National News: Remodeling Wow Is It Important to the Local Economy!

By Elliot Eisenberg, Ph.D., NAHB Senior Economist

While I often give presentations to builders and politicians about how important new home building is to the local economy, last month I had, for the first time, the pleasure of extolling the many virtues of remodeling and how important it is! The event was the summer meeting of the Remodelers of Central Illinois held at the offices of the Home Builders Association of Peoria and I was the invited speaker.

Rather than just plow through an endless supply of slides with graph after graph, as economists generally do, I began by first explaining how important residential construction is to the local economy. I then proceeded to compare it to remodeling activity. By the end of evening everyone was far more appreciative of what remodeling does for the local economy.

First, just like new construction, remodeling injects a tremendous amount of money into the local economy. Whether you build a $300,000 house or do a $300,000 remodeling job, both put money into the hands of local tradesmen (in the form of wages), local suppliers (in the form of purchases), and local governments (in the form of permits and sales taxes). And, once in the economy, that money creates a ripple as it passes from person to person. For example, a tradesman may spend part of his paycheck at a local restaurant. The waitress may then spend some of that money to get her car fixed and the mechanic may spend part of his income going to a chiropractor. While these transactions may be small, together they add up.

On average every $100 million of remodeling work creates 430 full time jobs, $2.9 million in local taxes and $47.7 million of local income. But don’t forget the ripple effect.  It creates 350 more jobs, $2.8 million more in taxes and another $22 million of local income. Combined, the two phases result in 780 jobs, $5.7 million in taxes and $67.7 million in local income!

Thought of another way, every 10 jobs created during the remodeling phase leads to eight more jobs during the ripple phase while each dollar of tax revenue generated initially creates another tax dollar due to the ripple. Finally, every dollar of local income from the first phase creates 46 more cents of local income courtesy of the ripple.

Lastly, while new construction almost always results in a permanent boost to the local economy, there may well be a permanent boost from remodeling too. If the remodeling activity results in an addition to the structure then its taxable value rises and the flow of property taxes to all local governments rises.

After the presentation a very lively question and answer session that lasted well over an hour ensued. A number of very thoughtful questions were asked showing there is a real thirst for this knowledge. It was also clear that those in attendance left far more able to articulate how and why remodeling matters so much. I was gratified to have connected with the audience and hope to have another chance to address a group of remodelers soon.

Elliot Eisenberg, Ph.D. is a Senior Economist at NAHB. He can be reached at 800-368-5242 x8398. He loves hearing from remodelers and builders, and hopes to visit your Remodelers Council in the near future.

National News: Practical Stategies for Green Marketing

Leading a seminar at the NAHB National Green Building Conference earlier this month in Dallas on “Practical Strategies for Green Marketing,” Jim Groff, president of the York, Pa. firm Baublitz Advertising, offered some ideas on how green builders and remodelers can become a dominant force in their marketplace.

