In response, major new homebuilders have launched divisions or spun off related companies to break into the remodeling market.

"It’s helping employers keep good employees and keep good subs in business," says Brett Fix, who heads up Kaye Homes’ new Home Makeover Division, which launched in June.

Michael Peel, a co-founder of Gulf-stream Homes with his brother, Stephen, says remodeling made up less than 1 percent of Gulfstream’s business a few years ago. In the near term, he expects the remodeling division Gulfstream launched in September to account for close to 40 percent of revenues.

Gulfstream, like so many area construction companies, has had to respond to the housing-market slowdown with extensive layoffs, cutting its staff from 60 to 13 in 18 months.

When the new-home market sizzled, builders shied away from remodeling because it’s a much less certain business. As Trupiano puts it: "In remodeling, you expect to open up a can of worms. You don’t know what you’re going to get until you open up the walls."

It’s just those kinds of risks that prompt homeowners to turn to general contractors to manage remodeling jobs now instead of going it alone with subcontractors, says Albania Crosbie, general manager for Remodeling Solutions by Frey, a remodeling company Frey & Son Homes launched in July.

A scarcity of good land is prompting owners of luxury homes to stay in their current locations, she says, but people with older homes want professional-grade kitchens, home theaters and spa-like bath retreats featured in upscale new homes.

Makeover Mania
Home-makeover shows bombard TV viewers with fix-up ideas, and homeowners often itch for change. In the past, moving to a new home often made sense. But many owners can’t sell their current home for a price they want, so they have decided to stay put.

It’s not only a slow market that’s temporarily trapping homeowners in place—many homesteaded residents are locked in by the dramatic rise in property taxes they would face. This fall, state lawmakers were tackling the issue of portability—whether homeowners could take their Save Our Homes tax savings with them if they move. Current move-up homeowners aren’t likely to sell now if there’s a chance they will be able to take their low-tax status and apply it to a new home in the same county this year.

"People are finding it easier and better to accept the current home they have," says Fix.
Builders and subcontractors have recognized they need to meet customers where they are—in their existing homes.

Gulfstream hopes to tap its existing customer base of more than 700 homeowners to grow its remodeling business.

Fix says it’s a great time to remodel, while the building trades are slow.

"The construction slowdown in the market has definitely had an impact on the quality and quantity of subs," he says. High-quality subcontractors—those who couldn’t be had for remodeling jobs during the boom time—now rush to bid on renovation jobs.

"The subs are having a tough time right now. There’s no doubt they’re hungry," Peel says.

Homeowners can receive higher quality work at better prices and they can get the work done more quickly, Fix says.

Steven Miller, a vice president at the luxury builder London Bay Homes, is remodeling his own house. Remodeling was always part of his game plan because he wanted to stay in the neighborhood. But he considers his timing to be lucky given the favorable market. He adds that London Bay’s design company, Romanza Interior Design, is seeing more customers deciding against putting their home on the market, and choosing instead to update their current home.

For now, builders jumping into the remodeling market say the field doesn’t look too crowded yet, although they acknowledge every job comes with competition now. "Yes, there are a lot of people out there doing it, but I believe there’s still room," says Crosbie.

Fix says builders like the fact that remodeling is "plus-business." When the new-home market eventually recovers, he sees remodeling work providing an extra revenue stream.