Trends and Opportunities in the U.S. Basement Remodeling Market

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Trends and Opportunities in the U.S. Basement Remodeling Market

  1. 1. Get more info on this report!Trends and Opportunities in the U.S. Basement Remodeling MarketNovember 1, 2008The basement remodeling market grew 2007-2008 despite slowing economy andhousing downturn. And, this niche market segment is projected to continue growing.Basement remodeling projects face particular challenges - each identified and exploredin depth in this new report from SBI. Innovative new products are sparking new trends inthis traditional remodel arena.Trends and Opportunities in the U.S. Basement Remodeling Market provides acomprehensive examination of basement finishing trends in the United States as relatedto uses, challenges, expenditures, customer base and preferences, and the vendorsand products that serve this market.It examines the composition and strength of the market by looking at the manycomponents that are indicators of its potential size and activity. These componentsinclude, but are not limited to, the number of existing homes that have basements, theaging of existing housing stock, home improvement expenditures, homeownerremodeling trends and the average cost of a basement remodel job.On the basis of these and other data, SBI estimates the size of this market from 2005 to2007 and forecasts growth from 2008 through 2012 (Chapter 2). In addition, this reportdiscusses in detail major factors that help to explain recent growth patterns as well asthose expected to affect the growth or decline of the market through 2012 (Chapter 3).In the ever-greening climate of thinking, the fact that finishing a basement makes iteasier to heat the house in the winter and cool in the summer, which adds up to energysavings, a not insignificant consideration as energy prices escalate. So who are the endusers for basement finishing projects and what do they use their upgraded lower levelsfor? Chapter 7 answers these questions.MethodologyReport data were obtained from government sources, including the U.S. Department ofCommerce, U.S. Census Bureau, U.S. Department of Housing and Urban Developmentand U.S. Bureau of Economic Analysis; trade associations such as the NationalAssociation of Home Builders (NAHB), the National Association of Realtors (NAR) and
  2. 2. the Home Improvement Research Institute (HIRI); Harvard University’s Joint Center forHousing Studies (JCHS); interviews with and websites of home improvementcontractors, manufacturers and dealers; industry analysts and print and online businessand trade journals.Consumer demographics and spending trends derive from data compiled by SimmonsMarket Research Bureau, New York, NY. Each year Simmons surveys a large sampleof adult consumers about their buying habits. Simmons’ surveys, conducted throughmail-in booklet questionnaires, draw on a large and random sample of consumers whorepresent a statistically accurate cross-section of the U.S. population. The Spring 2008survey cited in this analysis is based on a sample of 24,581 adults representing112,843,000 households who completed questionnaires over the October 2007 throughJune 2008 period.TABLE OF CONTENTSChapter 1: Executive Summary Scope of the Report Methodology Composition of the Market Basements—the Big Picture Table 1-1: Type of Foundation in 1-Unit Buildings in 2007 (numbers in 000s) The Aging of the Nation’s Housing Stock Table 1-2: Number of U.S. Housing Units 50 or More Years Old (numbers in 000s) Where Are the Basements?—Northeast and Midwest Table 1-3: Type of Foundation in New One-Family Houses Completed in 2007, by U.S. Region (number of houses in 000s) Home Improvement Expenditures Track Home Sales Table 1-4: Total U.S. Home Improvement and Maintenance and Repair Expenditures and Percentage Change, 1998-2008E (in billions of dollars) Basement Finishing Market Size and Growth Professionals vs. Do-It-Yourselfers Average Basement Remodel Cost Table 1-5: Average Cost of a Basement Remodel Job by a Professional Contractor, 2003-07 Households Remodeling Basements, Attics or Garages Using a Contractor Table 1-6: Number of Households Remodeling Basements, Attics or Garages with a Contractor, 2003-08 Households Remodeling Basements Using a Contractor Table 1-7: Percentage of Households That Remodeled Basements, 2005-2007 Table 1-8: Number of Households Remodeling Basements with a Contractor, 2005-07 Professional Basement Finishing Market