1. Know your stuff, he said. “Confused people don’t buy,” Groff said, and successful green builders and remodelers cut through that confusion by positioning themselves as a source of knowledge. That doesn’t mean that every builder must be an expert in all aspects of green design and construction, any more than a successful Little League coach must be an expert on the rules of baseball. “You don’t need to know everything. You just need to know more than the kids,” he said. That said, builders should know where to get the information they need – and start with NAHB. “Be a good student to be a good teacher,” Groff said.
2. Make sure that you have a written communications plan for your company that includes an assessment of the overall market, target audience, the effect of trends, what media to use, a message and a timeline. “You can’t be all things to all people,” Groff said.  A written plan also ensures that expectations are clear and that the builder can gauge whether the plan is achieving its goal. “What is your objective? Do you want people to visit your Web site, or attend a seminar?” he asked. When hiring an outside firm, expect to pay between 2% and 5% of total sales on marketing and media, he said. “Every expenditure is like tuition. You learn from your mistakes,” Groff said.
3. Make sure the message you choose differentiates your business from the competition. The message, Groff said, “has to be more than about quality or green. It has to be unique, meaningful and credible. If it doesn’t mean anything to your target market, it doesn’t mean anything.” One good selling point is value, he said. Builders cannot promise energy savings but they can talk about features that can help achieve it. “Even smart people often need you to connect the dots,” he said.
4. Make sure your customers understand the importance of your credentials and certifications, including the Certified Green Professional designation, an NAHBGreen-certified home or a Green Approved building product. “If you’ve got it, flaunt it, Groff said. Even if it’s true that in 10 years everyone will be green, it’s still an advantage for now. “Use it for the next 10 years,” he advised.
5. “Fish where the fish are,” said Groff. So-called “dark green” home buyers still trend toward being affluent, well-educated, married and 40-ish. “Medium green” buyers are looking for hope, convenience and prevention of possible health issues or high energy prices. “Light green” buyers are driven mostly by self-expression and status, he said. “Qualify your prospects. Listen more than you tell,” he added. “You don’t know what their hot buttons are if you are doing all the talking.”
6. Choose tactics that are right for your target audience – and also your budget. First, all corporate identity materials – truck logos, uniforms, the Web site – should be “professional and consistent,” he said. Beyond that, take advantage of public speaking engagements, social networks such as Facebook, home parade and expo participation, e-newsletters and other means “as frequently as you can give folks meaningful information,” and establish yourself as the expert they seek.
7. If you decide to hire an advertising or public relations agency, shop around, Groff said. Make sure that work samples are the product of people who are currently on staff; also, share your budget and discuss expected results. “Look for compatibility, clear dialogue; find someone you trust, and take their advice,” he said.
8. Don’t overpromise. “Speak the truth” about energy-efficiency claims or possible health benefits, Groff said. “Never greenwash, because all of us will lose.” All builders and remodelers who are going green are “growing” the category – but early adaptors will get the earliest benefit. Once the market returns, “growth will benefit the category leaders,” and that’s likely to be green builders, Groff said.

National News: Universal Design, Green Remodeling Have Joint Appeal to Baby Boomers

From ReNews, NAHB Remodelers

A remodeling project that combines universal design and green remodeling can be a strong seller in today’s weakened market, particularly with baby boomers “coming of age,” according to Mike Vowels, of Stewardship Remodeling in Seattle.

Vowels sees a strong link between the two remodeling concepts because both involve consumers planning for their futures and incorporating sustainability in a home.

But Vowels also cautions that designing the remodeling solution offered to potential clients has to be “seamless and invisible,” or consumers won’t find it appealing.

“You need to be careful when presenting the subject of ‘aging-in-place’ to prospective clients because some people are uncomfortable with the language,” Vowel says. “People don’t want to envision themselves getting old or becoming less capable.”

Instead of using the term, “roll-in shower,” for example, Vowels talks to his prospects about curb-less European showers. Instead of ramps, he discusses step-less grade changes leading to the front entrance or back patio.

Vowels markets and sells universal design and green remodeling as a total home remodeling solution rather than as two compatible concepts.

“You wouldn’t recognize the differences if you didn’t point them out,” he says. “You have to be able to demonstrate that the remodeled home would have all these tasteful changes without anyone being aware that anything is different or out of the ordinary. None of the changes should look temporary, generic or institutional.”

The most effective way to accomplish such a seamless remodel, Vowels says, is to anticipate future needs, plan accordingly and integrate the universal design and green solutions.

“It’s about how smart your house can be,” says Vowels. For example, a design that plans for future changes can include stacked closets that are properly sized so that they can be converted into an elevator shaft later, if needed. Such pre-planning meets the home owner’s needs now and their changing needs in the future.

The approach makes the whole remodeling project much more marketable and easier to sell because there are more features and benefits to sell — and because they work together, he says.

“Unlike a carton of milk or a steak, the function, safety and comfort of your home should not have an expiration date on it,” Vowels says.

