How significant is the home services market Growth? Roofing alone could range from $30 billion to $150 billion, depending on the source, and HVAC is estimated at around $130 billion. However, the overall home services market provides clearer data due to extensive research.
: Home Services Market Growth Analysis
Table of Contents
- Home Services Market Size
- Challenges in the Home Services Market
- Home Services Market Statistics
- Future Trends and Forecast
Home Services Market Size
The Total Addressable Market (TAM) for Home Services reached a new high of $657 billion, though the growth rate slowed from 18% last year to 10% this year.
Challenges in the Home Services Market
“In April, the US construction industry had approximately 440,000 job openings, according to an analysis by Associated Builders and Contractors 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. The Bipartisan Infrastructure Law will likely add strain to an already tight labor market,” according to ServiceTitan.
Home Services Market Statistics
- The total addressable market for home services is $657.4 billion.
- The home improvement market is now $475 billion, growing 26% from 2022 to 2024.
- The total home service market for single-family houses is $500.2 billion.
- The market size in total project volume is 665.6 million projects completed annually, with year-over-year increases in both improvement and emergency projects.
- Home equity gains of $7.6 trillion over the past two years could fund 12 years of consumer spending at the 2022 level.
- The total housing stock is rising to 143 million units, including 93.5 million single-family homes, which remain the most popular living arrangement in America. The average age of the housing stock is now 47 years.
- There are 6.1 million home service professionals working for approximately 2.5 million businesses.
- The ratio of the prior year’s home equity to the current market size is 38:1, a 6% increase from 2021, 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 versus moving, as the total cost of buying a new home has nearly doubled since 2020.
- The average American is now 39 years old, and the next decade will see Millennials forming families and aging into their 40s, while Boomers enter their 80s, many opting to age in place.
Future Trends and Forecast
What does this mean for home services business owners? These numbers are more than just impressive statistics; they tell a story of evolving consumer patterns, economic policies, and the dynamics of supply and demand. Where is the home services market headed next? Let’s explore.
Dare to Age-in-Place: A Silent Revolution Millennials, once dreaming of city penthouses, are now eyeing suburban homes with DIY projects. Boomers, preferring to age in place, are boosting the home modification market with ramps, elevators, and smart homes. Adaptation is the new renovation!
Equity Raincheck: Spend Now or Save for Later? Massive home equity gains present homeowners with a choice: remodel now or save for later? With rising interest rates making new home purchases less appealing, many are choosing to transform their current homes into dream spaces.
Buckle Up for a Wild Ride Home services market statistics reflect the changing dynamics of the American dream. From tech-savvy smart homes to accessible spaces for seniors, the market caters to all. Whether you’re a business, homeowner, or someone finding their place in this market—get ready for an exciting journey.
