Americans spend an estimated $400 billion each year on home improvements. Many factors are contributing to its rapid expansion, including rising real estate prices, homeowners being able to finance renovations easily, and smart home features becoming increasingly popular. All these factors combined have increased revenue streams for remodeling companies significantly.
Recent mortgage rate hikes have made renovations more costly for homeowners, prompting professional contractors to slow down on projects while encouraging some to undertake DIY initiatives themselves, according to a survey from Today’s Homeowner.
One major contributor to this shift could be higher interest rates; therefore, homeowners are becoming more wary about using home equity lines of credit or cash-out refinances to fund home improvement projects; thus resulting in less projects taking place overall by 2023.
According to a report released by Bank of America, long-term trends bode well for the home improvement industry. For instance, millennials are more likely than previous generations to stay in their current homes and renovate them; additionally they tend to live in suburban or rural locations which will support their need for home improvement products and services.
Home improvement is an expansive industry that can be highly lucrative for anyone starting their own business. There are various opportunities to enter this sector from selling materials to providing labor. If you’re thinking about venturing into home improvement as your own venture, be sure to educate yourself as much as possible on its industry to make informed decisions for your venture.
Also, it is wise to research the home improvement market and competition thoroughly in order to assess whether there is demand for your product or service in the marketplace. Furthermore, it’s crucial that you identify any barriers to entry, such as licensing requirements and regulations, that could impede entry. Finally, finding a mentor who can guide your through the process of setting up your own home improvement business will help prevent costly errors that could ultimately result in failure – following these tips could increase your odds of success!