• Economic Sustainability — An energy-efficient home will have lower operating costs (e.g., utilities) and coupled with universal design, the home will be more marketable to a broader population. Long term, a home with green features and universal design is a good investment.
• Environmental Sustainability — A home incorporating universal design is remodeled to anticipate the transitions linked to aging. This lessens the need for ad hoc changes in the future that are age related and less seamless.
• Social Sustainability — A home incorporating universal design provides visitability for people of varied abilities and enables home owners — and sometimes whole families — to stay in their same home (aging-in-place) and continue living in their same community.

The overall combination of benefits that result from combining universal design and green remodeling into one seamless remodeling solution is helping Vowels differentiate his company from his competition.

“We’re trying to distinguish ourselves on universal design by showing the attractive side of a very prudent choice for our customers to consider,” Vowels says.

The Stewardship Remodeling Web site, www.universalandgreen.com, and all the company’s marketing materials help focus its branding and reinforce the reason to integrate the two remodeling concepts.

Universal design and green remodeling, Vowels says, answer the current and future needs of prospective home owners by creating a finished product that is timeless in its use, contributes positively to the environment and is sustainable.

National News: Home Remodelers Lower Their Market Expectations

Remodelers perceived weakening demand for current and future residential remodeling jobs in last year’s final quarter, according to the latest NAHB Remodeling Market Index (RMI).

The RMI’s current market conditions indicator slid to 27.7, down from 33.5 in the third quarter, while future expectations plummeted from 27.7 to 19.6. Both readings were historic lows for the index, which was started in 2001.

Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running below 50 since the final quarter of 2005.

“During the last quarter many remodelers were wondering if their phones were still working because they received virtually no calls for work,” said NAHB Remodelers Chairman Greg Miedema, CGR, CGB, CAPS, a remodeler from Tucson, Ariz. “The jobs we are getting are for smaller projects and necessary home maintenance.”

Compared to the previous quarter, the 2008 fourth quarter RMI showed market conditions for major additions and alterations declining from 29.4 to 20.2, while conditions for minor additions and alterations dropped from 38.5 to 33.5. Maintenance and repair fell from 30.9 to 27.6.

Overall, major additions and other large remodeling jobs have experienced a greater decline than smaller remodels and maintenance.

“Remodelers suggest that the huge decline in consumer confidence, volatility in the stock market and uncertainty about the future of the economy have resulted in home owners delaying remodeling decisions,” said NAHB Chief Economist David Crowe. “Consumers are waiting to see conditions improve before committing to home improvement spending.”

All the RMI measures of future expectations in the remodeling market — calls for bids, amount of work committed for next three months, backlog of remodeling jobs and appointments for proposals — were down in the final three months of last year.

Expectations for the remodeling market slipped in all regions of the country during the fourth quarter — from 32.9 to 24.9 in the Northeast, from 31.5 to 30.7 in the South, from 36.2 to 28.0 in the Midwest and from 36.1 to 25.0 in the West.

Expanded Energy Tax Credit to Boost Demand for Renovation Jobs

Beefed-up tax credits for energy-efficient home improvements in the new economic stimulus package are expected to help increase demand for green renovation projects this year and next.

The Internal Revenue Code Section 25C for existing homes, which had expired at the end of 2007, was reinstated as part of the economic rescue package passed by the Bush Administration last fall. Installing energy-efficient windows, doors, roofing and insulation as well as furnaces, air conditioners and heat pumps all qualified for the credit.

But remodelers found that the terms of the 25C credit — equal to only 10% of the cost of each product and with a lifetime cap of $500 — weren’t quite strong enough to get enough home owners off the fence and into a contract.

Under the stimulus legislation signed by President Obama, the percentage of the cost and lifetime cap have been tripled to 30% and $1,500, respectively; the list of eligible improvements has been expanded and the deadline for installing them has been extended through the end of 2010.

