Love of Fixer Uppers in St Louis Means Lots of Opportunity for the Home Improvement Industry
Renovation television shows give Americans plenty of inspiration for their own home improvement adventures, and homeowners are jumping into DIY projects. The business expanded 6.5% from 2016 to 2017, nearly twice as fast as the rest of the retail sector, and throughout 2017, the home improvement market generated 2.2% of the country's economic activity.
St. Louis residents are just as enthusiastic about rehabilitating properties and gaining profit as the rest of the U.S. Established and new businesses can find a variety of ways to leverage this interest in fixing-uppers and turn them into a successful enterprise.
Why St. Louis is Great for Fixer-Uppers
One of the main reasons Americans are choosing renovator's delights over new homes is the country's aging housing stock. Around 40% of houses in the country are over 50 years old, and there have been few homes built in most American cities over the last decade. For most homeowners, an older home is the only option. These aged homes involve more maintenance, and many require a complete renovation to meet the needs of modern technology.
Homeowners in St. Louis are also looking at fixer-uppers, such as the Victorian-era houses in the quiet neighborhood of Shaw. However, many are run down. While this means it can be easy to find a great bargain, some homes have structural issues that make them less attractive.
Passed in 2017, Prop NS aims to fix this by giving the Land Revitalization Authority $6 million each year to do structural repairs, mainly to foundations and roofs, on the city's vacant homes. These can then be sold to people looking for a renovation project, which in turn revitalizes the whole neighborhood. The LRA has more than 3,000 homes on its books and sells properties for a standard, low fee.
Traditional Home Improvement Business Opportunities
Most people with fixer-uppers want professionals to get some of the work accomplished. In rooms, such as kitchens and bathrooms, homeowners want a beautifully crafted finish that comes only from experienced tradespeople. As these are rooms that often need complex updating, companies that focus on these areas are expanding their businesses.
Many millennial home buyers choose an older home and can't afford to do all the renovations at once. This growing customer base is more likely to break up a large project into smaller jobs, such as one room every year. Designers, painters and other renovation professionals can find consistent work in this sector. In St. Louis, the demand for tradespeople has seen hourly wages for carpenters and construction laborers rise above the national average.
Opportunities from New Technologies
Businesses seeking to fill market gaps have opportunities afforded to them by new technologies. Consumers are wanting knowledge and information products, such as books or courses, can be big money makers. Business owners who only provide manual services may also want to focus on conceptual delivery, as 74% of customers do comparative research before making a purchase. Videos and reviews can help businesses build trust, add value and provide product transparency.
Smart homes are also coming up in the market. More than half of consumers want a professional to install their smart home products, but there isn't a go-to expert, so they choose a security company or electrician instead. Pivoting an existing business into smart home solutions could see an increasing growth in this market, especially as the products become more common and consumers become less comfortable doing their own troubleshooting.
It's likely that the St. Louis fixer-upper market will continue to grow, and businesses that assist homeowners with their renovations have many opportunities to be innovative. Technology offers new business opportunities, but the expertise of tradespeople will continue to be necessary in the market. Contact LINK St. Louis today at 314-487-0005 or email infostl@linkbusiness.com if you are interested in home improvement opportunities.