3 Factors Driving Home Improvement Franchise Growth in 2020
Home improvement franchise opportunities are more valuable than ever. Today’s post runs down the top-3 factors driving this industry’s unprecedented growth in 2020.
Homeowners Are Going Green
As Curtin (2007) writes in the Managing Green Issues journal, “environmental consciousness is the hallmark of a prosperous society.” It just so happens that environmental consciousness is also the hallmark of a prosperous home improvement industry.
Homeowners are increasingly looking for ways to reduce their eco footprint with modifications to the home. That means improving the sealing, installing high-efficiency appliances and low-flow bathroom fixtures, using low-VOC paints and NAUF woods, and choosing eco-friendly flooring options. These all fall under the domain of home improvement franchise services, which means simply that growing environmental consciousness means growing demand for home improvement.
Millennials Expected To Purchase Homes In 2020 En Masse
Boomers were the most active remodelers in 2018, accounting for roughly 60% of all remodeling activity overall and 66% of rural remodeling projects, according to the U.S. Houzz Kitchen Trends Study.
But that all might change very soon.
According to a new report from Realtor.com, Millennials will be driving the housing market for the foreseeable future. In 2020, nearly 5 million Millennials are turning 30, a time when many people purchase their first homes. This cohort is expected to take on more than half of all mortgages next year, totaling more than Generation X and Baby Boomer populations combined.
Remodeling goes hand in hand with new home ownership. Houzz researchers indicated that more than a quarter of suburban kitchen upgrades (28%) and a third of urban center renovations (34%) were driven by recent home purchases in 2018. Based on current predictions, Millennials will be demanding home remodeling services en masse in 2020 and beyond.
Clearly, this surge of new home ownership translates to business for home improvement franchises. Additionally, with many Millennial homeowners likely to invest modesty in their first homes, this presents a unique opportunity for home improvement companies offering low-cost or cost-effective remodeling services, such as storage solutions and cabinet refacing.
All Realty Roads Lead To Kitchen And Bathroom Remodels
The real estate market is fickle, but it seems all roads lead to kitchen and bathroom remodels.
An active market is good any way you slice it. We established how home buyers love kitchen remodeling in the previous section, but sellers might love it even more. According to research by the National Association of Realtors, kitchen and bathroom additions add more than twice the approximate resale value of new bedrooms, which makes them a very popular option for those looking to sell their family home or flip a new property.
And believe it or not, an inactive real estate market is good for business, too. When Houzz researchers polled survey participants about the events that triggered their kitchen renovations, 41% said that it was simply that they “could no longer stand the old kitchen.” Many homeowners who choose to wait out a turbulent or frigid real estate market use kitchen or bathroom remodels as a kind of compromise—they don’t get to build or buy a new kitchen space just yet, so they’ll punch up their current one instead (and add some future resale value while they’re at it!).
Explore Home Improvement Franchise Opportunities Near You
Visit https://www.kitchensolversfranchise.com to learn all about starting a business with no experience via the Kitchen Solvers home improvement franchise opportunity.
Curtin, T. (2007). The Rise of Environmental Consciousness and Conscience. In Managing Green Issues (pp. 9-16). Palgrave Macmillan, London.Back