How big is the home services market? Just roofing alone could be anywhere from $30Billion-$150Billion depending on who you ask, and HVAC alone has said to be around $130 Billion, but the data gets a little more clear when you look at the total home service market, as much more research has gone into it.
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How big is the home services market size?
The Total Addressable Market (TAM) of Home Services reached a new high of $657 billion, but the rate of growth slowed down from 18% last year to 10% this year.
What are some challenges facing the home services market?
“In April, the US construction industry had roughly 440,000 job openings according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey—the highest levels recorded since industry-level jobs data was first collected. And the Bipartisan Infrastructure Law taking effect will likely add strain to a tight labor market.” – According to ServiceTitan
Home Services Market Size Statistics:
- The total addressable market for home services is $657.4B.
- The home improvement market is now $475B and grew 26% in the past year. (2022 to 2023)
- The total home service market serving single family houses is $500.2B.
- The size of the market in total project volume is 665.6M projects completed annually, with year-over-year increases in both improvement projects and emergency projects.
- Home equity gains of 7.6trillion over the past 2 years could pay for 12years of consumer spending at the 2022 level.
- The total housing stock is continuing to rise to a total of 143 million housing units, included in that is 93.5 million single family homes, which remain Americans most popular way to live. The average age of the housing stock continues to rise, to an average of 47 years.
- The number of home service professionals is 6.1 million people working for approximately 2.5 million businesses.
- The ratio of the prior year’s home equity to the current market size is 38:1, an 6% increase from 2021, despite the larger TAM this year, reflecting the role of large home equity gains in fueling home service spending.
- Home equity gains coupled with rising interest rates will increase the competitive position of remodeling vs. moving, as the total cost of buying a new home has nearly doubled since 2020.
- The average American population now has an average age of 39, and the next decade will be marked by Millennials continuing to form families and age into their 40s while Boomers enter their 80s with many opting to age-in-place.
What does this all mean for you a home services business owner?
While these numbers are an impressive testament to the robust nature of the home services market, they aren’t just static digits on a dashboard. These figures tell a story—a narrative of evolving consumer patterns, shifting sands of economic policies, and the dance of supply and demand. But where’s the home services realm headed next? Let’s play fortune teller and gaze into our crystal ball.
Dare to Age-in-Place: A Silent Revolution
Remember those spicy millennials who once guzzled avocado toast and dreamt of city penthouses? Guess what? They’re setting their sights on suburban dreams, white picket fences, and DIY home projects. But here’s the twist: they’re not alone! The boomers, our classic rock jamming legends, are showing no signs of slowing down either. With a preference for aging-in-place, they’re boosting the home modification market. We’re talking ramps, elevators, and smart homes. The message is loud and clear: Adaptation is the new renovation!
Equity Raincheck: Spend Now or Save for Later?
The massive home equity gains have given homeowners a delightful conundrum. They’re like kids in a candy store—but with deeper pockets. 🍭💸 Dive into that remodeling project now, or squirrel away those gains for a rainy day? With rising interest rates making the idea of shifting to a new nest less appealing, we’re seeing a trend: homeowners are choosing to revamp their current spaces into dream dwellings.
Buckle Up for a Wild Ride
Home services market size statistics aren’t just figures; they’re a pulsating testament to the changing dynamics of the American dream. From the young couple wanting a tech-savvy smart home to our beloved grandma needing a safe and accessible space, home services are catering to all. So, whether you’re a business, a homeowner, or someone just trying to find their space in this bustling market—strap in.
Is This the Golden Age for Home Services Entrepreneurs?
Rise and Shine, HVAC and Roofing Rockstars
While the impressive stats of the home services market provide a thrilling overview, they’re especially revealing for the HVAC and roofing sectors. The age-old adage, “There’s gold in them hills,” has never felt truer.
With an aging housing stock, every scorching summer or unexpected downpour underscores the essential role of HVAC and roofing services. For those forward-thinkers in these trades, it’s not just about surviving; it’s about capitalizing on a booming demand.
Time for Private Equity to Pivot to Roofing?
But here’s a twist: for those in the private equity sphere, the landscape is equally intriguing. Observing HVAC companies merge and gain lucrative acquisitions has undoubtedly been a spectator sport. But what’s the next big move?
Roofing seems ripe for similar consolidation and growth, presenting an almost irresistible siren song for investors. Other underserved home services areas also beckon with promise. The challenge isn’t in identifying the potential – it’s acting on it before someone else does.
Strategize, Innovate, Dominate
In the end, the tides of the home services sector are shifting swiftly, and standing still is not an option.
Whether you’re a business owner looking to scale, innovate, or diversify, or an investor scouting for the next big splash in the home services pond, the message is clear: The market is vast, the potential astronomical, and the rewards? Well, they’re there for those bold enough to chase them. So, what’s your next move?