Focus on High ROI Projects
After several years of a home improvement boom, things are slowing down.
According to The Joint Center for Housing Studies of Harvard University latest Leading Indicator of Remodeling Activity (LIRA) report home improvement spending will decrease from $486 billion to $457 billion in 2024.
During the Covid-19 pandemic home improvement boomed. Now more people are back to work at the office so creating usable home space is on the decline. Economic uncertainty, declining home appreciation values, slow home sales and increased interest rates will make homeowners think twice about home renovations.
Adjusting to the Downturn
Contractors should focus on small lucrative projects and high ROI projects. Owner-occupied homes will be more inclined to do practical projects that add value. Concentrate on and market the services you offer that add value to a home. Kitchen and bathroom remodeling add value and improve the home living experience.
The economic uncertainty will keep homeowners from remodeling and moving up to a larger home. Maintenance and repairs will be on the rise.
The boom is gone for now. Home improvement spending is leveling off so plan and position your business accordingly.