The newly expanded tax credit also is in alignment with industry research showing that remodeling and retrofitting the nation’s older homes will have a far more significant impact on reducing residential energy consumption than meeting even the most aggressive efficiency goals for new homes, according to Greg Miedema, CGR, CGB, CAPS, chairman of NAHB Remodelers.

“These new tax credits are another way that the home building industry can combat the potential effects of global climate change by encouraging home owners to make energy-efficient improvements to their homes,” said Miedema.

A 2008 California study showed that homes built before 1983 were responsible for 70% of the greenhouse gas emissions related to single-family envelope energy consumption.

The study also found that spending $10,000 to retrofit a 1960s home could save 8.5 tons of carbon at a cost of $588 to $1,176 per ton, depending on existing tax credits and incentives. By comparison, increasing the energy efficiency of a new home 35% over current state requirements would cost about $5,000 and would reduce emissions by 1.1 tons at a cost of $4,545 per ton.

The bottom line is that retrofitting existing homes with energy-efficient features is four to eight times more carbon- and cost-efficient than adding further energy-efficiency requirements to new housing, the study showed.

Tax Credit How-to

Details on qualifying improvements are expected to be available soon on the IRS Web site.

Remodelers should familiarize themselves with the model types and products that qualify for the tax credit so they can advise their customers. However, they do not need to give their clients the product sales receipts to verify the claim. Certification statements in the manufacturer’s product information may suffice.

Home owners can claim the 25C credit on Form 5695 when they prepare their income tax returns. They should also retain records that include:

* Name and address of the manufacturer
* Identification of the component
* Make, model or other appropriate identifiers
* Statement that the component meets the 25C standards
* Climate zones for which the criteria are satisfied
* Additional information for storm windows, if applicable
* A declaration that the certification statement is true

National News: Sneak Peak at the 2009 Remodeling Outlook

Gopal Ahluwalia, Staff Vice President for the Research Economics Group at NAHB presented the 2009 Remodeling Outlook last week at the International Builders Show in Las Vegas.  A formal press release will be sent out soon containing information from his presentation, but we have aquired a sneak peak at  some of the stats.  See below.

National News: Remodelers Struggle With Clients’ Lower Credit Lines

The credit crunch is spreading to the remodeling market, but remodelers can work proactively with customers and lenders to avoid problems with financing remodeling projects.

As the nation’s credit crunch spreads into the remodeling market, undermining the financial viability of many projects, remodelers are reporting some success working proactively with customers and lenders to avoid problems with financing remodeling projects.

“Lenders are more afraid of losses if loans go into default, so they are having properties reappraised. If the appraised value of a property has decreased since the line of credit was approved, a lender may make a corresponding decrease in the line of credit or cancel it altogether,” said Bill Renner of NAHB’s Housing Finance department.

Also, with the financial sector severely constrained, banks are changing their business models and some lenders are even leaving the home equity business entirely.

Vince Butler, CGR, CAPS, of Butler Brothers in Vienna, Va., cites one project where the client secured a $200,000 line of home-equity credit, but when she returned to the bank after making design choices she found they had cancelled the approval. The client managed to secure other loans, but with confidence in her ability to line up credit bruised, she decreased the scope of the job to $60,000.

“Financially sound clients are postponing, cutting back jobs or proceeding with extreme caution,” says Butler.

When finalizing jobs, remodelers need to work closely with their clients in understanding how they intend to finance the work. Butler suggests that clients tap their lines of credit and set aside the money so that it is available when they need to pay bills. Remodelers can also ask their customers to obtain a guarantee letter from the bank to confirm the amount and availability of the line of credit.

“Some clients pay by liquidating investments,” says Butler, “but this is not going to yield much in funds right now.” He also worries that banks readjusting credit according to changes in home values changes could eventually bring margin calls on equity loans, “rocking a fundamental asset for most people.”

“The fallout comes when it hits companies my size,” says Butler. A reduction in the scale of a large job, he says, “has a huge impact on revenue and staffing.”

