Why Home Remodeling Businesses Can Expect To Have Plenty Of Business Going Into 2023
There’s a lot of talk of inflation or even recession lately, but buying a home remodeling business can still be a wise investment. This article discusses why.
A home remodeling business helps people remodel and renovate their homes. Some take on big jobs, such as knocking down interior walls or installing new floors. Other jobs are quicker to do, such as installing new cabinets. Focusing on kitchens and bathrooms can be a particularly smart idea. These rooms get a lot of wear and people spend a lot of time in them, so they’re more prone to change how they look. Home remodelers can get a lot of business from kitchen and bathroom jobs.
Home remodel jobs, even relatively small ones like installing a few kitchen cabinets, aren’t cheap. With inflation rising and a possible recession looming, people are being more careful with their money. This doesn’t mean people are not remodeling, but instead cautious about spending money and may look more into lower cost options or even financing options. In 2020, a combination of low interest rates, people being stuck inside, and fewer options for where to spend their money led to a surge in demand for home remodels.
This increased demand has continued into most of 2022. But now interest rates are rising, and we can expect to see demand taper off a little bit. Does that mean home remodeling businesses won’t have any customers in 2023? No.
If we’re heading into a recession, that will hurt many businesses. During a recession, people have less money, so they spend less money. Overall, this is true, but it’s not as if every American will cut back their spending on every product or service equally.
With high interest rates, it’s logical that housing sales will slump. Many homeowners will opt to make do with their current home rather than move and sign a new mortgage. So what will they do with that money they were thinking about putting towards a new property? In many instances, it seems that homeowners are putting that money into remodels to make their current homes into something that more closely resemble their dream homes.
There’s some evidence that this is already happening. Major US hardware chains are reporting increases—up to 19% in the third quarter of 2022—in their commercial or “Pro” business. The available data point to continued strong demand for home remodeling businesses going into 2023.
At Kitchen Solvers, we are always looking for opportunities to work with qualified candidates as one of our home remodeling franchise partners. To learn more, please do not hesitate to get in touch with us.Back