Chicago home restoration may trump buying new. CEO of Real Restoration Morris Gershengorin sees a cookie cutter-minded homebuilding industry that lacks customization.
- Cookie cutter new home designs are influencing some homeowners to nest and remodel in Chicagoland area.
- Firm will put clients up in offsite furnished apartments during remodeling work.
- Two sources forecast 2016 to be a strong year for residential remodeling.
When it comes to new homebuilding, Morris Gershengorin sees a cookie cutter-minded industry that lacks an understanding of what the end user is looking for: customization.
As a result, Gershengorin, who serves as CEO of Chicago home restoration and construction firm Real Restoration, envisions that more current homeowners will “nest” and invest in comprehensive rehabs rather than buy new construction.
“It’s (their home) not a broken toy they have to throw away,” he said.
In a strategy to cater to these homeowners, Real Restoration is launching an elevated approached to its remodeling offerings, dubbed Concierge Construction.
The service will essentially take control of the entire remodel from reconstruction planning and design work to building supervision and completion.
As part of the new service, which is geared toward busy professionals, Real Restoration will also house clients in offsite furnished apartments during construction and provide them with transportation to and from building appointments.
Expansion to the Miami multifamily sector
Outside of the single-family sector, the firm plans to grow via a partnership with an institutional investor. Under this alliance, Real Restoration will expand its services to Miami and focus on value-add multifamily construction.
The firm’s institutional partner is looking to acquire rental properties in Broward and Miami-Dade counties, and will likely bring Real Restoration in as a general partner, responsible for taking control of renovation work and the preliminary marketing of newly-remodeled units.
Gershengorin expects this expansion together with the newly-launched concierge service to result in 100 percent growth for the firm this year.
Overall, the residential remodeling industry appears on track for a healthy 2016.
According to the Leading Indicator of Remodeling Activity, annual spending growth for home improvements will increase 4.3 percent in the first quarter of this year. By the third quarter this spending growth will have accelerated by 7.6 percent. Recovery within the owner-occupied housing market is cited as the reason for these increases.
A separate forecast released by the National Association of Home Builders, forecasts remodeling spending for owner-occupied single-family homes to rise by 1.1 percent this year.