2023 homeowner survey.pdf

May 2023

Oregon Contractors Construction Board Homeowners Survey

Background & Objectives 3

Methodology & Sampling 4

Analytical Summary 5

Key Insights 6

Detailed Findings

Awareness of and Contact with the CCB 11

Resident Behavior 16

Future Intentions 22

Appendix

A. Demographic Profile 27

B. Final Questionnaire 29

Table of Contents

Background & Objectives

• The Oregon Contractors Construction Board (CCB) regulates the construction contractor industry and promotes a competitive business environment through education, contractor licensing, dispute resolution, and law enforcement.

• Since 2001, the CCB has conducted an annual Statewide Homeowner Survey with Oregon residents.

• As in past years, the goal of the 2023 survey is to understand homeowners' awareness levels of and attitudes toward the agency and its services. In addition, the questionnaire was constructed to measure:

– The percentage of Oregon homeowners who understand and rate the value of hiring a licensed contractor; and,

– The percentage of Oregon homeowners who are aware of their rights and responsibilities, and the services offered by the CCB.

• Through this research, the CCB would also like to identify areas in which homeowners need to be educated, and how to best reach them.

• Beginning with the Wave 7 (2021) data, we changed the data collection method from a telephone sample to an online panel participant list. All data was collected online for Wave 8 (2023).

MOU0

Slide 3

MOU0 Any notes on 2022 data?

Microsoft Office User, 2023-05-15T03:30:51.154

Methodology & Sampling

• Since 2014, the CCB has contracted with the Logit Group (formally Issues & Answers) to conduct their annual Statewide Homeowner Survey. Fielding for the 2023 survey took place from May 5, 2023 to May 12, 2023.

– In total, 800 Oregon homeowners were interviewed (400 males / 396 females).

– All interviews were conducted online and lasted approximately 5 minutes each.

• To ensure a geographically representative sample of Oregon homeowners, regional quotas were implemented based on census estimates. Below is a summary of completes per region.

%n=Region

39.25%314Portland Metro

20.13%161Willamette Valley

20.38%163Southern

20.25%162Central/East/Coast

100.01%800Total

Analytical Summary

• For comparison purposes, respondents were segmented into various sub-groups based on demographics, behaviors and perceptions.

• Significance testing (t and z tests) at the 95% confidence level was conducted to detect significant differences among respondent segments. When applicable, these findings will be noted.

• Participants were asked up to two open-ended questions to aid in understanding the "whys" behind the numbers. Responses to these questions have been coded (when applicable) and tabulated for inclusion in this report.

• In some instances, percentages may add to more or less than 100% due to rounding and multiple response answer choices.

• Throughout the report, statistical differences between Waves 7 and 8 have been noted with a “” arrow/symbol.

Key Insights

Key Insights

• Overall awareness of CCB is fairly consistent year after year. Currently, awareness is 78%, a 24-point climb Wave 7. Word of mouth continues to be a powerful source of information; the last few years it has been the most common way homeowners find out about contractors (69%) and the CCB (46%).

– As was the case in the previous four waves, traditional information channels (e.g., newspaper articles, news story on television or radio, public service TV or radio announcements, etc.) are cited less often, yet have been significant comebacks.

– When looking for a contractor, mentions of both Internet lists (52%) and the contractor association website (59%) are up significantly compared to the past two waves.

• In a new record and increasing slightly, and still consistent with the past five waves, 96% of homeowners who are aware of the CCB know the agency licenses contractors.

Word of mouth and social media are powerful recommendation tools, and their impact has stayed consistent year-after-year.

The overall results for Wave 8 are significantly different from prior waves (nearly all in positive, improvement conditions). There are a few differences to consider when reviewing the results:

– Online surveys allow respondents to rely on sight to view answers and view entire answer lists.

Respondents are more inclined to provide numerically more answers online compared to phone surveys.

– The COVID-19 pandemic altered people’s lives, construction projects, homeownership rates, and interest in home improvement projects.

– The demographic makeup of this wave’s homeowners are significantly: older, more affluent, more educated, are more white, and have lived in their homes longer than in Wave 7.

– We witnessed a a significant uptick in the purchasing of more homes, or building of new homes, than any previous wave. (Remodeling and home improvement has remained consistent.)

