3 Home Improvement Microtrends We’re Watching in the Home Buying, Renovation Space

Todd Morgano | Nov. 1, 2024

It’s tough out there – for people buying or renovating homes and the companies trying to sell to them. We know the story. Everything’s up. Home prices. Mortgage rates. Labor. Building supplies and home furnishing products.

Inflation-weary consumers are tapped out and frustrated, and the companies serving them are hunkering down and tightening their budgets. There doesn’t seem to be much joy in the housing market right now. But if you look a little deeper, past the doom and gloom, there are some green shoots rising from the ashes.

Here are three microtrends we’re watching within the housing market and home improvement industry that could provide savvy companies with an opportunity to advance their growth in these tumultuous times.

1. The Rise of Smaller-Scale, Multi-Phase Home Renovations

With high costs and supply chain issues, many homeowners are opting for smaller, phased renovations rather than full-scale projects. Instead of gutting a kitchen or bathroom all at once, consumers are upgrading piece by piece – replacing countertops first, then tackling cabinets months later when they have the funds or when products are available.

Opportunity for Companies:

Companies can think about how to either create or position their products to better align with a modular, phased approach to renovating. Can you alter products to offer more flexibility or demonstrate how your existing products work well in phased renovations?

For example, let’s say you manufacture cabinets. Do you offer or promote interchangeable fronts, easily upgradable fixtures, add-on lighting, or other features that cater to consumers who are renovating gradually?

You might also look at offering and promoting more flexible finance options tailored to smaller, continuous purchases, or even subscription services for ongoing house upgrades that could appeal to homeowners managing phased projects.

You might also provide homebuyers and renovators with useful information about how to plan phased-in projects, such as online tools or apps that help them design and visualize multi-phase renovations. Lending a helping hand and becoming a trusted resource for something homeowners are already grappling with will build trust in your brand and keep potential customers engaged with you over the long term.

2. Emphasize Resale Value and ‘Return on Investment’ Renovations

Common wisdom is that people usually decide to renovate their homes for a couple of main reasons: either their home is getting older, and things are starting to wear out, or they want to create a new look within their home that matches their lifestyle or aesthetic.

Today there’s another factor dominating these decisions – economic prudency. Inflation has taken a toll on most Americans. Paychecks aren’t going as far as they once did, and people may hesitate to spend money on their homes because of the financial outlay.

However, if renovations are seen as investments that boost the value of their home, homeowners can make choices that are more strategic rather than purely driven by personal style.

Opportunity for Companies:

It’s natural to lean into your products’ features and styles. But given the circumstances, it could be wiser to sharpen the focus on their ROI (Return on Investment).

Value-minded customers, and those looking to sell or flip homes, are likely to respond well to a demonstration of how specific products add to a home’s value.

Provide data, case studies, or ROI calculators that show potential value increases tied to particular products and remodeling projects. Some obvious examples are energy-efficient windows or durable, stylish flooring, appliances, lighting and plumbing. Even modern paint and design trends can add to the resale value of a home.

You might be able to drill into an untapped market by positioning your products as “value-boosters” for future home sales.

3. DIY-Friendly Products with Pro-Level Results

There’s a notable DIY movement among millennials, partly driven by cost savings and partly by a desire for customization. At the same time, today’s DIYers are looking for products that offer professional-level results without the professional-level price tag.

Opportunity for Companies:

Now may be the time to lean more heavily into how easy your products are to install for DIYers and how even novice DIYers can achieve the professional results they’re seeking without having to hire a professional. Think peel-and-stick backsplash tiles, modular flooring, or plug-and-play lighting.

Oh, and you know these DIYers will likely be nervous about taking on home improvement projects without professional help. So be the professional help. Offer classes. Provide video tutorials, 3D modeling tools, and robust customer support that empower DIYers to achieve great results. Don’t just sell them a product. Help them achieve their vision by holding their hand all along the way.

You also don’t have to shoulder the entire burden of educating consumers. By fostering community and content sharing, you can turn your customers’ experiences into peer-to-peer tutorials to inspire and help the new customers you’re onboarding. It’s also a great way to boost brand engagement.

Find the Opportunity in Challenging Times

In all times, but especially in times when the business climate presents unusually difficult challenges, it’s important to look in unusual places to uncover opportunities that others might not see. That can be your killer advantage: identifying and responding to microtrends that fuel growth while others batten down the hatches and wait for market conditions to improve.

If you want to chat more about ways to adopt this thinking into your business and marketing plans, reach out. Some of our best ideas begin with a simple conversation among people with inquisitive minds.