“I am worried for my company and for the industry too,” because it is very dependent on large jobs that are primarily funded by home equity loans, he says.

In the long term, Butler says that some banks will view home equity loans as an opportunity, and he is confident that local banks in his market will continue to provide them.

The best thing a remodeler can do is establish a good relationship with a bank to help secure financing for remodeling jobs and to refer customers when they are looking for loans, advises Butler.

The Lender Perspective

Bruce Christensen with GE Money notes that lenders in general have tightened up and are looking for more accrued equity in homes before they will grant a loan. Lenders also have raised minimum FICO scores, but he says most remodeling customers will still qualify because 58% of the population has a solid score of at least 700.

GE Money has been a leader in home improvement lending since 1989, with more than $15 billion in loans financed through an extensive network of more than 10,000 contractor locations.

“Customers who have good credit won’t have problems,” says Christensen. “But those with marginal credit will have challenges.”

He recommends that remodelers should find out about a customer’s credit history and financial resources before closing the deal. Before receiving payment, the remodeler should ask the customer to verify the line of credit and amount with the bank. Christensen notes that lenders are required to provide written notice when reducing or closing lines of credit, so customers should receive a warning.

“Lenders need to be more responsible,” says Christensen. “They don’t want to make bad loans and allow consumers to get in over their head.”

Christensen suggests remodelers seek out local lenders interested in remodeling loans or unsecured lending (which are smaller lines of credit). For larger jobs, remodelers should look for lenders making second or third home mortgages.

Unsecured Loan Options

John Harris of EnerBank USA says he has seen lenders exiting the remodeling loan business completely, while others are discontinuing loan products, modifying loan features or increasing fees. Despite the economic factors contributing to these changes, he says that his bank has not altered its programs and continues to add to the roster contractors with whom it works.

“We want to help manufacturers and contractors increase their sales, grow their businesses and make more money,” says Harris.

EnerBank USA specializes in unsecured loans to a maximum of $45,000 and it is currently financing jobs that could previously have been financed through home equity lines.

“Contractors need to take more ownership of the process,” recommends Harris. “They need to look at their current program to make sure that it meets their needs. EnerBank USA provides a turnkey program that is quick, easy and secure. Homeowners and remodelers know where they stand immediately because credit decisions are made in minutes.”

Managing the Worst-Case Scenario

Bill Owens of Owens Construction in Powell, Ohio, says he encountered unexpected problems on a job when a lender cut back a line of credit for a customer without informing them first. The customer wrote Owens checks from the credit line to pay for the remodeling work in progress and was mortified when the checks started bouncing.

“It embarrassed the client and pinched the company,” says Owens. Money had already been spent on materials and hours on the job, so the company was in a bind. The client eventually paid for the work once they were able to save up enough cash.

MyTemp Recieves Best of What’s New Award

Congratulations to the Home Comfort Zones Team!!!

MyTemp temperature control and energy management system, by Home Comfort Zones has been named one of the top 100 technological innovations of the year by Popular Science Magazine. MyTemp received a 2008 Best of What’s New Award in the Home Technology category and is featured in the magazine’s December issue.

MyTemp delivers both improved comfort and energy savings capability by providing room-by room temperature control for residential forced-air HVAC systems. It saves energy by conditioning occupied rooms only as much as needed and by reducing conditioning in unoccupied rooms. The system is unique because it monitors the temperature in every room and individually controls the airflow to every vent. MyTemp can be easily installed into most existing homes without changing the HVAC system. The energy savings features of the MyTemp System provides the controls needed for homeowners to reduce their heating and cooling energy consumption by up to 40 percent.

“Everyone at Home Comfort Zones is very excited to be recognized by Popular Science as a company that is revolutionizing residential temperature control,” said Hal Alles, Founder and Chief Technology Officer. “We appreciate the editors’ recognition of MyTemp’s significant advancements in comfort and energy management. This award reaffirms the hard work of our employees, partners and investors and signifies that room-by-room temperature control is ready for widespread adoption.”

