The home improvement industry offers a wide range of opportunities for aspiring business owners, from painting and handyman services to flooring, home organization, and full-scale remodeling. As homeowners continue to invest in their properties, entrepreneurs may find opportunities to build businesses that help meet these evolving needs.
Understanding the home improvement market is the first step for anyone considering a franchise in this sector. Market size, homeowner spending, demographic shifts, and emerging service needs help prospective franchisees identify areas worth exploring.
How Big Is the Home Improvement Market?
The global home improvement market represents a substantial industry spanning renovation products, repairs, maintenance, and residential upgrades.
According to Market Research Future, the global home improvement market was valued at an estimated $991.95 billion in 2025. The research firm projects that the market will reach approximately $1.76 trillion by 2035, representing a compound annual growth rate (CAGR) of 5.9% from 2025 through 2035.
These figures reflect a broad global market that includes products and other activities beyond the services offered by any single franchise category. Still, the forecast illustrates the scale of consumer spending associated with improving and maintaining residential properties.
The U.S. remodeling market also represents a significant source of demand. The National Association of Home Builders (NAHB) estimates that homeowners spent $670 billion on remodeling projects in 2024. Approximately 20 million households, or nearly one-quarter of owner-occupied homes, undertook improvements ranging from small upgrades to major renovations.
For prospective franchise owners, these figures provide useful context. Home improvement encompasses numerous services, with opportunities in specialized niches as well as broader renovation and maintenance businesses.
Key Home Improvement Market Statistics and Facts
Recent research offers a closer look at homeowner behavior and the potential demand for improvement services.
- 54% of U.S. homeowners renovated their homes in 2025. The 2026 U.S. Houzz & Home Study found that median renovation spending remained at $20,000.
- High-end renovation spending remains substantial. According to the same Houzz study, the top 10% of renovation projects reached $150,000 or more in 2025.
- About 50% of surveyed homeowners planned renovations in 2026. Their median planned renovation spending was $15,000, down from $20,000 in 2025, suggesting that some consumers are taking a more cautious approach to upcoming projects.
- Families and older homeowners contribute to remodeling demand. NAHB analysis found that homeowners ages 35–44 and 55–64 reported some of the highest remodeling expenditures in 2024, reflecting needs associated with growing families and preparing to age in place.
These statistics highlight both the scale of the market and the importance of understanding its different customer segments. They also underscore why prospective franchisees should examine local demand, competition, and the specific services offered by a franchise instead of relying on national market projections alone.
Home Improvement Industry Trends to Watch
Several consumer priorities are shaping the types of services homeowners may seek. For prospective franchise owners, these trends help identify business categories worth researching.
#1 – Aging in Place and Accessibility Improvements
As homeowners plan to remain in their homes longer, some may need to modify their properties to accommodate changing mobility and accessibility requirements. Potential projects include bathroom modifications, safer entryways, improved lighting, and other changes that make daily activities easier.
The opportunity extends beyond major renovations. Painting, home maintenance, landscaping, and other services can also help homeowners maintain their properties as their needs change.
#2 – Remodeling Instead of Moving
Housing costs, mortgage rates, and the availability of homes for sale influence whether homeowners move or improve their current properties. When moving is less attractive or practical, some homeowners will choose to update their existing homes instead.
NAHB notes that elevated mortgage rates and limited for-sale inventory have encouraged some homeowners to invest in properties they already own. Its 2026 remodeling analysis also identifies demand for additions, kitchen upgrades, and other improvements that help households adapt their homes to changing needs.
Areas for prospective franchisees to explore include: remodeling, flooring, painting, handyman services, and home organization.
#3 – Energy Efficiency and Sustainable Home Upgrades
Energy efficiency is another trend influencing home improvement decisions. Homeowners may consider insulation, window and door replacements, weatherization, efficient lighting, and other upgrades intended to improve a property’s performance.
The Market Research Future home improvement report identifies sustainability and energy-efficient solutions among the trends shaping the broader industry.
