Is the remodeling industry growing? Yes.
Should the total market size and growth rate of the industry mean anything to you?
Not really.
What does matter: 98% of remodeling businesses make less than $3M a year in revenue. And you need to decide which type you want to be, because they each operate in fundamentally different ways.
You can see at a glance categorizing the industry based on these annual revenues makes for a nice normal distribution curve. Each category is discussed in more detail below.
How long does it take to reach these revenue milestones?
First of all, let's not get ahead of ourselves.
67% make it past 3 years
33% make it past 10 years
20% make it past 20 years
Skim through each remodeler type on the following pages to see the answer depends on your type of work you pursue. Some may get to milestones faster than others, or not at all.
But generally speaking:
Remodel | Annual |
Year 1 | $50,000–$150,000 |
Year 2 | $100,000–$300,000 |
Year 3 | $150,000–$400,000 |
Year 5 | $250,000–$800,000 |
Year 10 | $500,000–$1,500,000 |
Year 20 | $1,000,000–$2,000,000+ |
Less than $150K/Year Revenue
This is usually a solo operator with maybe one helper. They often do all the physical work and office admin.
Jobs per year: 15–40
Types of jobs: Handyman services, painting, basic flooring, small repairs, minor remodels (bathroom refresh, simple kitchen updates).
Job size: $500–$2,500, rarely over $10,000.
Leads: Most customers are from local neighborhoods by word of mouth or limited local advertising.
Income: Typically $20,000 to $40,000; up to ~$75,000
Overhead: ~15-25%
Net profit: ~1-3% (most make no profit at all)
PRO Tip: These businesses almost always undercharge. The bare minimum markup on job costs (material & labor) should be 1.5.
$150K to $500K
Remodeling Revenue
Can be a solo operator that still does physical work but relies heavily on subcontractors and/or a small team.
The owner may split time between job sites, sales, and basic business admin, and likely invests in better equipment and some branding.
Jobs per year: ~20-50
Types of jobs: Kitchen and bathroom remodels, flooring, siding, roofing, decks, and minor additions.
Job size: $5,000-$15,000, but also mixing in larger kitchen, bathroom, and deck projects ($50,000+).
Leads: Referral heavy, also repeat business from past customers. They have a growing online presence and limited local advertising.
Income: ~$40,000 to $70,000 + net profit
Overhead: ~25-30%
Net profit: ~3-5% (many make no profit at all)
PRO Tip: At this point you must have systems in place to consistently achieve 8+% net profit.
$500K to $1.5M
Remodeling Revenue
This is an established local or regional business that may have a full time crew of a few employees or heavily dependent on stable subcontractor relationships.
The owner does not perform physical work and focuses more on management, client acquisition. At this point they're typically supported by an office admin, and a job superintendent (4-10 employee operation).
Jobs per year: 25-60 (depending on project size)
Types of jobs: High-end kitchens and bathrooms, large decks or porches, multi-room renovations, and full-room additions.
Job size: $20,000–$50,000, but likely takes on $100,000+ projects.
Leads: Mix of referrals, strong online reviews, company website, paid digital ads (Google, Facebook, Instagram), and consistent presence in local or regional directories.
Income: $70,000 to $120,000 + net profit
Overhead: ~25-30%
Net profit: ~5-7% (some make no profit at all)
PRO Tip: The ideal owner responsibilities at this size is sales AND estimating.
More than $1.5M
Remodeling Revenue
These are mature, well-structured companies including multiple project managers, field crews, salespeople, and full-time administrative/marketing staff; subcontractors are heavily utilized for large or specialized jobs.
Jobs per year: 25-60 (depending on project size)
Types of jobs: Whole-house remodels, large additions, significant custom projects, and light commercial jobs.
Job size: Frequently $50,000+, with leading firms averaging $100,000–$200,000 per job, or even higher for specialty/niche markets.
Leads: Repeat big-ticket clients and strong local reputation are major drivers; Established branding brings a substantial share of leads through digital marketing, organic search, and highly visible media (TV, radio, targeted web ads).
These companies also get business from real estate agencies, architects, developers, and relationship-driven commercial or institutional contracts.
Income: $120,000-$250,000 + large % of net profit
Overhead: ~35-40%
Net profit: ~7-10%+
Before you can take the next step in your business, you have to know your minimum price:
