Remodeling Cape Cod:
What’s the outlook for 2007?
We asked members of the Home Remodeling Cape Cod, The lsands & The South Coast Editorial Advisory Board to discuss the remodeling industry outlook for 2007 and to offer opinions on the latest trends. We also asked how this magazine might improve its coverage of the industry.
Some in the industry reported a slowdown in 2006. What was your experience?
Rob Padgett: I believe all of us in the below-one-million-dollar market have experienced a gradual slowdown in lead activity and project starts. I believe the slowdown in the home remodeling/renovation business can mostly be attributable to the overheating and consequentially overpricing of the existing house-for-sale inventory—both locally on the Cape and at least in our market, the Northeast.
Lyn Wilkinson: While the amount of leads has dropped this year, the quality and fit for our firm’s market niche has been excellent, and our sell ratio has improved. The clients are serious about buying versus shopping around.
Doug Bohannon: The first quarter was exceptionally strong and better than expected, even compared to the first quarter in 2005. In May and June, business did decrease. We are softer than 2005, but compared to year-to-date, we are not too far off, as a whole.
Sam Streibert: I am working with one less draftsperson than in previous years. The months of May and June were the quietest in my 22-year history.
Judy Rogers: There has been absolutely no slowdown in the landscape business.
What is the forecast for 2007?
Wilkinson: Sunny! Sorry, couldn’t resist. And I think it’s true. There is a new sense of optimism since the election, and I know of several remodeling firms who’ve enjoyed an up-tick in business recently. Coupled with a generally strong economy and reasonable interest rates, remodeling will remain steady, if not as irrationally exuberant as in previous years.
Padgett: The good news to the building industry is that the prices are starting to decline. Even though the diversion of the elections is past, I see a further loosening of the prices through this period but no action of magnitude on the real estate scene until the early spring of 2007. Once it loosens, the remodeling/ renovation business will once again kick into gear.
Rogers: We already have new accounts scheduled for the spring. Many regulars are requesting additional grounds improvements. We are interviewing new staff for the spring.
Bohannon: We do not expect to see a big improvement until the 2008 elections are over. We think that 2007 will be as steady as it is today. This is the pace we are going to see for some time.
Today’s buzzwords are “green” and “sustainable.” How much call has there been for green or sustainable remodeling/landscaping on the Cape?
Streibert: My clients are aware of these topics but are not sure they apply to their small project. To justify the added cost, it is felt that a whole house would have to be involved.
Wilkinson: In our firm, we think in shades of green—taking advantage of places where we can truly save energy or the environment and recognizing that not all green solutions are cost-effective yet. Conversely, we find our clients are a bit more black and white in their thinking. Either they care passionately and use green/sustainable/energy efficient as the primary buying criteria, or it’s not even a consideration.
Padgett: I can only speak to my customer, the Boomer. While they are a more intelligent class, and certainly one with a social conscience, most of their decisions are tied to budget considerations. “Green” and “sustainable” generally translate into more dollars. I haven’t had anyone get into a conversation, however slight, about “green” considerations.
Bohannon: For the most part, green materials are limited and not used too often. I do see that changing slowly. We have some contractors offering discounts to their customers if they utilize green products during the construction of their homes.
Rogers: It’s the route we need to take. Most folks know the words, but there are many interpretations and misconceptions. It is our job to educate.
We keep hearing that the baby boomers are coming to the Cape and presumably fueling the remodeling industry here, but we also see a fair number of Generation X-ers buying second homes here and remodeling them. What is your experience?
Bohannon: We see a lot of baby boomers with equity and disposable income moving to Cape Cod and a much smaller number of Gen-X buying second homes.
Wilkinson: Baby boomers are still the majority of our business, I think simply because they still have the most money. The Gen X-ers are just hitting their peak earning years. They may have funds to purchase a second home, but they can’t always stretch the money far enough to purchase professional remodeling services, too. And they are more apt to still be do-it-yourselfers, even for larger projects—able to exchange their lack of funds for sweat equity.
Padgett: Our customer is the retiring Boomer who either wants a second/vacation home or a home on the Cape he can retire to in the future.
Streibert: I do not see my clients grouped by these terms. I do see more soon-to-be-retired people who want to be sure their house will be adequate for full-time living.
Is Cape Cod becoming another Long Island?
Rogers: Parts, yes.
Padgett: Gosh, I hope not, because then we’d all have to become Yankees fans.
Bohannon: Not even close!
Streibert: A dubious comparison, at best. This would be a rant against McMansions, I suppose.
Padgett: On the building industry front, I’d have to say no. The Cape has—whether good or bad—too many regulatory controls in place to ever allow things to get out of control. Price of the product in both places will eventually be comparable but for different reasons: Long Island because of ease of access to New York City; Cape Cod because—well—it’s Cape Cod.
Bohannon: Within the last 20 or so years, vast changes have not occurred. I do not see people leaving because of overcrowding.
Wilkinson: A hundred-plus years ago Mark Twain said, “Buy land, they’re not making it any more.” And he was right. Cape Cod is an extraordinary and desirable place to live—full or part time. It just seems logical to me that more people in the world means more people wanting to live in extraordinary surroundings. And having the means to do so. The challenge for our local, state and federal governments is to prioritize affordable housing in our communities and acknowledge and preserve the interdependence of the workforce and second homeowners.
How can this magazine improve its coverage of the remodeling industry on Cape Cod and the Islands?
Wilkinson: How about some people? Dozens of trades, suppliers and professionals are typically involved in even a small remodeling project. From the estimator at the lumberyard to the foreperson of the cleaning crew at job’s end, each performs a crucial function necessary for the satisfactory completion of a project. Many consider themselves artists in their trade, and most bring high professional expectations of themselves and us. The designers and the contractors may get most of the glory, but without the plumber . . .
Bohannon: Your magazine gives excellent insight about products, supplies, contractors and builders. It is very eye-pleasing and reads easily. It represents the area fairly. It does not just show Cape Cod as having beautiful beaches. It also displays high-quality stone walls and masonry work.
Streibert: Topics I would suggest include renovations to ranches that do not tear them down, adding dormers to one-story Capes, break down and explain the typical permitting process in an informative way, simple decorative touches that can be applied, such as cupolas, carriage-type garage doors and bay windows.
Rogers: A landscaping article on what does “green” and “sustainable” mean as it pertains to Cape Cod.
Padgett: I believe most of the customers who are entering the remodeling/ renovation experience for the first time are entering the experience with wrongly perceived expectations. These expectations have evolved from television shows where everything always seems to glide without delays, overruns, changes, et cetera. Industry advertisers also feed the misperception by exclaiming how easy things are to do—“Why, you could even do them yourself.” In other words, I believe, albeit in a tactful way, the industry’s side of the experience could also be presented. Sometimes the customer is the problem. After all, they are a partner in the relationship and also have to put out an effort to make the outcome a win-win for all. n
This is an edited transcript.
Douglas Bohannon is president of Mid-Cape Home Centers. Rob Padgett is owner of Padgett Builders in Cotuit and president of the Home Builders and Remodelers Association of Cape Cod. Judy Rogers is co-owner of Art in Green, a landscaping company in Brewster. Sam Streibert is principal of Streibert Associates Architects in Chatham. Lyn Wilkinson is co-owner of Wilkinson Design and Construction in Harwich and president of the Cape Cod Chapter of the National Association of the Remodeling Industry.
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