The Resilience of the American Consumer is an Entrepreneurial Dream

Consumers haven’t had much to be enthusiastic about over the last two years, but recent reports show that the American consumer is resilient and optimistic, particularly when it comes to their homes.

While fewer people are purchasing new homes due to an expensive and competitive housing market, data show that more people are choosing to invest in home improvements. Remodeling not only allows homeowners to customize their homes to their liking, it can also increase a home’s value.

This is great news for entrepreneurs in the home improvement and related services markets.

Adding fencing, decks and patios, and improving lawn features and outdoor lighting are just some of the most popular ways homeowners can incorporate some of their own personalities into their homes.

A Resurgence in Remodeling

According to the Joint Center for Housing Studies of Harvard University’s Leading Indicator of Remodeling Activity (LIRA) report, annual spending is expected to grow from $472 billion to $477 billion through the third quarter of 2025.

While homeowners always want to make their homes more comfortable and more amenable to their family’s needs, there are other reasons why they’re opting for home improvement over a newer home and its accompanying mortgage:

1.????? Higher mortgage rates: It’s no secret to anyone who’s looked at the housing market that mortgage rates are much higher than they’ve been in years. After reaching a decade-long high of 5% in 2022, they climbed even more to nearly 7% in early 2024. While rates are expected to decline in the near term, they remain higher compared to rates seen in prior years.

2.????? Higher housing prices: In addition to increased mortgage rates, housing prices are also high. They are no longer accelerating at the rates seen in 2022 and 2023, but current prices still remain out of reach for many buyers.

3.????? Shortage of homes: One key reason impacting new home prices? Inventory, or lack thereof. Rising costs of home-building materials, an increase in investors buying single-family homes for rental units and fewer people putting their homes on the market mean there are too few homes to buy.

Homeowners are also embracing the hybrid work model resulting in a surge in home-office remodeling efforts. Because more people are working from home, they want upgraded electrical systems and quieter spaces to work.

As a result of the market and a change in how we work, updating the home has become a commercial success for those businesses in the home improvement industry.

Answering Resilience with Entrepreneurship

In answer to the American homeowner’s resiliency in the face of the challenges of the housing market, businesses in the home and property services industries are booming.

When employees were sent home to work during the COVID-19 pandemic, plumbing, HVAC and electric companies were the first service companies many people called. Since people were spending increased amounts time at home, they needed to fix and upgrade their home comfort systems and residential service companies became essential to the changes homeowners needed.

Since that time, this has translated into other home improvement ventures that focus more on creating the right space than simply upgrading creature comforts.

High interest rates and little buy-sell activity in the housing market didn’t slow homeowners. Instead of trading up, they are investing in their homes. From lawn care to outdoor lighting and from deck spaces to improved roofing, the brands that make up Empower Brands have benefited from this resurgence of remodeling.

This year alone, six of our brands made Entrepreneur’s prestigious Franchise 500 list. Koala Insulation, Superior Fence amp; Rail, Outdoor Lighting Perspectives, JAN-PRO, Conserva Irrigation and Archadeck Outdoor Living showed their ability to innovate, grow and lead within their respective categories.

And we don’t expect a slow down any time soon. LIRA agrees. The home service and residential improvement markets are recession resistant, even during the worst of times.

If you are tired of the rat race of corporate life and are considering a move to entrepreneurship, take a look at the brands in the residential services industry. Empower Brands would love to work with you in guiding you toward achieving the dream of business ownership. For more information, call us at (804) 353-6999 or contact us online.