Local remodelers offer their perspective on the current market.
In last month’s issue of BUILD Des Moines, several local developers shared their assessment of the 2025 development and construction market (see “Holding Steady,” July 2025). This month we turn to the remodelers to get their take on the situation.
National Association of Home Builders economist Robert Dietz stated recently in a presentation to the Quad Cities HBA (see “A Year of Change,” July 2025), “Iowa might see a slight decline in single-family housing starts for 2025. But remodeling is already bullish, and if rates drop at all, this segment of the market will get active fast.”
The experts on the following pages are taking that prediction with a grain of salt.
Whether it is the natural caution of Midwesterners or their years of experience speaking, this group is less inclined to be bullish and more concerned about staying focused on what they do best, no matter what the rest of the market is doing.
Seth Arganbright
Woodharbor Kitchen & Bath
After a slightly slower year in 2024, Woodharbor’s Seth Arganbright says 2025 is shaping up to expectations. “We anticipated that this year would be better than last year, and that seems to be the case. Leads are definitely up, and projects have picked up since the second quarter, like it usually does.”
He says interest rates may have some bearing on whether potential clients opt to remodel rather than move, but he believes it isn’t a primary factor.
“Interest rates alone don’t usually drive remodeling projects. Prices are up on everything now, from materials to home purchase costs. So when you add that on top of higher interest rates, it’s really that total number for the project that’s making buyers hesitate.”
Those prices are likely playing into the pace of decision making for homeowners, too.
“Even though leads are up, homeowners are taking a little longer to pull the trigger on projects,” he says. “I don’t know if that’s a result of interest rates or just the general mood of consumers rights now.”
Despite that, Arganbright expects 2025 to end slightly better than 2024.
“We’re expecting good third and fourth quarters with the projects we have scheduled, and total volume is up from last year. With the number of older homes in the Des Moines area, there’s always going to be a demand for remodeling, whether homeowners are wanting to add more luxury or just increase the value of their homes.”
Kitchen remodels and master suite updates remain the most popular projects. With lead times nearly back to normal, Arganbright says most of Woodharbor’s projects are complete in less than 8 weeks once the crew is on site.
“Cabinetry is still about an 8-week lead time, but that’s fairly typical. Woodharbor put in a lot of work to improve efficiencies during COVID, and that’s kept lead times down since the market leveled off.”
With much of the labor kept in-house, Woodharbor is able to manage the construction schedule efficiently as well. “We have our own carpenters who also function as project leads,” he says. “So we can keep the quality high and work with fewer contractors that we’ve built long-term relationships with.”
Arganbright says he’s heard all the talk about tariffs and market volatility, but their effect on the remodeling market remains to be seen.
“In general, there’s usually less volatility for remodelers than for builders, especially large builders. We are not purchasing materials in the same quantities, so we don’t feel the effects the same way.”
Although market trends play a part in consumer outlook, Arganbright says that for Woodharbor, staying focused on clients and their individual projects gives the company a different perspective than what comes through the media.
“Last year, with the uncertainty of the election and all the tariff talks at the beginning of the year, things were a little slower,” he says. “But we came into this year expecting the pace to be better than 2024, and we’re on track to see it so. We’re feeling pretty positive about where things will be at the end of 2025.”
Seth Arganbright, General Manager
Woodharbor Kitchen & Bath
WoodharborDesMoines.com
Kim Hinkhouse
Design2Build
“January is typically a little quiet for remodeling inquiries, and calls start to pick up in February,” says Kim Hinkhouse of Design2Build. “It seemed to take a little longer to pick up this year. But halfway through the year, things are trending in line with 2024.”
“Interest rates may not be the underlying factor for most homeowners,” she says. “But even a slight drop in rates boosts consumer confidence. Both construction and remodeling would benefit from that.”
At Design2Build leads picked up as the summer began. The company is seeing more exploratory contacts as homeowners begin considering new projects. Design2Build works with both new construction and remodel clients. Hinkhouse says that initial conversation often addresses the pros and cons of choosing between the two.
“With interest rates and housing costs where they’ve been the past few years, most clients can’t replace their current square footage for the same money,” she says. “We sit down with them and look at their current home to see if a remodel is the better investment.”
After years of experience, the team at Design2Build has developed a well-organized process that enables the team to present a clear budget, a custom design, and an itemized schedule before work even begins.
Hinkhouse says, “We do a lot of that exploratory work, design process, and pricing actual costs upfront so that pricing is accurate and dependable. Planning is huge. Remodeling is an investment, but there’s also a cost to waiting. Material prices don’t usually go down. We’ve never had a client say they chose to remodel too soon. They always say they wish they’d done it sooner.”
As Chair of the HBA of Greater Des Moines Remodelers Council, Hinkhouse is hearing much the same sentiments from members across central Iowa.
“Our members are seeing interest from homeowners, but people seem to be a bit slower to make the decision to get started. After the first quarter of 2025, when interest rates hadn’t really changed, potential clients began to realize that investing in their current home might be the better option.”
The Remodelers Council is a network of area remodelers and industry professionals who share knowledge with each other. The Council also holds educational events on new products, techniques, and vendors.
“Our annual Tour of Remodeled Homes each October is an opportunity for potential clients to see completed remodel projects around the metro,” Hinkhouse says.
With leads on the rise and the consumer confidence slowly increasing, Hinkhouse anticipates that 2025 will end around the same volume of work as 2024.
“The remodeling industry nationwide is expected to see a 5% increase in project starts this year, so that’s a good sign,” she says. “I saw one statistic that said 48% of the homes in the Midwest were built before 1980, so there’s always going to be a market for remodeling.”
