It’s a good time to be a home renovation franchise owner.
Overall spending on home improvements and repairs to the US housing stock continued its upward trend in 2017. In fact, the expenditure was measured at a record-setting $424 billion, representing a 10% increase from 2015 and more than 50% gain from the low in 2010 (Joint Center for Housing Studies of Harvard University, 2019, p. 4).
What’s causing these spending surges, and how can you take advantage of home renovation market movements? Today’s post explains.
Why is homeowner improvement spending skyrocketing?
Year after year, home remodeling expenditures are keep rising–by the billions!
According to the Joint Center for Housing Studies of Harvard University, spending on homeowner improvements has increased from $128-billion to over $233 billion annually between 2000 and 2017. Even the annual growth rate is impressive: between 2016 and 2017, spending on homeowner improvements rose by $15-billion.
In fact, in the years since the Great Recession, spending on home improvements, additions, and routine maintenance to both owner-occupied and rental properties has both increased the value of existing stock and contributed “a dominant share of residential investment.”
One possible explanation is that most homes are older and in need of upkeep and redesign. In the Joint Center for Housing Studies of Harvard University report “Improving America’s Housing 2019,” researchers highlighted the fact that almost 80% of America’s 137-million homes are now at least 20 years old. Moreover, at least 40% are more than 50 years old. Unsurprisingly, the aging of the US housing stock has been a boon to the home improvement industry.
Another possible explanation is found in the steady uptick in house prices in many markets. First, rising home prices may encourage homeowners to settle in rather than buying a new home when prices are high. As such, the homeowner may spend some money on home improvement to freshen up their living space. Additionally, rising home prices mean growing equity, which gives homeowners the means and incentive to undertake big-ticket home improvements.
A third explanation offered by the Joint Center for Housing Studies of Harvard University is America’s unprecedented demographic shift. The aging population is bigger than ever and growing fast–by 2030, 1 in 5 Americans will be over the age of 65. Older adults tend to have higher homeownership rates and greater household incomes, which allow them to pay for major renovations and replacements.
But whatever the underlying cause, the home renovation spending surge is undeniable. Let’s talk about how you can take advantage of these incredible market movements.
Take advantage of home renovation market movements with Kitchen Solvers
Our home renovation franchise offers the following benefits:
Established brand name–34-year history and reputation for integrity and customer service, plus thousands of references nationwide
Custom-order capabilities–all products and services are custom-ordered to your client’s home design
Low overhead–our model is home-based and does not require a large staff or large equipment package
Ideal work-life balance–enjoy big profits and job satisfaction without late nights, grueling labor, or uncompromising work schedules
Unparalleled training and support–no experience or home renovation skills required
Fast and affordable start-up–open your doors for business faster than the competition and for a fraction of the price.
Visit our website to learn more about our home renovation franchise and why there’s no time like the present to get started!