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The crash of the housing market could serve as an indicator that any type of service related to home (decorating or construction) would’ve received a strong financial hit. To the surprise of many, a recent report by Ibis World showed the exact opposite: the interior design industry has had a strong increase in it revenues for the past five years.
The years leading up to 2017 –when the most recent report was published– demonstrate a separation from the hardships the housing market crash generated on the overall real estate business. The residential construction market created a void, which many consumers decided to change with their own hands.
On this occasion, the report shows an increase in home renovation activities, mainly because of the growth of disposable income among main market contributors. This exhibits a stark contrast to the situation the industry had to go through on the period prior to 2011, when numbers started to go on a positive curve.
By 2012, with the commercial construction boom that hit many cities in the US, the industry was living its best moment so far. What was considered a dormant endeavor in years before, became a strong and reliable business that took advantage of the presence of accessible options for home decoration that were virtually widespread for anyone.
With the advent of highly publicized home renovation shows on cable TV, many saw the industry as an opportunity to generate a steady flow of income. And this is because most of the people involved in the business were considered to deal with budgets beyond anyone’s imagination. But, as the report states, the increase in the access to materials like decorating and kitchen supplies, allowed for the creation of a market that not many locations in the US had the opportunity to experience.
As with many industries, non formal ways of business promotion were hurting the development of the home decoration/renovation sector. Some of the key factors for its recent success include: reliable project management skills, which allow for the efficient use of budget and human resource; access to specific markets, a key factor that helped create a solid base of customers; and good reputation, for this business has been based on word-of-mouth references.
Industry performance has also been affected by the real estate market– the development of suburban areas around the country has called for the creation and expansion of new professionals that would be available to serve these up-and-coming communities.