As existing home prices and remodeling growth surge, people are ready to spend
If you’ve been thinking about starting a kitchen remodeling business, it’s time to get serious about it — three big numbers are pointing to a boom in kitchen remodeling.
A booming housing market is driving a surge in remodeling, Harvard’s Joint Center for Housing Studies reports. The institute’s Leading Indicator of Remodeling Activity report spotted the trend more than a year ago, and the latest data shows just how big the remodeling surge has become, with year-over-year remodeling growth expected to hit 19.8% for the last three months of 2013.
What’s driving the trend?
“Homeowners are more comfortable investing in their homes right now,” says Eric S. Belsky, managing director of the Housing Studies center. “Consumer confidence scores are back to pre-recession levels, and since recent homebuyers are traditionally the most active in the home improvement market, the growth in sales of existing homes is providing more opportunities for these improvement projects.”
Consumer confidence has been boosted by two big factors — the economy continues to grow and add jobs, albeit slowly; and existing home sales and prices have been surging.
The National Association of Realtors expects home sales to finish up 8% for the year, and prices are increasing even more quickly, with June’s median existing home price up 15% from a year earlier. A lot of potential buyers who had been sitting on the fence waiting for the market to bottom out are now rushing to buy, and as Belsky notes, that’s big news for remodelers because new homebuyers tend to tackle the most remodeling projects.
Here’s a look at where the housing market saw strongest price growth in the second quarter of 2013, courtesy of the National Association of Realtors. Is your area poised to be a remodeling hotspot?
View Metropolitan Sales Areas Q2 2013 in a larger map
Kitchen Remodeling Franchises Poised for Growth
Why does this matter for someone who owns a kitchen remodeling franchise? Simple: Kitchen remodels are the most common project for homeowners to tackle. Houzz.com, which tracks the remodeling industry and offers project ideas to homeowners, surveyed its users this spring and found that, over the past five years, nearly four in 10 remodeling dollars went toward kitchen improvements.
Kitchen Solvers franchise owners are especially well-positioned to capture those dollars because, while confidence has returned to the housing market, the experience of the Great Recession has caused consumers to look hard for the best values. While most kitchen remodelers can only rip out older cabinets and replace them with new ones, Kitchen Solvers is an expert at high-quality cabinet refacing, which keeps the old cabinet boxes in place while completely transforming the look of the kitchen, taking a kitchen that was still styled for the Brady Bunch era and making it contemporary.
Kitchen Solvers franchise helps owners grow
Kitchen Solvers provides comprehensive training to provide franchisees with technical skills as well as a host of business skills to help grow their franchise. The training is tailored to individuals — if we see that you are a strong sales person, we’ll concentrate your training in other areas; if you are a master craftsman, we won’t spend as much time on the technical aspects of remodeling and will instead focus on how we can work together to maximize your local marketing.
Want to learn more, including what existing franchisees say about Kitchen Solvers? Check out our blog for franchisee reviews and customer reviews and customer reviews and visit our research pages to learn much more about the business, including startup costs. To start a conversation, fill out a form, which will give you access to our free franchise report or give us a call at 806-604-0002. We look forward to talking to you!Back