Key Insights, cont’d.

• Increasing substantially and significantly from previous waves, 76% of homeowners who are aware of the CCB recall having contact with the Board during the past five years. This is the highest recall from any of the past waves.

– The incidence of contact also increased by an incredible high among those who have built a new home or undertaken remodeling/home improvement projects in the past five years (95%).

• In a new trend, the most often cited reason for contacting the CCB was for contractor complaints. 72% of those who contacted the CCB were doing so to file grievances, or learn how to file a report.

– In continuing the Wave 7 trend, even more homeowners were homebuilding than ever before (34% of total participants). The increase in constructions projects, combined with a more educated set of homeowners + higher awareness, could could contribute to the rise in formal complaints.

Key Insights, cont'd.

• The vast majority (91%) of Oregon homeowners have constructed a new home or undertaken remodeling/home improvement projects within the past five years—a 12-point increase from Wave 7 (79%) and an impressive 35-point increase from Wave 6 (56%).

– BETTER STORY: Although 95% of these residents agree that it is important to use a licensed contractor when having construction, remodeling, or repair work done, this wave 91% of them report using a contractor for such projects – closing the gap significantly compared to past waves. Among those who did, a new low (14%) were unsure of whether the contractor was licensed with CCB.

– IMPROVED STORY: The percentage of homeowners who are aware that it is illegal for non-licensed contractors to perform construction, remodeling, or repair work has remained consistent has risen to 72%, a new high. However, a notable percentage (28%) continue to remain unaware of the law.

– CONSISTENT STORY: Even among the 86% who say they used a contractor licensed with the CCB (a new high), only 65% actually verified the contractor's license with the agency, consistent with recent waves.

Detailed Findings:

Awareness of and Contact with the

CCB

• More than three-quarters (78%) of Oregon homeowners have heard or read about the CCB. This is a 24-point climb compared to Wave 7.

– For the first time in reporting history, awareness is equal among both males and females (78% each).

– While there is high awareness for all regions, Central/East Coast (85%) and Southern (83%) and are significantly more likely to be aware than Willamette Valley (74%) and Portland (73%).

• At a new high of 99%, awareness of the CCB continues to be stronger among homeowners who have built a home in the past five years as compared to those who have done remodeling in the past five years (80%).

78%

54% 44% 46% 48% 51% 45% 46%

18%

40% 54% 51% 49% 48% 53% 53%

4% 6% 2% 3% 2% 1% 2% 1%

Wave 8 (n=800)

Wave 7 (n=828)

Wave 6 (n=501)

Wave 5 (n=500)

Wave 4 (n=500)

Wave 3 (n=500)

Wave 2 (n=500)

Wave 1 (n=500)

Awareness of the CCB

Yes No Don't know

Awareness of the CCB

Q1. Have you heard or read about the Oregon Construction Contractors Board, also known as the CCB? (Base: All respondents)

Arrows denote significant difference from Wave 7

• While awareness has significantly improved nearly across the board, at 46%, word of mouth from family, friends, or acquaintances is the most common way homeowners report becoming aware of the CCB. This number is the highest its been from past waves.

– Awareness among females and males are comparable this wave, with females slightly higher (49% to 44% respectfully).

• 28% of participants say they are aware of the CCB because they are construction contractors themselves, which is also much higher than previous waves.

• Newspaper articles have been in the top three sources over the course of this study, its influence was previously steadily declining year-to-year. However the past two waves have seen impressive uptick (37% in Wave 8 and 33% in Wave 7).

– Awareness via Television News Stories is also on the rise the last two waves.

46%

38%

37%

33%

29%

28%

27%

5%

5%

38%

19%

33%

17%

14%

12%

17%

15%

6%

Word of mouth

News story on television

Newspaper article

Public service TV announcement

Public service radio announcement

I am a construction contractor

News story on radio

Other

Don't know

Information Source

Wave 8 (n=622)

Wave 7 (n=449)

Wave 6 (n=221)

Wave 5 (n=229)

Wave 4 (n=242)

Wave 3 (n=254)

Wave 2 (n=225)

Wave 1 (n=229)

Source of Information About the CCB

Q2. How did you hear or where did you read about the CCB? (Base: Respondents who are aware of the CCB)

Awareness of CCB Services

Q3. Are you aware that the CCB licenses construction contractors that offer home construction, remodeling or repair work for payment in Oregon?

