Home Improvement Retail Industry: Pros and Cons

The home improvement retail industry is undergoing a major transformation, and opportunity is knocking louder than ever before. If you’re an investor considering entering this thriving market, you’re not alone. The sector has seen explosive growth over the past several years, driven by shifting consumer behavior, increased homeownership, and a heightened focus on living spaces.

But is it the right time to invest? Let’s explore the pros and cons of the home improvement retail industry, share key insights from a recent home improvement retail industry analysis, and explain why ProSource Wholesale may be the most strategic and lucrative entry point into this expanding market.

Why Has the Home Improvement Sector Grown So Much?

The pandemic radically changed how people view and use their homes. With more time spent indoors, homeowners began investing heavily in their spaces, turning spare rooms into home offices, upgrading kitchens, and creating more functional outdoor living areas. According to Harvard’s Joint Center for Housing Studies, U.S. homeowners spent over $472 billion on home improvements in 2022, up from $394 billion in 2020.

Three primary forces are fueling this growth:

• Aging housing stock: Many U.S. homes are over 30 years old and require ongoing updates.
• Remote work: The shift to hybrid or remote work models has inspired long-term changes in home functionality.
• Increased property values: Rising equity has empowered homeowners to reinvest in upgrades.

This surge has positioned the home improvement retail market as one of the most promising and resilient segments in the retail sector.

One (very big) Pro for Entering the Home Improvement Retail Industry: Strong Market Demand for Home Renovations

Even as inflation pressures consumer spending, homeowners continue to prioritize renovations. Home improvement retail industry trends show steady year-over-year growth, with projections estimating the market will reach $558.3 billion by 2027.

And unlike luxury travel or non-essential goods, home renovations are often seen as necessary, particularly when tied to efficiency or maintenance.

One Glaring Con to Home Improvement Businesses (and How to Overcome It)

Let’s face it: These are uncertain economic times. With the threat of supply chain disruptions and the potential impact that additional tariffs may have, the cost of materials for home renovation and home building projects are already being impacted.

Even before the most recent economic news, prices for building supplies, such as lumber, have been on the rise.

While smaller businesses will likely feel a greater proportion of impact, well-established franchises like ProSource leverage national buying power to help mitigate these impacts.

Is It Still a Good Time to Enter the Home Improvement Retail Market?

Absolutely. Trends are holding strong, with an estimated market value of more than $1.3 trillion through 2034:

• Millennials are now the largest group of homebuyers and are more likely to renovate than previous generations.
• Baby Boomers are aging in place and upgrading their homes for accessibility and efficiency.
• Eco-conscious consumers are driving demand for energy-efficient solutions.

The home improvement retail industry trends point to robust growth across product categories including flooring, cabinetry, lighting, and smart home systems.

Why ProSource Wholesale Is the Best Opportunity in The Home Improvement Sector

ProSource Wholesale is uniquely positioned within the home improvement retail market to serve both trade professionals and homeowners. With 145+ showrooms across North America and a 30-year track record, we offer a winning combination of low-overhead operations, national buying power, and exclusive access for trade pros.

Here’s what makes our franchise opportunity stand out:

• No Retail Hours – Operate on business hours, not retail hours.
• Recurring Revenue Model – Build long-term relationships with trade professionals who return project after project.
• High-Growth Market Segments – Flooring, kitchen and bath remodels are consistently among the top renovation priorities.

Ready to Join a Growing Industry?

The home improvement retail industry is not just thriving; it’s evolving. Now is the perfect time to invest in a franchise that’s backed by decades of success, proven systems, and a unique value proposition in a booming market.

Interested in learning more? Fill out and submit our franchise form today to discover how you can become a part of the ProSource Wholesale network and tap into the future of home improvement retail.