NKBA members “are excited about what is happening in the market,” the executive reports. By Loren Kessell
NKBA CEO Bill Darcy appeared on “After The Bell” on the Fox Business channel on Monday evening, where host Melissa Francis asked him about the effect of rising mortgage rates on home sales, and low confidence levels among home builders, reported by the National Association of Home Builders (NAHB).
According to NAHB, only 13% of adults plan to purchase a home in the next year. Yet, the remodeling business is still fairly strong, Darcy said. “Our members are still happy with the growth they’ve seen, and they expect continued growth.
“Homeowners are generally staying in their homes longer. The housing trend is moving toward remodeling, and consumers are looking to improve their spaces either to sell or to improve them because they want a nicer place because they’re going to stay there,” he added. “In the remodeling space, you’re seeing a lot of investment.”
Asked about rising interest rates, he pointed out that NKBA research reveals that about 75% of kitchen remodels are paid for with cash, so interest rates are not impacting remodeling as much.
But, Francis noted, potentially problematic for the remodeling business is the well-documented skilled labor shortage, in relation to housing and the K&B industry.
“The labor is the bigger issue,” Darcy concurred, noting jobs are taking longer and costing more without a robust skilled labor pool. “Attracting young people to the industry is a big challenge. We want to help younger people understand the lucrative careers that are happening in our industry. But labor is the biggest concern in our market.”
For the full interview, click here.
