How Big Is the Kitchen and Bath Remodeling Industry?
The Remodeling Industry Is Growing Quickly — Kitchen and Bath Remodeling Franchises are Positioned to Succeed
DreamMaker franchisees have seen average unit store sales skyrocket 68% overall from 2011 to 2015. During the same timeframe, the overall remodeling industry grew 17.2%, according to the Harvard Joint Center for Housing Studies. The remodeling industry generates over $300 billion in annual spending, according to the Joint Center for Housing Studies at Harvard University — and the aging of America’s housing stock is expected to drive continued growth, which is great news for any kitchen and bathroom remodeling franchise.
Research by the Joint Center of Housing Studies, drawn from the Census Bureau’s American Housing Survey, shows that remodeling activity peaks for homes that are about between 25 and 30 years old, trails off slightly, then stays at a relatively high level as homes continue to age. An unprecedented number of American homes are either in, or entering, their peak remodeling years. The total number of households has doubled since 1970. With the bulk of those homes having been built in the 1970s, ’80s and ’90s, there are tens of millions of homes that have remodeling needs.
Retiring baby boomers equals opportunity for a bathroom remodeling franchise
At the same time, as Baby Boomers enter retirement, many are taking the opportunity to prepare their homes so that they will be enjoyable and functional spaces as they age. According to Hanley Wood research, 41% of remodeling spending has come from Baby Boomers in recent years — and they are a core demographic for DreamMaker Bath & Kitchen franchises, since they value excellent design and are more attracted to quality and professionalism.
DreamMaker kitchen and bathroom remodeling franchise businesses reported average gross margins of more than 45% on the jobs they performed in 2015* — much higher than the margins experienced by most remodelers. The increased margins are a result of leveraging buying power, strong vendor relationships, and systems that help remodelers build thorough and more accurate job estimates.
* Details provided in DreamMaker’s Franchise Disclosure Document.