The United States is the land of renovations. The overall expenditure of the country on home improvement alone has reached unprecedented levels. It’s estimated that the country’s spending in 2020 reached over $400 billion, which is expected to reach $600 billion by 2025. That’s a huge market, but one that’s also very competitive.
There are over three million construction firms in the country. These firms have a share of this market. So, how do you ensure that your firm gets a good piece of the pie?
The answer is by taking on suitable projects. Not all home improvement projects are created equal. Some are more challenging than others but offer a higher potential return on investment. Here are the five best projects you can take on as a home contractor.
Custom Luxury Pools
Swimming pool construction has skyrocketed during the pandemic. There are various reasons for this. The first reason is that people spend more time at home and want to create a luxurious backyard oasis. It increases the home value considerably, making it a good investment for everybody. The second reason is that pools have become a status symbol.
Custom luxury pools are the perfect project for construction firms that want to get a piece of the pie. Luxury pools require a higher investment but offer a much higher potential return. They also have a longer construction timeline so you can take on other projects simultaneously. Being part of the custom pool builders market is a great way to profit from your hard work. It’s also a great way to utilize your time, especially if you don’t have any other projects.
Whole-House Renovations
Whole-house renovations are another excellent option for construction firms. These projects can be quite profitable because they usually involve gutting the entire house and starting from scratch.
While whole-house renovations can be very profitable, they’re also very challenging. They require a lot of coordination and planning. You’ll need to work with multiple subcontractors to get the job done. But if you’re up for the challenge, whole-house renovations can be very rewarding. The average cost of a whole-house renovation is around $40,000. So you can expect to get about 30% to 40% from that.
High-End Home Additions
Americans are now earning more than ever. Naturally, this means that they’re also spending more. And one of the things they’re spending their money on is high-end home additions.
High-end home additions are an excellent option for construction firms that want to get a piece of the luxury market. These projects can be very profitable if done correctly. They usually involve adding an extension to the house or building a new wing entirely.
The average cost of high-end home addition is around $100,000. But if you do it right, you can expect a 50% or even more return. That’s a huge potential return on investment that you can’t afford to miss out on.
Garage Conversions
American homes often have garages, but what’s interesting about these garages is that homeowners don’t know what to do with them. Most of them are storage spaces for things the homeowner doesn’t need.
This is where garage conversions come in. Garage conversions are a great way to add value to a home. They usually involve converting the garage into an extra room or living space. You can do various projects in these garages. One of the most prevalent is to convert it into a home gym.
You can earn a lot from home gym conversions, but this can depend highly on the project. For example, converting a garage into a home gym doesn’t take much. You can usually do it for around $5,000 to $10,000, but you can do it alongside many of your projects.
Other popular options include converting it into a home office or a playroom for children.
Loft Conversions
Loft conversions are similar to garage conversions but with one key difference: they’re usually done on the house’s second floor instead of the ground floor.
Loft conversions are a great way to increase the value of a home. They usually involve adding an extra room or living space. You can do various projects in these lofts. One of the most popular is to convert it into a home office.
You can earn a lot from loft conversions, but this can depend highly on the project. It doesn’t take much to convert a loft into a home office.
Being a contractor can be challenging, but offering all sorts of services can attract more clients. These are just some of the best projects you can do as a home contractor to increase your profits.
