Experts from John Burns Real Estate Consulting discussed current impacts of COVID-19 on the housing and remodeling markets and supply chains in Episode 2 of NKBA Live — Brave New Business. By Dianne M. Pogoda

 

New-home sales, which are a significant indicator for many factors impacting the kitchen and bath design and remodeling businesses, have been severely reduced by the coronavirus pandemic — to some 15% of what they were five weeks ago. And while about 14% of remodeling projects have been cancelled since statewide lockdowns began in mid-March, the good news is that the remodeling sector will rebound much more quickly, once homeowners can get contactors to come back into their homes.

These were among the insights shared in “What We Know So Far — The Impact to Housing, Remodeling and Supply Chains,” the latest episode of NKBA’s continuing online series “Brave New Business.”

NKBA CEO Bill Darcy hosted John Burns, founder of the highly respected John Burns Real Estate Consulting firm, and his colleagues, Todd Tomalak, principal, and Steve Basten, senior manager of building products, in a discussion about the latest impacts of the COVID-19 pandemic on housing, remodeling and supply chains, as well as what they anticipate as part of the recovery and the state of consumer confidence.

Burns said lower-ticket projects are more likely to be cancelled, as are projects from clients who are younger, perhaps first-time homeowners. Older homeowners, who are generally more established and who have more equity in their homes — as well as more assets at their disposal — are more likely to merely postpone projects until the current situation has passed.

To watch Episode 2, view the video below.

Brave New Business will be hosted live on Thursdays at 2 pm (Eastern Time) and feature thought leaders across all segments of the business in a free online forum. They’ll cover topics of critical interest to kitchen and bath design, remodeling, manufacturing and distribution, as well as survival tactics for small businesses and independent operators. These discussions will share best practices, experiences and advice, and serve as networking opportunities.

This Thursday, April 16, Brave New Business will explore “Weathering the Storm: Navigating the Stimulus Package.” Darcy will be joined by financial experts David Murphy, Senior Vice President of Investments, and James Jack, Executive Director of Strategic Client Segments, both from UBS Wealth Management.

To register for this forum, click here, and to submit questions for the forum, visit NKBA’s social channels or email info@nkba.org.