The covid-19 pandemic threw a kink in the economy and hit the real estate market with a tidal wave. Covid-19 forced people to stay inside their homes. Now, people are turning their current homes into their dream homes with renovations.
According to the Joint Center for Housing Studies of Harvard University (JCHS), year-over-year increases in housing renovations will hit 19.7 percent this year. For perspective, at the beginning of 2020, it sat at 3.2 percent. Here’s why the demand for kitchen and bathroom remodeling is at an all-time high.
People Staying in their Homes
As everybody emerged from isolating themselves for more than a year, people began spending a lot of money, causing inflation to rise. Subsequently, inflation affected mortgage rates, which recently hit a 13-year high. With the higher mortgage rates, fewer people are looking to buy a new home. Instead, they’re renovating their current one.
At the same time as high mortgage rates, it’s a seller’s housing market. Homes are now selling way over their value. As a result, we are seeing a decline in the level of activity in the housing market, allowing the remodeling industry to grow.
On top of it all, there is a shortage of building supplies. The backlog is causing a delay in construction of new homes. Therefore, people are settling to stay in their current home and remodeling to make it feel newer.
Cue remodeling franchises like N-Hance. We are the No. 1 cabinet refinishing company in the U.S. We help our customers stay in their homes longer by refinishing their kitchens and flooring without compromise.
Settling on Fixer-Uppers
Millennials are jumping into the housing market, and with the high prices, they are settling for more fixer-uppers. John Burns Real Estate Consulting American housing survey found that younger homeowners are 35 percent more likely to do remodeling than the previous generation of homeowners. When explicitly discussing kitchen and bathroom remodeling, that number increases to 40 percent.
The population in the U.S. is growing, but space is not. It is the same for houses. We are running out of land to build on in metropolitan areas. In 2021, the National Association of Home Builders reported that 50 percent of homes were built before 1980. As a result, people must buy older homes to get a prime location. With older homes come necessary renovations. Kitchens and bathrooms are one of the first rooms to start remodeling. These two areas will recoup the remodeling costs and create actual equity.
More People Working from Home
The pandemic allowed people to work from home in jobs that before covid-19 were not an option. As a result, more people have continued working from home. Slack, a workplace messaging program, found that 72 percent of workers prefer a hybrid or remote-office model over office models. So, workers who did not have that as an option at their current job sought one that offered it. Consequently, people working from home are now noticing rooms they want to update while spending entire days at home.
While they are working, they can’t also renovate their home, forcing them to turn to remodel franchises. At N-Hance, we aim to cause as minimal disruption in our customers’ lives as possible. The process includes trying not to leave residual dust or odor like typical refinishing processes.
More People Turning to Professionals
An Axiom survey found that 56 percent of people say they would turn to professionals for help when remodeling. Specifically for kitchen and bathroom remodeling, a 2022 outlook says 85 percent of remodels will include professional involvement. That same outlook found an anticipated growth of 19 percent for the second year in a row, with kitchen and bathroom remodels reaching a record $199 billion in revenue. Mid-spend projects are expected to see the highest growth with a 25 percent increase.
N-Hance allows people to transform their homes at a fraction of the cost. Capitalize on the renovation boom by starting a remodeling franchise with N-Hance.
Open a Remodeling Franchise Today
Are you thinking of joining the remodeling industry during this booming time? There are benefits to joining a home improvement franchise over starting your own business. JCHS finds that large-scale remodeling companies see higher revenues. Key contributors include efficient operations and quick scheduling and installation. Both factors lead to shorter job cycles and higher profit margins. Being a part of a larger company also gives you access to favorable prices on materials.
When you become an N-Hance Franchise owner, you are not only joining a record of success, but also access to valuable resources like training, marketing, and ongoing support. There is reduced risk with a proven, scalable model like N-Hance. Find out how you can get started today by requesting franchise information.