By Lauren Setar
Since the recession, many consumers are looking to increase the value of their homes and reinvest in their properties, driving up demand in a variety of industries in the home improvement sector. Notably, franchises in this sector fared slightly better than their non-franchised counterparts during the downturn, primarily due to increased brand recognition.
Thus, as the overall economy improves, demand for franchises in this sector is expected to increase significantly. Indeed, home sales, a primary driver for these industries, are expected to rebound as families take advantage of the lowest prices in several years because the Federal Reserve is keeping interest rates low for the time being.
In the next five years, the volume of existing home sales is expected to increase at an average annual rate of 6.9 percent to about 7.2 million; comparatively, existing home sales grew an annualized 4.6 percent to reach 5.2 million in the five years to 2013.
As a result, franchises in the home improvement sector are well-positioned to capitalize on the recovering economy and obtain a strong foothold for future growth over the next five years.
Many individuals, couples and families turn to real estate agencies to show homes to prospective buyers, negotiate transactions on their behalf and represent them in real estate transactions. Pent-up demand for housing, built up largely by young adults continuing to live at home, is expected to spark a revival in housing activity due to record-low housing prices and mortgage rates.