Upgrade Opportunities Exist in the Single Family Home Market

Has your showroom benefited from an uptick in lighting upgrades in the home builder market? According to research conducted by residential market advisory service Zonda Building Products, paid upgrade options in Lighting have outpaced the general market in most years and grew more compared to their 2018-2019 baseline. In addition, paid Electrical upgrades have outpaced other upgrade categories since 2019 (with the exception of a weak 2022).

David Gordon, president of the consulting firm Channel Marketing Group, which publishes ElectricalTrends,and Jacob Belk,  VP/Advisory Services for Zonda Building Products, recently discussed the electrical and lighting upgrade market in the new construction sector.

Gordon and Belk agree that while builders may look to “skimp” as a way to maintain their costs, the electrical and lighting upgrade component for these homes can be a lucrative opportunity for electrical distributors and lighting showrooms — if they can make the process “easier” for the builder and/or if showrooms can communicate with the consumer.

In 2024, Zonda’s research indicated that both Electrical and Lighting upgrades continue to be rated as very desirable, with consumers purchasing upgrades at almost the same rate they were offered. While Belk and Gordon expect that electrical upgrades in new homes will be relatively resilient to the impact of tariffs in 2025, Lighting and Fans upgrades will have more exposure to price shock from the proposed tariffs.

Showrooms should consider taking the lead in reaching out to local contractors to propose specific lighting upgrades, or explore the idea of partnering in some way (i.e. cross promotion or referal incentive) with companies offering smart home capabilities or energy monitoring programs.

Read the full discussion, plus access the survey results’ charts, on the Electrical Trends website here