(Base: Respondents who are aware of the CCB)

• In a continued increase, the past two waves have seen a significant increase from earlier studies where the vast majority (96%) of homeowners who are aware of the CCB know the agency licenses construction contractors.

– Females and Males are both likely to know this function of the CCB (97% to 96% respectfully).

– Down slightly from 100%, 98% of homeowners who built a home in the past five years stated they were aware of CCB services.

96% 93% 87% 83% 88% 89% 88% 84%

4% 7% 13% 17% 12% 11% 12% 16%

Wave 8 (n=622)

Wave 7 (n=449)

Wave 6 (n=221)

Wave 5 (n=229)

Wave 4 (n=242)

Wave 3 (n=254)

Wave 2 (n=225)

Wave 1 (n=229)

CCB Licenses Construction Contractors

Aware Not aware

Contact with the CCB

Q5. During the past five years, have you had any contact with the Oregon Construction Contractors Board (CCB)?

(Base: Respondents who are aware of the CCB) *Q6. What was your reason for contacting the Oregon Construction Contractors Board?

(Base: Respondents who contacted the Oregon Construction Contractors Board within the past five years) *Caution: Small base size; results should be interpreted as directional in nature

• In a significant jump, 76% of residents who are aware of the CCB have had contact with the agency during the past five years.

• In addition, 82% of residents who built a new home or did remodeling/home improvements in the past five years report having contact with the CCB, a significant increase.

• Issues with contractors may be on the rise: the most often reason, and highest in study history, to contact the CCB is to to report a problem with a contractor or to get information on how to file a complaint (72%), followed by wanting to verify a contractor before hiring (62%).

Wave 1* (n=38)

Wave 2* (n=40)

Wave 3* (n=37)

Wave 4* (n=41)

Wave 5* (n=31)

Wave 6* (n=49)

Wave 7 (n=157)

Wave 8 (n=471)

Reason(s) for Contacting the CCB*

16%13%19%17%26%12%35%72%

To report a problem with a contractor/to get information on how to file complaint

47%45%38%34%48%33%69%62%

Check out/verify/get information on /license of a contractor/before hiring

37%30%51%29%29%35%24%46%

I am a contractor/for information on becoming licensed as a contractor

8%18%0%22%13%27%3%1%Other

5%3%3%0%0%0%1%1%Don't know

17%

18%

15%

17%

14%

22%

35%

76%

83%

82%

85%

83%

87%

78%

65%

24%

Wave 1 (n=229)

Wave 2 (n=225)

Wave 3 (n=254)

Wave 4 (n=242)

Wave 5 (n=229)

Wave 6 (n=221)

Wave 7 (n=449)

Wave 8 (n=622)

Contact with the CCB in the Past 5 Years

Yes No

82%

52%

8% 16%

7%

35%

15% 8%

15%

48%

92% 84%

93%

65%

85% 92%

3%

Wave 8 (n=471)

Wave 7 (n=157)

Wave 6* (n=49)

Wave 5* (n=31)

Wave 4* (n=41)

Wave 3* (n=37)

Wave 2* (n=40)

Wave 1* (n=38)

Filing Claim with the CCB

Yes No Don't know

• Incidence of filing a claim for damages with the CCB up considerably from all previous waves and setting a new record high.

– This wave, 82% of those who report contacting the CCB in the past five years say they filed a claim for damages or workmanship.

• Specifically, 88% of participants who built a home and contacted the CCB stated they filed a claim for damages. This represents 228 total homeowners, or nearly 29% of the total respondents interviewed.

Filing Damages with the CCB

(Current) Q7. Have you ever filed a claim for damages or workmanship against a contractor with the Oregon Construction Contractors Board?

(Base: Respondents who contacted the Oregon Construction Contractors Board within the past five years) (Old) Q8. How satisfied were you with the way in which your complaint was investigated and resolved – were you extremely satisfied, somewhat satisfied, somewhat dissatisfied, extremely dissatisfied or neither satisfied nor dissatisfied?