“For 21 years, Popular Science’s Best of What’s New awards honor the innovations that make a positive impact on life today and change our views of the future,” says Mark Jannot, Editor-in- Chief of Popular Science. “PopSci’s editors evaluate thousands of products each year to develop this thoughtful list, there’s no higher accolade Popular Science can give.”

National News: Home Owners Cut Back on Remodeling in Third Quarter

Home owners dramatically cut back contracting large and small remodeling projects in the third quarter as the economic downturn deepened, according to NAHB’s latest Remodeling Market Index (RMI), which was released last week.

“Remodelers reported a drop in major home improvements, and expectations for future work have also declined,” said NAHB Remodelers Chairman Lonny Rutherford, CGR, CAPS, CGP, president of Legacy Construction, Inc. in Farmington, N.M. “A slight increase in minor remodeling projects for owner-occupied home suggests customers are cutting back on home improvement spending.”

The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view market conditions as improving The RMI has been running below 50 since the final quarter of 2005.

The RMI’s current market conditions indicator dropped to 33.5 in the quarter ending in September, down from 41.8 the previous quarter. Future expectations of remodeling work slid to 27.7 from 38.0. Bothare the lowest leves recorded since the RMI first started tracking remodeling activity in 2001.

Nationally, major additions and alterations shrank to 29.38 from 43.18 in the second quarter, while minor additions and alterations dropped to 38.51 from 42.89. Maintenance and repair dropped fell from 39.06 to 30.92.

“The remodeling market declines follow the pattern of the home building slowdown to a lesser degree,” said NAHB Chief Economist David Seiders.

The remodeling market has tightened as more home builders have taken on remodeling work, creating a more competitive market and flattening out calls for bids and appointments for proposals.

Current market conditions fell in three of the four regions during the third quarter, with declines from 40.1 to 31.5 in the South, from 52.9 36.2 in the Midwest and 42.4 to 36.1 in the West. The Northeast rose slightly from 32.8 to 32.9.

All measures of future expectations on the index ― calls for bids, amount of work committed for next three months, backlog of remodeling jobs and appointments for proposals — declined across all four regions during the third quarter.

In the “special questions” section of the RMI survey, 26% of the respondents reported receiving calls for work to improve home energy-efficiency, up 2% from the level reported in 2006.

While low-energy windows remained the energy-efficient product most commonly requestes by customers, 50% of remodelers in the survey reported installing water-saving faucets and fixtures, up from 36%, and 38% reported installing on-demand water heaters, up from 29%.

National News: Aging-in-Place Market a Bright Spot for Housing

Aging-in-place renovation work is expected to provide one of the bright spots for residential construction as the recession-battered industry eventually begins gaining ground, according to panelists at last month’s Remodeling Show in Baltimore. They also pointed out that communication with elderly home owners will be key to success in this segment of the marketplace, and that is why builders should consider teaming up with occupational therapists.

Members of the post-World War II baby boom are fast approaching traditional retirement years with the advantages of a longer life, more wealth and better education than previous generations, said Michael O’Neal, an urban sociologist with AARP, and surveys by his organization suggest that the great majority of this population will be looking for remodeling jobs that enable them to continue living in their existing homes.

By 2030, there will be more than 70 million Americans who are 65 and older, more than twice as many as today, O’Neal said. The first boomer turned 60 in 2006 and the last will turn 65 in 2039.

AARP polling has found that 84% of people who are 50 and older would prefer to reside in their existing home and within their existing community, said O’Neal. However, “only 16% have made modifications to be safe and comfortable in their home.”

Studies on mobility show that 90% of those who are 50+ stay put in their existing home, he said, and the 10% who do move tend not to go far from the area in which they have established roots.

