Post-Recession Design Preferences

In the fall of 2008, as the financial crisis played out, many remodeling clients put projects on hold. Today those clients, many with projects still on hold, feel distinctly less well off. They have seen the value of their homes depreciate 10, 20 or even 30 percent while fluctuations in investments have similarly clipped their net worth.

Somewhat battered, many prospective clients are dusting off their plans and getting back to the drawing board. But they have changed, and their budgets are likely scaled back. If their 2008 budget for a new kitchen was $100,000, they may spend only $75,000 this time around. And, say four leading kitchen and bath designers who shared their market insights with Qualified Remodeler, clients are taking their time and being more deliberate through the design and product-selection process. The overriding goal is value, guided by a professional they trust.

“Clients are more cautious today. I think there has been a genuine loss of trust across our nation in all business sectors. The consumer today is not as willing to simply trust their design professional,” says Ellen Cheever CMKBD, ASID, of Ellen Cheever & Associates, Wilmington, Del. “They want to cautiously consider each part of the project to ensure that they are getting the best value. The client wants more time to make the decision to move forward. Secondly, there is much more attention to the total investment figure. Even with clients that can invest whatever they would like to, there is a more careful sense about what is a reasonable number.”

Interviewed separately, designer Ann M. Morris, CMKBD of Allied Kitchens & Baths in Fort Lauderdale, Fla., echoed Cheever’s point without prompting.

“Consumers are savvier now. And trust is on top. Money is down at the bottom,” explains Morris. “Yes, they are being more conservative with their money, but they are picking the right person to do the job. It is not about somebody saying ‘I have $100,000 but I am only going to spend $50,000.’ If they trust you, there is a way of taking that $50,000 and saying, ‘We are not going to use that high-end paint. We are going to change from cherry to alder. We are going to do accents of a glass countertop instead of a full glass countertop.’ They get conservative, but they still want the value. They still want the look. And the trust has to be there. They’ve got to know you are making the right decisions for them.”

Project size has not been an issue with the clients that Mick De Giulio of de Giulio Kitchen Design in Chicago has been seeing of late. But the desire for a quality project is certainly greater, he says.

“I think there is even a stronger desire for value. I think people now want to do the best possible project in terms of quality. People turn to quality during tougher times. I think that if people are really going to do something, there is a tendency now to do it very well in all ways. We are not seeing people trying to shave corners. I see people who want a great value.”

Consultant and NKBA educator Les Petrie, CMKBD, who designs kitchens for clients in the mid-Atlantic region is seeing a mixture of consumer sentiments in the wake of the financial crisis and recession. At the lower end of the project spectrum, customers are investing in one or two key areas that they value most, while trading down in others. At the higher end, Petrie echoes De Giulio’s sentiment. Customers (mostly in the urban areas) are coming back to the market with undiminished wallets and even stronger aspirations.

“In the urban areas, it is not uncommon for requests very similar to what we saw three and four years ago, where money is no object,” says Petrie, who lives in North Carolina’s Outer Banks, but hails from Pennsylvania, where he still sees customers. “Many people sat on the sidelines for awhile, and they realize that even though we may be facing 10 percent unemployment, they are not unemployed. They still have the resources and the wherewithal. People, after awhile, get tired of being told that things are bad. So I think the cliché is that they are sick and tired of being sick and tired. And I think they are doing it by spending the resources that they have held in reserve for the last couple of years.”