(Base: Respondents who filed a complaint with the Oregon Construction Contractors Board within the past five years) *Caution: Small base size; results should be interpreted as directional in nature Note: Question wording was revised for Wave 4 and ‘Don’t know’ was added in Wave 8.

Resident Behavior

New Home Construction / Home Improvement Projects

Q10. During the past five years, have you done any of the following? (Base: All respondents)

• Nine in ten (90%) Oregon homeowners who participated in the study have either built a new home or done remodeling or home improvement projects in the past five years.

– This figure has increased from

79% in the previous wave.

– Those building a new home has more than tripled than reports from Wave 7 (34% vs. 11%).

• At 44%, the incidence of existing home purchases rose another 6 points, after doubling from Wave 6 to Wave 7.

• In a new development, older homeowners (45-64, and 65+) are more likely than younger homeowners (18-44) to have done remodeling or home improvements in the past five years, reporting at 55%, 66%, versus 47% respectively.

56%

44%

34%

12%

53%

38%

11%

21%

Done any remodeling or home improvement projects in your home

Purchased an existing home

Built a new home

None of the above

New Home Construction or Home Improvement Projects in Past 5 Years

Wave 8 (n=800)

Wave 7 (n=828)

Wave 6 (n=501)

Wave 5 (n=500)

Wave 4 (n=500)

Wave 3 (n=500)

Wave 2 (n=500)

Wave 1 (n=500)

Use of Contractors

Q9a. Did you hire a professional when you built a new home?

Q9b. Did you hire a professional for any part of your remodeling or home improvement projects? (Base: Respondents who have built a new home or done remodeling or home improvement projects)

• The number of Oregon homeowners who report hiring a professional contractor to either build a new home or make home improvements has continued to increased significantly between Wave 8 (91%) and Wave 7 (73%).

– At 96%, the use of a contractor by those who built a new home also increased from the previous wave.

91%

73% 58%

69% 66% 68% 58% 57%

8% 27%

41% 30% 34% 31%

41% 43%

1% 1% 1% 1% 1% <1% 1% 0%

Wave 8 (n=449)

Wave 7 (n=502)

Wave 6 (n=239)

Wave 5 (n=265)

Wave 4 (n=224)

Wave 3 (n=265)

Wave 2 (n=247)

Wave 1 (n=261)

Use of Contractor During New Home Construction or Remodeling/Home Improvements

Yes No Don't know

Contractors’ Licenses with the CCB

Q10. Was your professional contractor licensed with the Oregon Construction Contractors Board (CCB)?

(Base: Respondents who used a contractor for new construction or remodeling) Q11. What are some of the reasons why you did not use a contractor licensed with the Oregon Construction Contractors Board (CCB)?

(Base: Respondents who used a contractor not licensed with the CCB)

• For the first time, 0%* of Oregon homeowners report knowingly hired a construction contractor who is not licensed by the CCB. A significant improvement from Wave 7 which saw an all-time high (5%).

• Reversing the previous trend, only 14% of homeowners are unaware of their contractor’s licensure status, a record low.

• Homeowners who are aware of the CCB are significantly more likely to have hired a licensed contractor compared to those who are unaware (94% vs. 73%, respectively), yet both are high.

• *Only 2 homeowners report knowingly hiring a non-licensed contractor, their reasoning was:

– “I am also a contractor.”

– “The reason is that the licensed contractor are very costly.”

86%

70% 81%

72% 74% 78% 80% 79%

0%

5% 1%

3% 3% 3% 1% 1%

14% 25% 18% 25% 24% 18% 19% 20%

Wave 8 (n=561)

Wave 7 (n=364)

Wave 6 (n=139)

Wave 5 (n=183)

Wave 4 (n=148)

Wave 3 (n=179)

Wave 2 (n=142)

Wave 1 (n=148)

Contractor Licensed With the CCB

Verification of Contractor’s License

Q12. Did you verify with the Oregon Construction Contractors Board (CCB) that your contractor was licensed?

(Base: Respondents who used a licensed contractor for new construction or remodeling)

• In a continued trend, MORE homeowners (91%) verified their contractor’s license with the CCB than those who did not check for credentials (8%). A new record high.

