At Home Innovation Research Labs, we’re continuing to monitor the building industry climate and market opportunities for offsite housing construction through our surveys of home builders. Most recently, our August 2019 Omnibus Survey of builders included several questions on this topic.
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In recent years, a great deal of emphasis has been placed on the skilled labor shortage affecting construction and the related changes in building and buying patterns this has caused among home builders. But there may be an even greater pain-point among builders that’s getting a lot less attention—builder sensitivity to increases in building materials prices. Given the nature of the construction business, price increases over the course of home construction (currently averaging 7 months from breaking ground to completion) cuts into margins, while price declines are a windfall. The problem is that lately price increases have far outweighed decreases.
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Data collection for our Annual Builder Practices Survey is complete and initial findings are now being published. More than 1,500 U.S. home builders participated this year to give us highly detailed information on their new home characteristics and the products they purchased for their homes.
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Data collection for our Annual Consumer Practices Survey is complete and we’re now compiling and publishing the initial findings. More than 110,000 U.S. and Canadian households participated this year, and provided highly detailed information on their remodeling activities and purchases in 30 different product categories for the last year.
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During this year’s International Builders’ Show in Las Vegas, I presented, “When and Where Off-Site Housing Technologies Will Emerge” to members of NAHB’s Building Systems Council (BSC). The presentation included information from a 10-year summary of our Annual Builder Practices Reports and a survey conducted in December 2018 of home 300 builders who were asked about their future intentions for using building components and off-site housing technologies. While I’d provided an overview of December’s survey findings here on our website, the presentation was based on a more in-depth analysis based on builder type, size, and region.
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Two weeks ago, I blogged about a summary of findings to a builder survey, where more than 250 write-in responses to the question, “What are your biggest challenges in constructing homes to meet current energy codes?” were received.
Responses varied widely. In an attempt to summarize the breadth of responses, I would say they indicated that building more energy-efficient homes means the home building industry has to change, and change can be painful — particularly painful when the industry is producing at near capacity, labor and materials costs are rising, and both management and jobsite labor are in short supply. The 85% of respondents who indicated having challenges seemed to convey that the fast pace of building code changes is disrupting the design and construction of homes, and they are trying to sort things out.
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In December 2018, Home Innovations Research Labs fielded our Omnibus Survey of 300 U.S. home builders, which included dozens of questions from sponsoring manufacturers. We also included some of our own questions to gain insight into current building construction issues.
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It’s been about 30 years since Home Innovation Research Labs built the first Smart House prototype in Maryland research home park. The whole “smart home” concept has been on the verge of exploding in the market for decades, but along the way changing homes, demographics, technologies, and lifestyles have continued to evolve and caused wrinkles in the plans of companies and organizations bringing this technology to market.
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