By the start of 2023, the Joint Center for Housing Studies expects home improvements and repairs to expand to a nearly $450 billion industry. The home improvement industry has been growing at unprecedented rates since the pandemic. Here’s what’s driving sales today and where the market’s headed.
Growth of the Home Improvement Industry
The industry saw a spike in improvement projects around the house in 2020. Whether it’s a do-it-yourself project or a do-it-for-me one, researchers don’t expect people to stop. Global Market Insights (GMI) predicts the industry will see a 4% compound annual growth rate increase between 2021 and 2027. This growth means the sector will be worth well more than $450 billion in five years.
But why is this growth happening? First, the pandemic led to people spending most of their time in their homes. Because of that, people began to realize everything they wanted to change. The pandemic also opened people’s wallets to remodels. Homeowners were able to use money from deferred vacations, stimulus checks, or unexpected increases in home equity. A study by Zippia found that 76% of American homeowners took on a home improvement project in 2020. That’s more than 62 million homeowners engaging with this industry.
Secondly, American homes are aging. That same study by Zippia found that 59% of homes in the U.S. were built before 1980. Styles that were popular in the 1970s have lost their appeal and functionality. Homeowners are now turning to remodeling projects to modernize and increase the equity of their homes.
This statistic goes for rental home properties as well. GMI found that 65% of people under the age of 35 are living in rented houses. Property owners must keep up with home trends to market their properties to this age group. Smart technology is one feature renters and homeowners alike want to add to their houses.
Most Profitable Home Improvement Business
While the overall home improvement industry is booming, you may still be wondering which sector is best to join as a business owner. GMI anticipates kitchen improvements to see the highest gains with more than a 5% increase through 2027. Kitchen styles are ever-changing. The new trend, according to GMI, is attractive colors and designs among cabinet structures coupled with maximum storage capacity and fire-proof cooking countertops.
When deciding on the most profitable home improvement business, you want to look at which segment allows you to build an endless client list. Cabinets are in every building with a kitchen or bathroom, not just homes.
N-Hance wood refinishing services allow clients to breathe new life into their cabinets. We renew the natural beauty of the cabinets and give them an updated modern look at a fraction of the cost of new cabinets.
Enhance your Net Worth with N-Hance
Join an industry that is expecting only to grow by becoming an N-Hance franchisee. We are one of the most affordable franchise opportunities in the remodeling industry. You will get access to our proven business model that is highly scalable with the potential for high returns. No experience is required! The total investment to begin operations is between $57,823 to $168,545. The average revenue for the top 25% of our franchisees is $1,178,420.* We are backed by a powerful network of restoration and home service brands through the BELFOR Franchise Group.
The pandemic helped kick start the increase by changing how we live and work, so allow N-Hance to kickstart your home improvement business. You will receive the tools to succeed in the remodeling market when you join America’s No. 1 cabinet refinishing franchise. Get started today by requesting franchise information.
*Results for each franchisee differ, and for a number of reasons, these results should not be considered as the actual or probable results that your N-Hance business will realize. Please refer to Item 19 of our latest Franchise Disclosure Document for additional information.