– Over time, there has been a significant shift in homeowners verifying these details with their contractors compared to the first wave, and a significant shift since Wave 7.

37%

43%

41%

45%

51%

59%

68%

91%

62%

50%

56%

53%

44%

37%

30%

8%

2%

6%

3%

2%

5%

5%

2%

1%

Wave 1 (n=117)

Wave 2 (n=113)

Wave 3 (n=140)

Wave 4 (n=109)

Wave 5 (n=132)

Wave 6 (n=112)

Wave 7 (n=254)

Wave 8 (n=483)

Verification of Contractor's License

33%

21%

18%

13%

0%

8%

25%

17%

3%

21%

16%

12%

Trusted the contractor / took them at their word

Contractor was a family member / friend / knew personally

Was not aware you could verify / needed to verify / didn't know how to verify

Contractor showed his card / license

Word of mouth / recommendations were positive

Contractor was from a well-known business/ store / retailer

Reasons Why License Was Not Verified

Wave 8* (n=39)

Wave 7* (n=75)

Wave 6* (n=41)

Wave 5* (n=58)

Wave 4* (n=58)

Wave 3* (n=78)

Wave 2* (n=57)

Wave 1* (n=72)

Reasons for Not Verifying License

*Q13. What are some of the reasons why you did not verify the contractor with the Oregon Construction Contractors Board (CCB)?

(Base: Respondents who did not verify that their contractor was licensed) *Caution: Small base size; results should be interpreted as directional in nature

• The most common reason for not verifying a contractor’s license is that they trusted the contractor’s word (33%), up 8 points from Wave 7.

• Retreating, we returning to previous averages of how often a contractor offers their license initially (13%), down 8 points from a previous high (21%).

• Word of mouth/positive recommendations were not mentioned at all this wave. However, with the increase in trust and knowing the contractor’s more personally, this may be why it wasn’t singled out during Wave 8.

Note: Responses with less than 5% of mentions are not shown Arrows denote significant difference from Wave 6

Future Intentions

Q14a. If you were looking for a contractor for home construction, remodeling, or repairs where would you go first to select a contractor?

Q14b. Where else would you go if you were looking for a contractor for home construction, remodeling, or repairs? (Base: All respondents) ^ Option not offered prior to Wave 3

• A referral from friends, relatives, colleagues, etc. is still the most commonly cited way to look for a contractor for home construction or repairs.

Down slightly from Wave 7 (69%), still on trend.

• Since introduced during Wave 3, Internet lists (such as Angie’s List or Craigslist) continue to be one of the top mentioned resources for looking for a contractor.

• Second wave in a row where a significant amount of homeowners mention a contractor association website (59%) specifically when looking for a contractor.

• The yellow pages, newspapers, and radio/tv mentions were all three significantly increased compared to Wave 7.

69%

59%

0%

37%

31%

25%

23%

4%

6%

73%

46%

52%

28%

23%

20%

19%

5%

3%

Referral from friend / relative / colleague / neighbor

Contractor association website

Internet lists^

Yellow pages/phone directories

Newspaper

Radio / Television

Home show

Somewhere else

Don't know

Places to Look for a Contractor (All mentions)

Wave 8 (n=800)

Wave 7 (n=828)

Wave 6 (n=501)

Wave 5 (n=500)

Wave 4 (n=500)

Wave 3 (n=500)

Wave 2 (n=500)

Wave 1 (n=500)

Places to Look for a Contractor

Importance of Using Licensed Contractors

Q15. Do you agree or disagree that it is important to use a licensed contractor when having construction, remodeling or repair work done on your home or property? (Base: All respondents)

• In line with past waves, the vast majority (95%) of homeowners agree that it is important to hire a licensed contractor.

– This wave, younger homeowners are closing the gap with older homeowners in terms of strongly agreeing it’s important to hire a licensed contractor (60% of those under 45 compared to 69% of homeowners 65+).