#4 – Smart Home Technology and Modernization
Smart thermostats, security systems, automated lighting, and other connected devices are changing how homeowners interact with their living spaces. Some homeowners may need professional help selecting, installing, or integrating these technologies.
Market Research Future also identifies digital innovation and smart home technology as developments influencing the home improvement market.
#5 – Demand for Professional Home Services
Not every homeowner wants to complete repairs and improvements independently. Larger projects, limited time, specialized tools, and the need for experienced service providers can lead homeowners to hire professionals.
The range of potential services is broad, including painting, handyman work, flooring installation, landscaping, home organization, and remodeling. Some businesses focus on one specialized service, while others coordinate multiple trades or manage larger projects.
Types of Home Improvement Franchise Opportunities
One advantage of the home improvement sector is the variety of business models available. Prospective franchisees should investigate different categories based on their interests, experience, investment capacity, and preferred level of operational involvement.
Examples include:
- Painting franchises: Interior and exterior painting for residential properties.
- Handyman franchises: General repairs, installations, and smaller home maintenance projects.
- Flooring franchises: Flooring sales, replacement, installation, or related services.
- Home organization franchises: Closet systems, garage storage, and other organizational solutions.
- Landscaping and outdoor service franchises: Yard maintenance, outdoor improvements, and related property services.
- Remodeling franchises: Kitchen and bathroom renovations, home upgrades, and larger improvement projects.
- Specialty home service franchises: Businesses focused on windows, doors, insulation, accessibility modifications, or other specialized services.
These categories have different operating requirements, customer acquisition strategies, staffing needs, and startup costs. A business that requires skilled technicians, installation crews, or specialized equipment may have a very different operating model from a franchise that primarily coordinates projects or provides recurring maintenance.
What to Consider Before Buying a Home Improvement Franchise
Market demand is only one part of the franchise evaluation process. The right opportunity should also align with your financial situation, abilities, and long-term business goals.
Assess Your Skills and Interests
You don’t necessarily need to be an experienced contractor to own a home improvement franchise. Depending on the business model, the owner may focus on managing employees, marketing services, building customer relationships, scheduling jobs, and overseeing operations.
Consider whether your strengths are best suited to hands-on work, sales, team management, project coordination, or running a service business.
Understand the Investment and Operating Costs
Franchise investment requirements vary by brand and service category. Beyond the initial franchise fee, you may need to budget for equipment, vehicles, insurance, staffing, marketing, working capital, and ongoing royalty or advertising fees.
Review the franchisor’s Franchise Disclosure Document (FDD), paying particular attention to the initial investment estimates and any financial performance representations included in Item 19. Speak with existing franchise owners and qualified financial professionals to better understand the costs and operating realities of the business.
Research Licensing and Insurance Requirements
Home improvement businesses may need general liability insurance, commercial vehicle coverage, workers’ compensation insurance, or other protection depending on their operations and location.
Before investing, verify the requirements that apply to your intended territory and service offerings. A franchisor can provide information about its operating model, but you should independently confirm local legal and regulatory obligations with the appropriate authorities and qualified professionals.
Evaluate the Territory and Competition
National statistics provide a starting point, but local conditions will have a direct influence on a franchise’s potential customer base.
Research the age and condition of homes in your target territory, household demographics, competing providers, typical service prices, and local demand for the specific work you’ll offer. Consider whether customers are likely to need services once or repeatedly and how the business plans to attract and retain them.
Also evaluate the franchisor’s support, including initial training, marketing resources, operating systems, and ongoing assistance.
Ready to Explore Home Improvement Franchise Opportunities?
You don’t have to navigate the franchise research process alone. A FranNet franchise consultant can help you clarify your business ownership goals, understand your investment parameters, and choose a franchise opportunity that aligns with your skills, interests, and lifestyle.
Schedule a free consultation to discuss your goals with a franchise consultant. There’s no cost or obligation to explore your options. Take the first step toward finding out whether a home improvement franchise or different franchise opportunity is the right fit for you.