Kitchen Solvers Cabinet Refacing Franchise Notes Uptick in Remodeling Activity
Remodeling Growth Expected to Hit Double Digits
LA CROSSE, WI--(Marketwire - Mar 26, 2013) - Kitchen cabinet refacing and remodeling franchise Kitchen Solvers saw this coming. For the past year, we've been encouraging entrepreneurs to look at the remodeling industry, because our research indicated that it was poised for a boom.
Now the data is in. The Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University says growth in remodeling spending, which had been increasing at 2-3% since the end of 2011, rocketed upward 8.2% in the 3rd quarter of 2012. The institute projects growth to hit 10.6% for the first three months of 2013, 16.8% in the second quarter, and 19.7% by September.
Kitchen cabinet refacing's niche
Kitchen cabinet refacing is a good business for a couple of reasons:
One, kitchen remodels are popular because they transform the look of a house and have one of the highest returns on investment.
Second, cabinet refacing can lower costs. Refacing gives well-built old cabinets a major facelift -- doors and drawer fronts, hinges and handles are removed, and the exposed cabinet face-frame is covered with factory finished and stained furniture-grade plywood. New cabinet doors and drawer fronts, self-closing hinges, and decorative handles are installed to create a gorgeous new look that is easier on the budget.
Demographics point to sustained growth
The Joint Center expects industry growth to continue for a decade or more, citing two main trends:
- Recovery: Home prices are rising again. Standard & Poor's/Case-Shiller home price index showed prices up 6.8% in December compared to a year earlier, and low interest rates are encouraging owners to tackle neglected home improvements. To quote the Joint Center: "Renewal of the nation's housing stock is getting underway... the future market potential is immense."
- Generational demographics: Baby Boomers are readying homes for retirement -- remodeling spending by people age 55 and over was 20% higher in 2011 than it was a decade ago, the Joint Center says, even after adjusting for inflation. By the time Boomers finish retiring around 2030, the even larger Echo Boom generation will be in their peak home-buying years.
To learn more, visit www.KitchenSolversFranchise.com.
Kitchen Solvers President