Franchises Soar Along with Housing Market

As home values remain high - especially among those searching for a Florida home loan - the real estate market undergoes changes. When those prices make it difficult to sell one’s home, individuals are more likely focus efforts on their current property.

Enter one of the strongest and broadest recent trends: remodeling. The Joint Center for Housing Studies at Harvard reports that homeowners spent $149 billion in 2005 on renovations.

“People are investing in their houses,” says Steve Hockett of FranChoice, a business referral consultant. “And higher house prices have enabled them to do it.”

To meet the growing demand for all things home-related, such as remodeling, numerous enterprises have sprung up. Many are franchised. After all, who has time to do all the work required to maintain America’s growing homes? Americans are working longer hours, spending more time commuting and are more likely to have both spouses employed.

When owners look for help, it’s natural that they should turn increasingly to franchise businesses.

“Customers are more comfortable with a name they know,” says Hockett. The clout of multiple locations and ample advertising and promotional money heightens brand awareness for franchise owners.

Industry sources cite several other factors that have added to the boom in franchise businesses targeting homeowners.

“After 9/11, the home improvement industry soared,” says Tom Wood, president of Floor Coverings International, a franchise operation. “People started to focus inward more and as home prices climbed, they poured money from home improvement loans into remodeling.”

It’s also natural that high home prices would prod homeowners into plowing some of their equity back into home repair or improvement as a way of protecting or enhancing their investments.

And don’t discount all the media attention that all aspects of home design and improvement have been drawing. TV shows, such as “Extreme Makeover: Home Edition” and “Trading Spaces” has helped focus the nation’s attention on the home and created an atmosphere of lust for lush lifestyles.

“Home shows have been a great boon to housing remodelers,” says Jason Baldner, president of Kitchen Solvers, a franchise kitchen and bath remodeling company.

In conclusion, maybe you don’t need a new Florida home loan after all. Perhaps fixing up your current property will be enough to make it feel new.