The home improvement industry is continuing to grow. Here’s an overview of the market and why it’s growing even during these unprecedented times.
The Home Improvement Business: A Market Overview
The market encompassing the home improvement category is broad, making up a significant portion of the overall U.S. economy. The industry encompasses the sale of building materials, appliances, décor, and services offered by contractors, decorators, and tradespeople who build, install, and improve homes. Popular segments include interior and exterior house painting, kitchen and bath makeovers, outdoor improvements to gardens and patios, pools and spas, landscaping and housecleaning services, plumbing, electrical work, and floor coverings. A home improvement franchise like Floor Coverings International is a perfect example of a growing business in the home improvement segment.
While the onset of the pandemic kept everyone at home, cutting off travel, closing businesses, and shuttering schools, the home improvement industry was deemed essential and remained open. Homeowners found themselves with money usually spent going out to restaurants and taking vacations growing in their bank accounts. At the same time, being at home highlighted how upgrades and renovations could improve homes now doing double and triple duty as schools and workplaces, welcoming back adult children and elderly parents. The need for more functional entertainment spaces, work-at-home and study areas, updated kitchens and bathrooms, home gyms, swimming pools and spas, patios, and gardens became clear. Homeowners finally had the time and the funds to do the projects they’d long put off or didn’t know they wanted.
Why the Industry is Growing
The home improvement business is bigger than other industries like full-service restaurants, department stores, health and drug stores, clothing, and accessories stores. And with a current annual revenue of over $550 billion, the industry is projected to reach nearly $600 billion by 2024. From 2021-2027, the industry is expected to see a Compound Annual Growth Rate (CAGR) of 4.1%.
Several factors are contributors to this phenomenal outlook for the home improvement industry:
- Home values are up: Homeowners’ equity grew approximately $55,300 in 2021. With greater home equity, homeowners had options to finance home improvements, adding even more value to their homes.
- Older homes: Our homes are aging. The average age of a home in the U.S. is 40 years. With 59% of American homes built before 1980, upgrades and maintenance are overdue. Every generation is in on the renovation wave. According to Zippia, 52% of Baby Boomers, 32% of Generation X, and 12% of Millennials completed home improvement projects in 2020.
- There’s a housing shortage: This tight housing market has led to record-high real estate and rental prices. Rather than moving to new homes, people are choosing to stay put. Nearly half of American homeowners live in the first home they purchased. Making their current home comfortable for growing families and evolving needs means investing in upgrades and remodels.
If you’re considering becoming a business owner in this hot area of the market, a home improvement franchise is a smart way to get into the game. A franchise with a mobile showroom business model like Floor Coverings International is an even smarter idea.
Floor Coverings International: The Future of the Flooring Industry
Floor Coverings International is the custom flooring home improvement franchise modernizing how consumers shop for new flooring. We’re doing for the flooring industry what Amazon did for the retail industry. With our mobile showrooms full of over 3,000 flooring samples, we bring the retail experience directly to our customers’ homes.
As a Floor Coverings International franchisee, you’ll be directly interacting with consumers, using your creativity to help them choose the best floor coverings for their home improvement project. We offer the best in carpet, tile, vinyl, and hardwood. Your customers can see how various floor covering products will look in their home — safely, conveniently, and without the hassle of having to commute to a big-box retailer.
The Floor Coverings International business model offers quality of life for franchisees, a good return on investment, and the chance to grow your business over time in an industry that’s hot. Are you ready to join the revolutionary home improvement brand disrupting the $48 billion custom flooring industry? Fill out a Request Information form today.