  3. 3. Table 1-9: U.S. Professional Basement Finishing Market, 2005-07(in billions of dollars) U.S. Market Forecast Table 1-10: Forecast U.S. Professional Basement Finishing Market, 2008E- 2012F (in billions of dollars) Trends Impacting Market Growth New Home Sales Plummet Figure 1-1: Annualized U.S. New Single-Family Home Sales by Region, January 1997-July 2007 (in thousands of units) Existing Home Sales Down to a Lesser Degree Figure 1-2: Annual U.S. Existing Home Sales by Region, 1997-2007 (in thousands of units) Regional Housing Conditions Support a Healthy Basement Finishing Market Table 1-11: Percent of Housing Units Built During or Before 1939, by States with a Higher Percentage Than the Average for All U.S. Housing Units The State of the Economy Modest Real GDP Growth of 1.1% Forecast for 2008 Figure 1-3: U.S. Current-Dollar GDP vs. Real GDP, 2002-08E (in trillions of dollars) Figure 1-4: Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-08E (%) Experts Predict Downturn in Home Improvements Table 1-12: Remodeling Market Index (RMI) for Selected Quarters, 2001-2008 SBI More Bullish on Basement Finishing Market Basement Improvement Challenges Product Innovations The Supply Side and Company Profiles The Buy Side—The End User Young Families Lead the Charge for Finished BasementsChapter 2: Market Size and Growth Methodology Composition of the Market Basements—the Big Picture Table 2-1: Type of Foundation in 1-Unit Buildings in 2007 (numbers in 000s) Figure 2-1: Type of Foundation in 1-Unit Buildings in 2007 (numbers in 000s) The Aging of the Nation’s Housing Stock Table 2-2: Number of U.S. Housing Units 50 or More Years Old (numbers in 000s) Where Are the Basements?—Northeast and Midwest Table 2-3: Type of Foundation in New One-Family Houses Completed in 2007, by U.S. Region (number of Houses in 000s) Home Improvement Expenditures Track Home Sales Table 2-4: Total U.S. Home Improvement and Maintenance and Repair Expenditures and % Change, 1998-2008E (in billions of dollars) Table 2-5: U.S. Home Improvement and Maintenance and Repair Expenditures by Type and % of Total, 2003-2008E (in billions of dollars)
  4. 4. Basement Finishing Market Size and Growth Professionals vs. Do-It-Yourselfers Average Basement Remodel Cost Table 2-6: Average Cost of a Basement Remodel Job by a Professional Contractor, 2003-07 Households Remodeling Basements, Attics or Garages Using a Contractor Table 2-7: Number of Households Remodeling Basements, Attics or Garages with a Contractor, 2003-07 Households Remodeling Basements Using a Contractor Table 2-8: Number of Households Remodeling Basements with a Contractor, 2005-07 Spring 2008 Numbers Confirm Trend Professional Basement Finishing Market Table 2-9: U.S. Professional Basement Finishing Market, 2005-07 (in billions of dollars) Figure 2-2: U.S. Professional Basement Finishing Market, 2005-07 (in billions of dollars) Conservative Estimate of the Overall Basement Finishing Market Table 2-10: Percentage of Homeowners Working Independently (DIY) on Remodeling Projects, 2005-2007 Table 2-11: Percentage of Homeowners Planning to Hire A Professional for Remodeling Projects, 2005-2007 Putting Professional and DIY Basement Refinishers Together U.S. Market Forecast Table 2-12: Forecast U.S. Professional Basement Finishing Market, 2008E- 2012F (in billions of dollars) Figure 2-3: Forecast U.S. Professional Basement Finishing Market, 2008E- 2012F (in billions of dollars)Chapter 3: Trends Impacting Market Growth The Housing Market and Its Impact on Residential Improvements New Home Sales Plummet Figure 3-1: Annualized U.S. New Single-Family Home Sales by Region, January 1997-July 2007 (in thousands of units) Existing Home Sales Down to a Lesser Degree Figure 3-2: Annual U.S. Existing Home Sales by Region, 1997-2007 (in thousands of units) Regional Housing Conditions Support a Healthy Basement Finishing Market Table 3-1: Percent of Housing Units Built During or Before 1939, by States with a Higher Percentage Than the Average for All U.S. Housing Units The State of the Economy Modest Real GDP Growth of 1.1% Forecast for 2008 Figure 3-3: U.S. Current-Dollar GDP vs. Real GDP, 2002-08 (in trillions of dollars) Figure 3-4: Percentage Changes in U.S. Current-Dollar GDP, Real GDP and the GDP Price Index, 2002-08E (%) Home Improvement Suppliers Also Suffer