‘A Tough Sell’

While the outlook for aging-in-place remains strong, Bill Owens, president of Owens Construction in Columbus, Ohio, noted that it “can be a phantom market.”

“It’s true,” Owens said of remodeling projects to gear existing homes to the needs of the elderly. “We know we need it, but it’s elusive because nobody wants to do it,” and boomers tend to have a feeling of “invincibility” when it comes to denying that they will eventually be affected by some of the physical and mental challenges that come with aging.

Aging-in-place can be “a tough sell,” he said, and builders need to emphasize great design opportunities. “You cannot sell cod liver oil,” he said. “Have your universal design glasses on all the time,” and if done right, universal design principles can be brought into the home unobtrusively.

The aging of the nation’s housing stock, with the average home now 33 years old, is conducive to “a mélange of home modification opportunities,” Owens said. Older home owners tend to live in two-story houses, with small bathrooms, narrow doors and small boxes “that are completely different from today’s open floor plans,” he said, none of which is particularly well-suited to accommodating the needs of aging residents.

Seniors in the 60-to-70 age bracket tend to be most receptive to the idea of remodeling so that they can continue to comfortably reside in their existing homes, he said, but that willingness begins to fade by age 70 to 75. Boomers, who will represent the majority opportunity for these jobs as they increasingly get older, are already key influencers, he said, in making decisions for their parents.

Persons of all ages and abilities can benefit from universal design, Owens said. “A home that has no barriers is the goal,” he added.

Working With Occupational Therapists

AARP’s O’Neal said that remodelers should understand that elderly home owners might not understand what a contractor is telling them when going through the house. This occurred when his father, who is hard of hearing, was in the process of getting a new roof.

“A remodeler won’t close the sale with someone who doesn’t really understand what the contractor is presenting,” said Carla Chase, assistant professor of Western Michigan University’s occupational therapy program and a representative of the American Occupational Therapy Association. But there can be much more that remodelers need to know about prospective clients who are elderly, and occupational therapists (OTs) can play an essential role in this process, she said.

OTs can help contractors determine what needs to be modified in the home by evaluating the client’s physical and emotional strengths and limitations as well as medical conditions that have an impact on how they function — often after an illness or injury — and what can be expected as they continue to age, said Chase.

“A person may claim not to need help in walking, but hand marks on the wall indicate otherwise,” she said. The OT asks, “What are they able and not able to do in their home?” Expanding the overview of the project, the OT also assesses anyone who is taking care of the resident of the home.

Chase said that OTs can weigh the course of medical conditions as they pertain to the livability of the client’s home. Some of these conditions can be short-term, some can happen suddenly and some progressively become worse.

Clients with multiple sclerosis, for example, will need increasingly more support five and 10 years down the road, she said, and when considering modifications to the home should be planning for the future. “They need to decide to go the extra step now,” she said.

OTs can help with such psychosocial aspects of the aging process as loss of control, which can be a difficult issue for a person who has defined their adult life as being the primary breadwinner and now sees that role changing. OTs can also help resolve other powerful issues that can cause multiple problems for the parties involved in the home modification process — such as privacy and fear of falling.

Aging clients often need support when it comes to overcoming reluctance to face the need for modifications to their home. It is helpful, Chase said, to begin by pointing out to the client steps they have already taken to make their home more livable — such as using nightlights or installing a non-skid surface in the shower. It is also good to have them recognize that modifications in the home will improve the comfort of visitors, such as grandchildren or an elderly sibling.

“You need to talk about the bad days with the client,” Chase added. “They may be feeling good the day the contractor comes in.”

Panelists recommended CAPS (Certified Aging-in-Place Specialist) training from NAHB for builders who are considering diversifying into the aging-in-place market.

The organizations represented on the panel have been working together to create consumer demand for remodelers who understand aging-in-place concepts; promote the benefits of partnering with occupational therapists to better meet the needs of home owners who want to age in place; learn how best to market aging in place remodeling to seniors; and emphasize the importance of customization in this market.