The home renovation niche is of great interest to homeowners eyeing their next makeover project, businesses seeking reliable contractors, and skilled tradespeople willing to expand their client base. According to CBS News, it became a 567-billion industry in 2023, illustrating a 15% step-up compared to 2021. It seems the COVID-19 pandemic has triggered a shift in homeowners’ interest and propelled the home improvement market to greater heights. But can it maintain its growth trajectory further? That’s a big question.
We asked MyHomeQuote CEO Igor Skobletskii to share his expert opinion about the forthcoming trends in the home renovation industry. After all, this contractor-matching platform has revolutionized how homeowners, businesses, and contractors connect. This interview offers an inspiring glimpse into the heart and mind behind MHQ. Whether you are tech-savvy, always on the lookout for the next big thing in the digital world, or simply interested in the stories of innovative leaders, tune in to this thought-provoking talk and get inspired by the wealth of information and insights.
Do You Expect a Decline in Home Improvement Activity?
In the tumultuous world of market fluctuations, industries constantly pivot to adapt to changes. One slight fluctuation in the economic sphere can predicate a ripple effect across numerous industries, including the home renovation sector. Researchers from the Joint Center for Housing Centers of Harvard University (JCHS) suggest that we might see a slight downturn in the industry, typically around 3%, at the outset of 2024. While this might ordinarily warrant concern, I firmly believe it will not steer prevailing trends off course. And it is not about my optimistic mindset. The home renovation niche does stand out with resiliency and buoyancy even in the face of economic uncertainty.
Whether in economic boom or recession periods, people will always need to maintain, repair, and improve their homes. These are needs that exist independently of economic circumstances. There is a timeless need for housing and a continuous desire for improved living spaces.
As Forbes Home Advisory Board Member Derek Walczak said, “We are seeing a lot of homeowners that have owned their home for longer periods of time and now have built up the equity or savings to invest in renovations.”
Hence, despite the 3% economic dip, the home renovation industry is poised for sustained growth. Its trends are shaped by various elements, from material advancements, consumer needs and preferences, and regulatory changes to market dynamics, extending beyond the potential short-term financial drops.
Demographic factors are profoundly influential, too. A Houzz survey last year discovered that the average age of a US residential property is 39 years, give or take. Aging homes, coupled with the trend of aging in place, have led to a surge in demand for modifications that make homes safer and more accessible for older adults. This dynamic is unlikely to be affected by a recession, meaning homeowners will keep investing in renovations or repairs.
What Are the Main Traffic Sources for Lead Conversions at MyHomeQuote?
We pull out all the stops to make the MyHomeQuote platform the #1 go-to for businesses interested in expanding their clientele and homeowners searching for credible contractors. The latter can gain valuable insights here by examining our always up-to-date, expert-written content like blog posts, articles, and more. With the shift towards a more digital landscape for businesses, MHQ embraces the significant sources of lead traffic that are making waves: Facebook, Google, and its subsidiary, YouTube, along with native traffic. These platforms remain superior in reaching potential leads in a more personal, relatable way. Let’s view them in more detail.
Facebook remains a key player in the home renovation industry as it makes for a portal for engagement and high-quality content creation. It offers robust targeting options, allowing for pinpointing potential customers based on various parameters, from demographic information to behaviors. We also exploit the savviness of the platform’s algorithms to maximize our reach and generate substantial lead traffic.
With its vast user base, Google is often the first port of call for homeowners searching for home renovation experts. YouTube, owned by Google, is another crucial source. As the most widely used video-sharing platform, YouTube provides a unique, personal, and engaging way to connect with homeowners, making them feel valued and understood.
Native traffic, a cornerstone of customer attraction, is driven by organic search. Through strategies like crafting hyper-niche copies combined with Search Engine Optimization (SEO), MyHomeQuote attracts more organic traffic. This signifies brand recognition, especially among those who’ve had previous experience with MHQ and are returning to use its services again or those who’ve heard about us from friends and family, instilling a sense of loyalty and trust.
What Verticals Will MyHomeQuote Pay Heed to in 2024?
All changes in the industry that we watch nowadays don’t occur in isolation but mirror broader socio-economic shifts. One significant trend currently dominating the niche is ‘green’ or sustainable remodeling. Fueled by increasing public awareness and concern for the environment and government incentives, contractors are encouraged to offer eco-friendly solutions. That’s why MHQ is about to pay more attention to the Solar vertical in 2024. Homeowners crave to reduce their carbon footprint while cutting energy bills, and we are here to match them with reliable specialists in solar paneling and installations.
Moreover, we’ll keep focusing on the traditional home renovation verticals – Gutter, Roofing, Windows, Bathroom, and HVAC. They form the backbone of the home renovation industry and invariably see a consistent level of demand. For instance, gutters and roofing solutions are crucial for protecting belongings from weather conditions and, thus, continue to be a priority for many homeowners. Investments in this sector remain steady as owners routinely require maintenance or upgrades. Plus, the growing demand for energy-efficient, eco-friendly, and smart systems in the HVAC sector echoes the industry’s shift towards sustainable living.
Final Thoughts
In the grand scheme, a mere 3% recession is a slight wave in the ocean of the home improvement industry’s vast potential. The sector evolves by leaps and bounds, providing consumers with the solutions they need to create comfortable, stylish, and environment-friendly living spaces. And it’s hard not to agree with Marine Sargsyan, Houzz staff economist, who states, “Renovation activity remains strong due to market fundamentals, including limited and aging housing stock, despite heightened product and material costs driven by supply chain disruptions.”
The remodeling industry will continue to thrive, bolstered by homeowners’ ever-present desire for aesthetically pleasing and functional homes. Therefore, the demand for and investment in home improvement and remodeling projects will persist regardless of economic conditions. The potential slight recession might slightly dampen the industry’s pace, but it is unlikely to disrupt or dissuade the prevailing and future trends. At MyHomeQuote, we stand ready to harness these opportunities and anticipate a dynamic future fueled by innovation and sustainability.
