Your home is more than where you hang your hat. It’s the heart of all your family memories and a source of comfort and safety. As it happens, homes are also one of the biggest investments you will make. To protect that investment, homeowners understand it’s crucial to keep their spaces in top shape. That’s where the home improvement industry comes in.

The need to keep homes looking and performing their best has led the home improvement industry to thrive. Homeowners spend billions of dollars on annual renovations, upgrades, and simple repairs. Harvard University’s most recent Leading Indicator of Remodeling Activity (LIRA) report projects that national spending on remodeling and repairs will grow to $509 billion in 2025, representing a stable 1.2% increase from 2024.

Overall, investing in the home improvement industry is a smart move for first-time and seasoned entrepreneurs alike. Its steady, stable growth is not as reliant on the economy as other industries, creating consistent opportunities for business owners. Are you thinking about entering the home improvement market? Here are some vital stats and trends you’ll want to know.

Fast Facts About the Home Improvement Industry

• The U.S. home improvement industry is anticipated to be valued at $600 billion by 2027
• The U.S. residential remodeling market was estimated at $545.61 billion for 2024 and is projected to grow at a continuous annual growth rate (CAGR) of 4.6% through 2030
• While DIY repairs and upgrades are popular, specialized contractors and tradespeople lead the residential remodeling market with a revenue share of 81.8%

What’s Behind the Growth?

Because many of the repair and renovation services that businesses within the home improvement market provide are often deemed essential, the industry is considered recession-resilient. People seek these services out regardless of how the economy is doing. As a result, the home improvement industry has been healthy for quite some time. That said, recent developments have also led more homeowners to pursue optional home improvement services.

It’s hard to deny the lasting impact of COVID-19 . Even five years later, we still spend more time at home than we did before the pandemic. Remote work is here to stay, and while some have begun returning to the office, even those who only work remotely on a hybrid basis are working from home a few days a week. When you’re spending more time inside your house, it’s hard not to notice the things that aren’t working or looking as they should.

The pandemic has changed our economy, too. Inflation has been an issue for much of the 2020s. While it’s down significantly from its peak of 9.1% in 2022, inflation has been creeping back up over the last few months. Higher inflation often leads to higher interest rates, and that’s certainly the case for mortgage interest rates. According to the St. Louis Fed, mortgage rates have risen by over 3% since the start of the pandemic, with rates in the 6-7% range for the last year. Home prices are also increasing, with a forecasted year-over-year increase of 4.1% in 2025.

Under these economic conditions, homeowners who might otherwise be interested in buying a new home are more inclined to stay where they are and make improvements. This creates more demand for the repairs, renovations, and upgrades that power the home improvement industry.

Franchising in the Home Improvement Market

The home improvement market, or home services market, encompasses many different specializations. Far more than renovations or remodeling, home services can include any trade that improves or maintains the home. Plumbers, electricians, house cleaning services, landscapers, decorators, and many others are part of this industry.

The continued growth of the home services industry has drawn the interest of many savvy entrepreneurs. While there is lots of opportunity in the home improvement market, it may also mean your area is oversaturated with home improvement businesses. You’ll want to do thorough market research to determine which kind of home services business your community will support. You might also consider franchising instead of starting an independent business.

As a franchisee, you start your business with benefits that independent business owners lack, namely an established brand name and proven business model. Buying a franchise means buying into a system that has already been tested and refined, so you have less legwork – and guesswork – to do out of the gate. You’ll also receive training and ongoing support from the franchisor, which can help you avoid costly mistakes and increase your chances of success.

Better yet, a home improvement franchise gives you access to a network of other franchisees who can offer advice and support. You’ll be part of a community of like-minded business owners who share your goals and challenges, and who can help you navigate the ups and downs of entrepreneurship.

Many keen entrepreneurs find that the need for specialized skills and experience is a major hurdle in opening their own home improvement business. It can take years to earn the skills required to operate one in most states. Franchising allows you to capitalize on the profitable home improvement market without honing those skills. With the right brand, you can focus on running the business while leaving the technical work to trained professionals. Home Franchise Services helps you do just that.

Leading the Way in Home Services

Home Franchise Concepts has been a leader in the home services industry for thirty years. Our purpose is to enhance lives and communities by providing our partners a trusted path to financial independence. Our company includes ten superior home services franchise brands: Budget Blinds, PremierGarage, The Tailored Closet, Concrete Craft, AdvantaClean, Lightspeed Restoration, Aussie Pet Mobile, Kitchen Tune-Up, Bath Tune-Up, and Two Maids. During the franchise process, we’ll help you determine which of our brands fits your lifestyle and business goals.

Contact Home Franchise Concepts Today

Make your mark in the home improvement industry as a member of the Home Franchise Concepts family. To start a conversation, submit our franchise inquiry form.