Why A Change In The Rate Of Remodeling Activity Means You Need The Support Of A Strong Franchise
The remodeling industry is growing, so investing in a business within the sector is wise. However, not just anybody can start a business and strike it rich.
Remodeling Growth Trends For 2023
The home remodeling industry has been healthy for quite a long time now. However, at the onset of the Covid-19 pandemic in 2020, many worried that the industry would see a large dip. In fact, quite the opposite happened. A combination of low interest rates, high property values, people being stuck inside their homes, families having extra discretionary income that would otherwise be devoted to travel, and social media trends all caused a dramatic spike in demand for home remodels.
Spikes never last forever; we all know this. But there doesn’t appear to be any dramatic drop in demand for home remodeling because many of the above factors still apply in 2022 and will continue to do so into 2023. The growth rate is expected to cool off slightly, however. The Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University released their Leading Indicator of Remodeling Activity, or LIRA, at the end of April 2022. It stated that expenditures for improvements and repairs to the owner-occupied housing stock are still forecasted to grow throughout 2022 and into early 2023, but at a decelerated pace.
Some people get worried when they see growth decelerate, but it’s often a good thing. A slow deceleration is the best way for an industry or business to handle an inevitable decline in demand. The LIRA projects year-over-year increases in residential renovation and maintenance spending to peak at 19.7% in the third quarter of 2022, and then slowed to 15.1% in the first quarter of 2023.
While not as impressive as 19.7%, 15.1% growth is still quite significant. According to Abbe Will, the Associate Project Director of the Remodeling Futures Program, “The level of annual expenditures for home improvements and repairs is set to expand to nearly $450 billion by the first quarter of 2023”. And that’s a huge figure.
You Need The Right Allies.
You can still make a lot of money as a kitchen and bathroom remodeler. But you need to go about it wisely. Going it alone in this market is unwise because you have no margin for error and no way to stand out in a competitive field. As a Kitchen Solvers franchise partner, you can benefit from our experience, support, and brand name recognition to flourish in what is still a growing market.
To learn more about Kitchen Solvers, please do not hesitate to get in touch with us.Back