As renovation contractors, staying on top of industry trends is crucial for attracting new clients and retaining loyal ones. Knowing which rooms homeowners prioritize when planning renovations can give your business a competitive edge, allowing you to anticipate client needs and streamline your services accordingly.

But how can this data directly impact your business? Let’s break down the significance of these trends and discuss actionable strategies contractors can employ to optimize their services, marketing efforts, and project management workflows.

1. Focus on Bathroom and Kitchen Renovations: Where Demand is Highest

It’s no surprise that bathrooms and kitchens take the top spots. Homeowners tend to prioritize these high-use areas because they directly impact the daily functionality and aesthetic appeal of a home. They also offer some of the highest returns on investment (ROI) when it comes to resale value.

How Contractors Can Capitalize:

Tailor Your Service Offerings: Since 50% of renovations involve bathrooms and kitchens, consider offering specialized packages or tiered service plans that cater to different budgets. For instance, offering high-end, mid-range, and budget-friendly options for kitchen and bathroom remodels can appeal to a broader range of clients, ensuring you capture both premium and cost-conscious homeowners.

Upsell Strategic Upgrades: In both kitchen and bathroom renovations, there are plenty of opportunities to suggest additional upgrades, such as energy-efficient appliances, luxury shower systems, or smart home integrations. By presenting these as cost-effective, high-ROI improvements, you can increase project value while aligning with the homeowner’s goals.

Streamline Documentation for Popular Projects: Since these two areas account for a large portion of your business, create standardized templates or workflows specifically for kitchen and bathroom renovations. This can include checklists, common material preferences, and pricing guides that help speed up both the planning and execution phases. Utilizing a construction project management software that allows for easy templating and tracking can reduce project delays and eliminate redundant communication.

2. Living Rooms and Bedrooms: Don’t Overlook the Rest of the Home

Living rooms and primary bedrooms combined account for 38% of renovation projects. While these areas may not bring the same ROI as kitchens and bathrooms, they are still key for clients looking to improve their living space’s comfort, style, or layout. These rooms often reflect personal style more deeply, making customization a significant factor.

How Contractors Can Capitalize:

Highlight Personalization and Design Expertise: Homeowners often seek out contractors who can provide a more customized, design-focused approach when renovating spaces like living rooms or bedrooms. Position your business as a collaborative partner by offering design consultations that incorporate both style and functionality. Use past projects as case studies to demonstrate your flexibility and creativity in these types of renovations.

Package Secondary Room Renovations: Offering bundled services that include living rooms or bedrooms along with kitchens or bathrooms can encourage clients to expand the scope of their project. For example, a “whole-home refresh” package that offers a discount on multiple rooms being remodeled at once can be an attractive option for homeowners aiming for a cohesive look throughout the home.

Use Visual Communication Tools: Living room and bedroom renovations often require more design tweaks and changes throughout the project. Implementing a platform that allows clients to easily visualize different layouts, material options, and progress can minimize miscommunication and improve satisfaction. With digital project management tools, you can provide real-time updates and share digital blueprints, making it easy for clients to track progress and make informed decisions quickly.

3. Basement and "Other" Areas: The Untapped Opportunity

Basements represent 8% of renovation projects, which might seem small compared to the other categories, but that number is growing as more homeowners look to maximize their usable space. Whether converting basements into guest rooms, entertainment centers, or home offices, there’s an opportunity here that many contractors may not fully capitalize on.

How Contractors Can Capitalize:

Market Basement Transformations: Many homeowners don't realize the potential of their basements until a contractor shows them what's possible. By marketing yourself as an expert in basement transformations—whether it’s finishing unfinished spaces or creating custom designs—you can differentiate your business and tap into a niche market.

Emphasize the ROI of Usable Square Footage: When talking to clients, highlight the value of increasing a home’s usable square footage. Finished basements, particularly those designed as multi-functional spaces, can add significant value to a home, especially as remote work and home-based activities continue to grow.

4. Leveraging Data for More Effective Project Management

Understanding these renovation trends isn’t just about adjusting your marketing efforts—it’s also about optimizing how you manage and execute projects. By predicting the kinds of renovations that will be most in demand, you can improve planning, resource allocation, and client communication.

How Contractors Can Capitalize:

Use Data-Driven Scheduling: If bathrooms and kitchens dominate your projects, adjust your scheduling to allow for quicker turnaround times on these types of renovations. Having dedicated teams or resources for bathroom and kitchen projects can reduce downtime between jobs and allow you to take on more projects without sacrificing quality.

Centralize Communication: A common challenge in managing multiple projects is the breakdown in communication—whether it’s between your team, subcontractors, or clients. Adopting a centralized platform for communication and documentation management ensures that everyone has access to the same information, reducing the risk of misunderstandings or mistakes.

Track Performance Metrics by Room Type: Consider using project management software to track the profitability and time-to-completion of different types of room renovations. By analyzing which projects are more profitable or quicker to complete, you can make data-driven decisions about which types of jobs to prioritize or how to price your services more effectively.

5. Digital Solutions: The Key to Unlocking Efficiency

Ultimately, as renovation trends evolve and client expectations increase, contractors who leverage technology will have a clear advantage. By utilizing construction project management software, you can organize renovation projects more effectively, keep clients in the loop, and ensure that your team is always aligned.

A platform like Property Vue can help with:

Document Management for Contractors: Keep track of permits, blueprints, and contracts in a digital format, making them accessible from anywhere.

Real-Time Client Collaboration: Enable clients to view progress, approve designs, and communicate seamlessly with your team.

Automated Workflows: Reduce administrative burden with tools that automate task assignments, notifications, and progress tracking.

These solutions allow you to stay organized, reduce project delays, and enhance client satisfaction, giving you more time to focus on what you do best—delivering high-quality renovations.

Conclusion

The data from the infographic gives valuable insights into where homeowner demand is highest. As a contractor, leveraging this information to optimize your services, market more effectively, and streamline project management can help you stay ahead of the competition. Whether you're focusing on high-demand kitchen and bathroom renovations or carving out a niche in basement transformations, aligning your strategy with these trends will ensure your business remains both relevant and profitable.

By pairing industry knowledge with the right digital tools, like Property Vue, contractors can improve efficiency, better meet client expectations, and ultimately grow their business.