For a country that was in a recession just a few years ago, the US economy is definitely on the upswing. There’s perhaps no better place to measure this than in the home improvement industry. According to recently released home improvement industry statistics, total home improvement sales for 2019 were $407.1 billion and trending upward. Projected home improvement sales for 2023 are $456.6 billion.
What does this mean for home improvement contractors? To start, homeowners are spending more. Unemployment is low, interest rates are down, and there seems to be a general optimism in the country regarding financial investments and spending. One of the top reasons listed for homeowners renovating in 2019 is that 57% of them finally had the means to do so. 23% of homeowners customized a new home they had just purchased. That’s an encouraging sign for a surging economy.
Best Projects to Bid on for 2020
The home improvement statistics above are important to know if you’re a home improvement contractor. Your business has a positive outlook for the foreseeable future. That means you can put together a targeted marketing campaign and go after the jobs you specialize in. Are you a kitchen and bath renovation contractor? 28% of home improvement projects last year were kitchen projects with a median price of $14,000. 25% were guest bathrooms ($3,500 per project) and 22% were master bathrooms ($8,000 per project).
It should come as no surprise that the most popular home improvement projects are smaller, interior tasks like painting, changing light fixtures, and replacing faucets and showerheads. They may seem mundane, but these small jobs can often be the catalyst to secure bigger contracts. A homeowner with a leaky faucet might require a kitchen remodel. A call to clean out gutters could lead to a new roof. The median spending on roofing last year was $7,500. Sign one of those deals and you can do the gutters for free.
Upgrades can be a lucrative niche also. Last year’s home improvement statistics showed kitchen countertops (93%) and backsplash (87%) as the most popular upgrades. There’s also the option of doing built-in kitchen upgrades such as pantries, cabinets, islands, and breakfast bars. These are primarily carpentry projects that require creativity and good customer management skills.
Whatever your specialty, be sure to take advantage of the upward trends these statistics are showing. There’s a lot of money being spent on home improvements right now and you can capitalize on it. If you are an experienced contractor looking for high-quality financing, reach out to Medallion Bank. We offer a variety of home improvement financing programs to best meet your needs.