66%

68%

65%

68%

65%

65%

61%

60%

15%

13%

17%

13%

17%

16%

31%

35%

6%

6%

4%

7%

6%

7%

6%

5%

4%

3%

4%

3%

5%

2%

2%

7%

9%

8%

6%

4%

7%

2%

1%

1%

2%

3%

3%

Wave 1 (n=500)

Wave 2 (n=500)

Wave 3 (n=500)

Wave 4 (n=500)

Wave 5 (n=500)

Wave 6 (n=501)

Wave 7 (n=828)

Wave 8 (n=800)

Importance of Using Licensed Contractors

Strongly agree Somewhat agree Neither agree nor disagree

Somewhat disagree Strongly disagree Don't know

Awareness That It Is Illegal for Non-Licensed Contractors to Do Work

• Nearly three-quarters (72%) of Oregon homeowners are aware that it is illegal to hire contractors for construction, remodeling, or repair work who have not been licensed by the CCB, an increase of 8-points compared to Wave 7.

• And over three-quarters (80%) of homeowners who are aware of the CCB know this is illegal—significantly higher than the 42% of homeowners who are not aware of the CCB.

Q16. Do you know that it is illegal for contractors to do home construction, remodeling, or repair work for payment without a CCB license?

(Base: All respondents)

72% 64% 63% 61% 62% 67%

58% 59%

16% 27% 34% 32% 31% 31%

36% 35%

12% 9% 3% 7% 7% 2% 6% 5%

Wave 8 (n=800)

Wave 7 (n=828)

Wave 6 (n=501)

Wave 5 (n=500)

Wave 4 (n=500)

Wave 3 (n=500)

Wave 2 (n=500)

Wave 1 (n=500)

Awareness That It Is Illegal for Non-Licensed Contractors to Do Work for Payment

Amount of Licensing Regulation

Q17. Oregon law requires contractors to take a business class, pass a test, complete continuing education, maintain liability insurance and maintain a surety bond to hold an active contractor’s license. Do you think this amount of regulation is too much, about right or not enough? (Base: All respondents)

• While the story is consistent year-to-year, Wave 8 has the highest percentage of homeowners feeling the amount of licensing regulation is too much in Oregon (29%).

• With a drop from the previous wave, two-thirds (65%) of respondents believe that the number of conditions that Oregon contractors need to meet in order to hold a license is adequate.

• Only 5% say current regulation is insufficient.

12%

10%

12%

14%

16%

9%

19%

29%

75%

75%

74%

71%

70%

76%

75%

65%

5%

6%

5%

5%

4%

5%

5%

5%

8%

9%

9%

10%

10%

10%

2%

2%

Wave 1 (n=500)

Wave 2 (n=500)

Wave 3 (n=500)

Wave 4 (n=500)

Wave 5 (n=500)

Wave 6 (n=501)

Wave 7 (n=828)

Wave 8 (n=800)

Opinion on the Amount of Licensing Regulation in Oregon

Too much About right Not enough Don't know

Arrows denote significant difference from Wave 67

Appendix A:

Demographic Profile

Wave 8 Demographic Profile

%# of Years Own Current Home

37% 5 years or less

29%6-10 years

10%11-15 years

7%16-20 years

5%21-25 years

3%26-30 years

7%More than 30 years

2%Don't know

12.08 years Average

D1. For how many years have you owned your current home? D2. Into which of the following groups does your age fall? D3. What is the highest level of education you have completed? D4. What is your yearly household income before taxes? D5. Which of the following best describes your race? (Base:

800, All respondents)

%Age Group

2%18-24

4%25-29

5%30-34

16%35-44

19%45-54

23%55-64

31%65 or older

0%Refused

54 years old Average

%Household Income

3%Less than $20,000

3%$20,000 but less than $30,000

5%$30,000 but less than $40,000

8%$40,000 but less than $50,000

25%$50,000 but less than $75,000

54%$75,000 or more

-Don't know

2%Refused

~$66K Average

%Level of Education

1%Some high school

6%High school graduate

14%Some college

26%College graduate

16%Some graduate school

38%Graduate degree or higher

0%Refused

%Ethnic Background

86%White or Caucasian

1%American Indian or Alaska Native

4%Asian

3%Black or African American

4%Hispanic or Latino

1%Native Hawaiian or other Pacific Islander

1%Something else

1%Refused

Appendix B:

Final Questionnaire

Final Questionnaire

Final Questionnaire, cont’d.

Final Questionnaire, cont’d.