How to Thrive in the Changing Home Renovation Market

Challenges and Opportunities in the Home Renovation Market

Refresh Renovations’ Adaptable Franchise Model Offers Resilience in All Climates

Market challenges often create opportunities for entrepreneurs who have the vision and drive to take advantage of trends. For example, consider the current impact of higher interest rates on the homebuying and renovation market.

According to Zillow, home sale listings are down 14% nationwide compared to pre-pandemic levels. That’s because homeowners don’t want to give up their low-interest mortgages to trade up. According to Redfin, more than six in 10 current homeowners have an interest rate below 4%, and a quarter have one below 3%. That’s great for homeowners’ monthly cash flow but makes it difficult for many to justify moving to get a more updated look or more space for their family. So what’s a homeowner to do with that extra cash? They renovate!

Market Resilience

The Refresh Renovations franchise model is resilient because it delivers a proven operating process and is also well-suited to benefit from both sides of market cycles. In boomtimes when homes are trading more freely, renovation projects can help homeowners sell their home for a higher price or alter a home that needs some adjustments (i.e. the house is in the right neighborhood, but the buyer wants to update the kitchen or add a room).

The home renovation market is huge and continues to grow.

Conversely, in a higher-interest rate environment such as we’re experiencing now, homeowners choose to stay put and renovate their existing homes to create the extra space they need or to get the updated look and functionality they crave. The home renovation market is huge and continues to grow. According to Grand View Research, the U.S. residential remodeling market size was estimated at $527.36 billion in 2023 and is projected to grow at a compound annual growth rate of 4.6% from 2024 to 2030.

Benefits for Franchisees

The Refresh model provides the perfect opportunity for entrepreneurs to create a significant home design and renovation business even if they come from outside the renovation industry. We have perfected our processes over 15 years across nearly 100 locations. Here in the U.S., we are an “emerging” brand and prime territories are available, but franchisees benefit from our mature systems and experience.

Starting a Refresh Renovations design-and-build business is extremely cost-effective due to the low franchise fee and work-from-home format. Meetings with homeowners are held on-site or at retail outlets when it comes time to select finishes and fixtures. Only a branded vehicle and basic computer equipment are needed. All of our tools and training materials are cloud-based.

Flexible Model

Our design-and-build approach is very flexible. We can take on small or large projects in any room or outside the home. This means we can cast a wide net when advertising to homeowners. We’re not limited to only kitchens or only room additions, for example. The median homeownership period in the U.S. is 13 years, which has more than doubled over the last two decades. Think about all the life changes you go through over 13 years and how your needs change. Those changing needs, as well as simple wear and tear on homes over time and homeowners’ desire to keep their homes updated, are the engine driving constant demand for renovation services.

Refresh Rennovations franchise business

This also means our franchisees see high repeat business. Often clients will start with one project and move to the next and the next. We become “their” builder. We build long-term relationships with homeowners— we’re not “one-and-done.” From a lead-generation and referral standpoint, this is also beneficial to the growth of the business. Because our projects are custom design and build, there is also less price competition. This provides built-in margin resiliency and customer satisfaction because clients can see their home dreams become a reality.

Refresh Renovations’ Success Profile

Refresh Rennovations franchise business

Strong candidates for Refresh Renovations have:

  • Excellent people skills.
  • A desire to create a substantial design-and-build renovation business.
  • Strong business acumen.
  • Confidence in their own abilities and a desire to learn the industry.
  • Commitment to follow Refresh’s proven processes.
  • Willingness to get out into the community to build a local brand and drive visibility through home renovation trade shows and events.

For more information about the Refresh Renovations franchise, visit https://www.refreshfranchiseopportunities.com/.

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Paul English is CEO of Refresh Renovations North America, a home-renovation company that provides a low-stress remodeling experience.
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