  5. 5. Experts Predict Downturn in Home Improvements Table 3-2: Remodeling Market Index (RMI) for Selected Quarters, 2001-2008 SBI More Bullish on Basement Finishing Market The Universe of Basements If You Can’t Sell, Remodel Table 3-3: Basement Remodel Cost and % of Cost Recouped, 2003-07 The Cocooning Effect Young Family Needs Product Innovations Make Basement Finishing More Appealing Suppliers Are BullishChapter 4: Basement Improvement Challenges Water, Water, Water—the #1 Challenge for Basements Sources of Moisture and How to Correct Them Dehumidify or Moisture Will Return Insulation Foam-Based Insulation Counters Moisture Conditions HVAC Requirements Ventilation Mechanical Ventilation Top Choice for Basements Radon—the Disguised Threat Windows—Let the Light Shine In Artificial Lighting Other Considerations with Artificial Lighting Concealing Ductwork and Wiring Meeting Code—Check It Out Early in the Planning StageChapter 5: Product Innovations: Fueling Growth in Basement Finishing Prevention of Water Intrusion Polymer-Based Waterproofing Membranes: Mar-flex Fusion Gray™ Cement-Based Waterproofing: Thoroseal® and Thoroseal® Foundation Coating Exterior Foundation Drainage System: Form-A-Drain™ Exterior Foundation Drainage System: Mar-flex Drain-A-Way™ Interior Foundation Drainage System: WaterGuard Trench Drain: Multi-Flow Diverting Roof Runoff: FLEX-Drain® Sump Pumps: PeakFlow Pumps Ventilation and Humidity Control Ventilation: Humidex Dehumidification: SaniDry™ Basement Air System Portable Dehumidification: Danby® Radon Mitigation New Construction: Form-A-Drain™ Retrofitting a Basement: HomeAire Heating and Air Conditioning Ductless Heating and Cooling: Comfort Series Through-the-Wall Heat Pumps: Wallmaster® Direct Vent Fireplaces: Monessen Hearth Systems
  6. 6. Drywall DensArmor Plus® 528 Mold Defense™ Comfort Guard™ Insulation Exterior and Interior Foam Panels: FOAMULAR® and INSULPINK® Fiber Glass: DryRight™ Spray-Applied Foam: Heatlok Soy® Floor Materials Fiberock® Brand Aqua-Tough™ Underlayment VersaShield® Underlayment Endurance Vinyl Plank Natural Fusion Vinyl Sheet Flooring Rust-Oleum Basement Floor Coating and Stain Ceiling Finishes Ceiling Panels: Luna ClimaPlus™, Cheyenne, and Astro™ ClimaPlus™ Suspension Grid: DONN® Brand AX™ Ceiling Tiles: Metallaire™ Windows and Doors Awning Windows: Vinyl by Pella® Glass Block® Window Wells: stakWEL® and ScapeWEL Basement Doors: Ultra Series Lighting CFL Downlights by Cooper Lighting MR 16 and Trac 12 by Juno Lighting Group® EgressLite™Chapter 6: The Supply Side and Company Profiles Owens Corning Basement Finishing System Owens Corning Basement Finishing System—the Product Franchise Network—the Lifeline of the Business Cost and Warranty Installation Total Basement Finishing (TBF) The Total Basement Finishing System TBF Basement Wall System TBF Basement Floor Finishing TBF Basement Ceiling Tiles Basement Window and Enclosure System Major Competitor Cost and Warranties Installation Impressive Basement Systems Impressive Basement Systems Wall Panels Ceiling and Floor Choices Cost and Warranties
  7. 7. Installation The Basement Tuxedo The Basement Tuxedo Wall Panels Cost and Warranties Installation Designer Basements by Temo Designer Basements Wall Panels Solid-Panel Surface Thermal Panel Core Panel Back with Built-In Microban® Protection Panel Attachment System Cost and Warranties InstallationChapter 7: The Buy Side—The End User Demographics Methodology Young Families Lead the Charge for Finished Basements Males, Whites and Hispanics Lead in Remodeling Those with Advanced Degree Most Likely to Remodel Remodeling Diversity Among Occupational Groups Higher Income Households More Likely to Remodel Number of Employed Adults in Household Affects Remodeling Decisions Basement, Attic and Garage Remodels Top Priority for Homeowners Mixed Picture on Remodeling by Value of the ResidenceAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1927314US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004

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