Throughout 2024, the home services industry has demonstrated remarkable resilience despite economic uncertainties, rising material costs, and inflation. This resilience underscores the critical role of trades in the U.S. economy. By analyzing data from the Bureau of Labor Statistics and surveying over 400 professionals in the home services sector, we identified four key trends shaping the industry as we move into 2025
Trend #1 – Confidence in 2025 Growth
As we approach the end of the year, optimism about growth remains high among home service professionals. 77% of surveyed professionals expect their businesses to grow next year, with 40% anticipating growth exceeding 10%. This confidence is driven by the essential nature of home services. Homes are the largest assets for most people, and trades professionals provide critical services that homeowners prioritize, even during tough times. For example, urgent issues like leaking pipes or broken HVAC systems cannot be delayed
Optimism and Growth in the Home Services Industry
“The Bureau of Labor Statistics projects a 9% growth in HVAC technician positions through 2033, significantly higher than the average growth rate for all occupations. This translates to approximately 42,500 new HVAC jobs annually. Similarly, employment for electricians is expected to increase by 11% through 2033, with about 80,200 job openings each year. Plumbers are also in demand, with a projected 6% growth and 43,300 job openings annually.
The home services industry is well-positioned for continued growth, with essential services remaining a top priority for homeowners. 86% of surveyed professionals believe the demand for skilled labor in the trades will increase over the next five years.”
r Shortage Continues, Yet Trades Offer a Promising Future
“The shortage of skilled labor remains a significant challenge. 60% of surveyed professionals report that labor shortages have impacted their ability to complete jobs on time and meet customer demand. The demand for skilled workers, particularly in plumbing, electrical, and HVAC sectors, far exceeds supply; this leads to project delays and additional strain on businesses.
One major obstacle is the lack of qualified candidates. 86% of surveyed professionals cite this as their biggest hiring challenge. Despite this, the trades offer long-term job security, especially as older generations retire and create openings in the workforce.
Electrical, plumbing, and HVAC services provide some of the most secure employment opportunities with competitive wages. For instance, in 2023, electricians earned an average annual wage of $67,810. HVAC professionals in states like Alaska and Massachusetts earned over $72,000 annually. The top 10% of plumbing professionals earned more than $103,140 last year.
For many considering a career in the trades versus attending college, the salary potential and job security of the trades are increasingly attractive. The high cost of college and associated debt further enhance the appeal of trade careers.”
Trend #3 – Trade School and Apprenticeships as Pathways Forward
“Starting a career in home services requires more than basic training; it demands hands-on education and mentorship. 80% of surveyed professionals believe that increased mentorship, education, and apprenticeship opportunities are essential to addressing the skilled labor shortage.
Trade schools provide practical skills and experience for entry-level roles. Programs like the Trade Academy Scholarship, supported by Housecall Pro and other sponsors, have seen a 215% increase in applicants since 2021, highlighting the growing appeal of trade careers.
The demand for vocational training is also rising. The National Student Clearinghouse Research Center reports a 17.6% increase in students enrolled in vocational-focused community colleges from 2023 to 2024, emphasizing the importance of alternative career paths in building a skilled workforce.”
Trend #4 – Continuous Learning and AI Integration
Education in the trades is a continuous journey. Home service professionals are increasingly adopting advanced tools like AI to drive revenue growth and improve efficiency. In the past year, 42% of surveyed professionals have used AI tools, with 25% noting that AI has positively impacted their revenue and job numbers.
AI is being integrated into various aspects of the home services industry, from answering phones after hours to summarizing complex checklists into homeowner-friendly language. Automation helps professionals offload manual tasks, allowing them to focus on customer service and business growth.
Despite concerns about job displacement due to AI, 44% of surveyed professionals are confident that technological advances will enhance jobs in the trades. The skilled trades remain “AI-proof,” as hands-on work like HVAC replacements and emergency plumbing require human problem-solving abilities.
Looking Ahead: Success in 2025 and Beyond
These trends highlight the evolving nature of the home services industry, incorporating new technologies and expanding its reach to the next generation. Despite challenges like labor shortages, the industry continues to adapt and grow, reaffirming its essential role in supporting local communities and the broader economy.
In summary, the home services industry is thriving, with innovative solutions, a growing workforce, and steady demand positioning it for continued success in 2025 and beyond.
