A home remodeling boom spells opportunity for entrepreneurs.
By Rieva Lesonsky
The housing market is booming again, and according to CNBC that means there’s more opportunity for a broad spectrum of entrepreneurs to cash in on the burgeoning market. As consumers’ equity in their homes increases, they’re taking that money and investing it in remodeling projects.
CNBC cites a new report from Harvard’s Joint Center for Housing which says the growth in the home remodeling and repair markets will hit 8 percent by the beginning of next year, nearly double its historical average. The report says by mid-2017 the national remodeling market “should be very close to a full recovery from its worst downturn on record…with annual spending set to reach $321 billion.”
Factors driving this surge, in addition to the increase in home equity, include mortgage rates that are near record lows and rising consumer confidence.
So what services are reaping the rewards? According to CNBC, Home Advisor, an online home services marketplace, says that home remodeling like kitchen and bath remodels are always popular. But there’s a current demand from homeowners to add insulation to their homes—and multiroom remodels are up 67 percent from last year.
But it’s not just architects and contractors who stand to benefit from the boom. The Harvard report says part of the demand for remodeling services is from homeowners preparing their homes for sale, while the rest is from homeowners “who are looking to customize their homes to fit their needs.”
This means if you sell products such as furniture, home décor, appliances, etc., you’re sure to reap the rewards as well.