This week marks an exciting milestone as we participated in the first day of the Joint Center for Housing Studies of Harvard University’s Remodeling Futures Steering Committee Spring meeting. Being in the room with economists, researchers, industry leaders, remodeling business owners and materials suppliers reaffirmed the importance of our role—not just as remodelers, but as thoughtful stewards of the future of housing.
One key topic of discussion was the impact of tariffs on remodeling. As members shared their experiences and case studies, the consensus was clear: we anticipate material costs to rise by 3–5% as a result of current tariffs. While that’s not insignificant, it’s notably lower than the consumer-perceived increases of 10–20%.
This disconnect presents a powerful opportunity—and responsibility—for us. Consumers are understandably wary, and it’s up to us to be the voice of reason. We must offer facts, comfort, and transparency. Honest conversations about cost drivers and realistic project planning will help rebuild trust in an uncertain market.
Strategies for Managing Rising Material Costs
As material costs shift, so must our approach. Here are a few strategies remodelers are using to keep projects efficient and clients confident:
Early Purchasing and Storage: Where possible, securing materials early—especially those most impacted by tariffs—can prevent cost spikes mid-project.
Transparent Pricing Conversations: Clear communication about what’s included in the estimate and what may be affected by volatility builds trust and reduces surprises.
Alternative Materials: Exploring cost-effective alternatives that maintain quality and aesthetics can help offset increases. Reclaimed, locally sourced, or composite materials are gaining popularity.
Bundled Projects: Encouraging clients to combine multiple updates into one project can reduce per-unit labor and delivery costs, increasing efficiency.
Strong Supplier Relationships: Loyal partnerships with suppliers often result in priority pricing and advance notice of pricing changes—giving remodelers a crucial edge.
Calming Consumer Fears: Be the Voice of Reason
When consumers are bracing for 10–20% price hikes, reassurance becomes just as important as craftsmanship. Here are a few ways we can help calm their fears:
Educate with Confidence: Let them know the facts. Share that most professionals are seeing 3–5% increases—not the double-digit jumps they might fear.
Focus on Value, Not Just Price: Emphasize the long-term return on investment—improved functionality, increased home value, and personalized comfort.
Offer Flexible Planning: Be open to phased approaches or scope adjustments. Giving clients options helps them feel in control.
Highlight Transparency: Walk clients through the estimate and where dollars are going. Transparency builds trust—and diffuses anxiety.
Share Success Stories: Case studies and testimonials from recent clients who navigated the process with confidence can go a long way in calming concerns.
Leveraging Financing to Empower Your Clients
Another key insight from our conversations at the Steering Committee meeting centered on financing as a tool to reduce project cancellations and boost client confidence.
Helping customers understand how financing works—and how it benefits them—can shift the remodeling conversation entirely:
Sell the Payment, Not the Price: When you frame a $30,000 remodel as a manageable monthly payment rather than a lump sum, the project feels more attainable.
Reduce Cancellation Risk: Clients are more likely to commit when they see an affordable path forward. Financing alleviates the upfront cost pressure that often leads to postponed or canceled projects.
Make Financing a Revenue Generator: By offering financing options, remodelers open the door to larger project scopes and more frequent upgrades. Customers can dream bigger—and you can sell smarter.
Build Trust Through Simplicity: Be prepared to walk your clients through the process. Partner with financing providers who offer fast approvals, transparent terms, and homeowner education materials.
The more we normalize financing in remodeling, the more we unlock potential—for both clients and contractors.
Perhaps the most inspiring moment of the day came during a conversation about where we’ll be in the next 10 years. The outlook was resounding: remodeling is the business you want to be in. With aging housing stock, shifting demographics, and increasing demand for personalization, the industry is positioned for resilient, long-term growth.
We’re proud to be shaping this future together, one insight—and one remodel—at a time.