Hinkhouse expects 2025 to be consistent with 2024 numbers. Design2Build remains focused on putting the company’s experience to work to serve clients with expertise and efficiency.
Kim Hinkhouse, Co-Owner
Design2Build
d2b.design
Devan Kaufman
Kaufman Construction
Kaufman Construction’s Devan Kaufman says that although he listens to what others have to say, he tries not to focus too much on what everyone else is doing or even what the media says the market is doing.
“Most of what you read and hear is all gloom and doom. Focusing on that doesn’t help anybody,” he says. “But it can have an effect on how people feel about the market. I think we’re seeing uncertainty from consumers because of it.”
He says Kaufman Construction has seen a lot of interest from potential clients. But homeowners are slower to make a decision and even a bit more cautious after they’ve committed to a project.
“A lot of people seem hesitant to make that leap, like they’re expecting more bad news,” he says. “Our handyman business was slower to take off this year. I’m not sure if that was an effect of the uncertainty. But it’s gotten busier.”
Having focused on remodeling since the company began, Kaufman says the company sees marketing as more of a long-term process, and the current market hasn’t changed that.
“We’re always trying to form relationships,” he says, “whether it’s with our website contacts, our newsletter, or the events we host. Most clients start looking at pictures and other remodel projects long before they’re ready to start their own. We recognize that there has to be a relationship first.”
This year a number of Kaufman Construction’s projects have been returning clients who have remained in contact.
“By and large, our clients have been thinking about and planning for these projects for years,” says Kaufman. “So they’re less impacted by the ups and downs of the market as a whole. They’ve either been setting money aside for this or they have the equity to. That means outside market forces are less of a factor.”
Kaufman Construction is known for its design and craftsmanship. A typical project isn’t actually typical. Projects are fairly evenly distributed among master baths, kitchens, outdoor living spaces, and larger interior remodels.
This year, however, Kaufman says kitchens seem to be dominating the project list.
“I don’t know if that’s market driven or not. Most of the kitchens we’re doing are returning clients. I don’t know if the current economy played into that or if they were just ready to get started. But we do seem to be doing a larger percentage of kitchens than usual.”
Although the handyman projects may be oriented toward upkeep and maintenance to make a home more functional and help retain the home’s value until the owners are ready to sell, Kaufman Construction’s remodel projects are clearly focused on creating an environment where the homeowners want to stay.
“I admit I’m more of an optimist,” says Kaufman. “I have a hard time not thinking things are going to get better or stay strong. But the gloom and doom perspective just doesn’t seem to be reality.”
The year may have started slightly slower, but Kaufman is focused on the months ahead, and he says the calendar is getting busier every day.
Devan Kaufman, Owner
Kaufman Construction
KaufmanConstruction.com
Tom Monson
Home State Builders
After 25 years in the business, Tom Monson of Home State Builders says adapting to a changing market remains a priority for remodelers. This year the slow start has motivated the company to tweak its marketing routine and expand its online presence.
Home State Builders has been focusing on education and transparency so the firm can meet potential clients where they are and to better introduce themselves to homeowners who are just beginning to consider a remodel.
“We’ve ramped up our online presence, sharing before-and-after photos and progress videos, as well as customer testimonials,” Monson says. “We provide detailed cost breakdowns and flexible payment options because some homeowners are more comfortable starting with smaller, phased projects. We help them prioritize their wish lists and planning to allow them to scale up when they’re ready.”
Monson believes interest rates are a key factor in that hesitation, but not the only one in play. “Higher borrowing costs are making homeowners think twice about financing big projects,” he says. “But slower home sales are also playing a role. People might be choosing to stay put. But they’re not always turning around and reinvesting in their current homes as quickly as we saw in prior years. This might be due to broader economic uncertainty.”
He says, “We expected a modest pickup in spring and early summer, but the volume of inquiries and signed contracts hasn’t matched our usual pace. There’s definitely more hesitation on the customer side right now, especially for larger-scale remodels.”
Those homeowners who have begun remodel projects this year seem to be leaning more toward functional updates over purely aesthetic ones, says Monson, as clients prioritize their budgets. “Kitchens and baths are still top priorities, but instead of full luxury remodels, many clients are choosing midrange upgrades. Energy efficiency upgrades such as windows, insulation, and HVAC improvements have also picked up, which is a shift from the more design-forward trends we saw a couple of years ago,” he says.
Although a drop in interest rates or an uptick in home sales could spur remodel activity, Monson says a lot will depend on consumer confidence in the condition of the economy. “Usually when home sales pick up, we see a boost in presale touch-ups and post-purchase remodels,” he says. “Sellers want to boost market appeal, and new owners want to personalize their space. But if interest rates stay high, the jump in those remodel projects may not be as dramatic.”
That being said, Monson remains modestly optimistic about 2025. “I expect a slight rebound in remodeling activity, especially if inflation continues to ease,” he says. “If rates come down even slightly over the next 6 months or so, I think we’ll see a more noticeable uptick, especially in medium to large remodels. Homeowners are becoming more value conscious, and the remodel industry will need to keep evolving to meet those expectations.”
Monson doesn’t anticipate the market will ever see a return to pandemic-era activity. He says adapting to current conditions is as important for remodelers as it is for consumers. After several years of erratic market activity and the economic uncertainty, he believes homeowners are focused more on value than luxury. Home State Builders remains focused on providing that.
Tom Monson, Owner
Home State Builders
HomeStateBuilders.com