Why You Need to Start a Home Improvement Business TODAY

Even though the economy is improving day-by-day and a growing number of families now feel as though they are in a financial position to buy a home, the sad truth is, most homes are simply unaffordable in many areas of the country. Home improvement businesses are in high demand because it is often cheaper to improve the home you have rather than getting in over your head in a mortgage payment. But, private homeowners aren’t the only people seeking quality craftsmen, even though it is all related to the cost of homes in today’s market. There has never been a better time in history to start a home improvement business and here are just a few reasons why.

A Look at the Rapid Rise in Real Estate Costs

Consider for a moment just how quickly and how high house prices have jumped in major markets like Southern California. Without going into the details of the market crash, largely due to sub-prime lenders in the mortgage market, it can safely be said that in the early days of the Great Recession, many mom and pop landlords were forced to sell off their rental properties, and for very cheap prices. (That is, if they weren’t foreclosed on first!)

Major real estate investment companies like the giant private equity firm, Blackstone Group, bought up a huge amount of properties and launched Invitation Homes to provide single-family rentals, primarily in Florida and California. They paid rock bottom prices for real estate which today sell for a price 67 percent higher than in 2012, making the cost of an average home in SoCal just around $500,000. Realistically, how many homebuyers can afford that price tag – or even qualify for a loan?

But, How Does This Relate to a Home Improvement Business?

By this point, you may be wondering how the cost of real estate has anything to do with a home improvement business. It’s all interrelated, really. Not only are there a growing number of homeowners willing to sink money into their current homes to add living space or update kitchens, baths, and laundry rooms, but large rental groups are also feeling the crunch due to a lack of qualified and experienced home improvement tradesmen.

Many large rental companies will keep repairmen on the payroll, but when it comes to updating or renovating homes they intend to rent out, that work is usually awarded to private contractors. Imagine the cost involved in keeping a home improvement team on staff in literally every city they hold property in? That would not be cost effective at all. Therefore, these large conglomerates seek contractors to work with at much less the cost of paying a full-time staff.

In the End – Demand Exceeds Supply

What this boils down to is the old supply and demand principle. There is a huge demand for home improvement contractors and a short supply of qualified professionals. If you have ever considered going into the home improvement business, now is the time. The demand is high, but the supply of qualified craftsmen is low. In short, you need to start a home improvement business TODAY!