The home improvement sector has reported steady growth since the Great Recession. Kitchen Solvers’ Franchise research shows:
- Remodeling spending rose 3.5% in 2015, with 25% of this directed specifically to kitchens and baths.
- Today, more than $300-billion is spent annually on kitchen remodeling.
- The National Association of Home Builders’ Remodeling Market Index has indicated majority growth in positive market conditions for twelve consecutive quarters.
With this in mind, today’s post explores four market conditions that support Kitchen Solver’s franchise start-ups.
Key Drivers for Market Growth
- Realty market movements are increasing. Realty conditions throughout the country are supporting fervent market movement, which translates to tremendous growth in the remodeling industry. This is because homeowners typically invest in remodeling services either immediately before or after completing a realty transaction. New homeowners usually prefer to make the changes they envision before they’ve totally settled in, while sellers who invest in their cabinets, countertops, or floors can generally court higher bids on the market. The National Association of Home Builders supports this, noting that recently-moved homeowners spend $2,200 more than static homeowners on average.Realty market movements are accelerating as we move further away from the Great Recession. According to the National Association of Realtors, realty sales rates are higher than they’ve been in over 8 years, with certain regions of the country enjoying year-over-year gains.
- Historical home building trend encourage modern remodels. According to research in the Census Bureau’s American Housing Survey, the total number of houses has more than doubled since the 1970s. Since many of these properties were built in the 1970s, 1980s, and 1990s, the majority of American homes are ripe for remodeling.
- Retiring Baby Boomers have bolstered remodeling market expenditure. Research by the Census Bureau’s American Housing survey found that remodeling activity begins between 25-30, then tapers off briefly before surging upwards past 45. Today, the American population is aging in greater numbers than even in history, with 1 in 5 people projected to be above the age of 65 by 2020. As these Boomers continue to retire, many are taking the opportunity to upgrade their living spaces to increase their comfort and happiness as they “age in place.”With more than 40% of remodeling spending coming from the Baby Boomers alone in recent years, the growth of this high-value demographic is a huge boon for the remodeling industry. While past estimates of remodeling market expenditures have been highly favorable for Kitchen Solver’s franchise owners, the future’s looking brighter than ever!
- Technological improvements on all sides of the remodeling equation have led to increased accessibility to home upgrades. As technology continues to improve, homeowners are finding themselves able to do more for less money – look no further than Kitchen Solver’s cabinet refacing service for an example of this theory in practice. Manufacturing, transportation, and installation has gotten easier, and as their overhead shrinks, remodeling companies are able to pass the savings down to their clients in turn. Better technology and lower prices means increased access to remodeling services, and more business for your Kitchen Solver’s franchise!
The Kitchen Solver’s franchise is well-positioned to take advantage of this proven market growth. If you’d like to learn more about franchise ownership, how much you can make, and what it takes to get started, visit https://www.kitchensolversfranchise.com and book a free consultation with a member of our team!Back