The home services industry is large and growing yearly. Home services include professional plumbers, HVAC technicians, electricians, carpenters, painters, landscapers, cleaners, and more. There are an estimated 6.1 million home services professionals in the US as of 2023. This number is expected to grow to 7.2 million by 2028. The exact figure of home service professionals is hard to pinpoint. What’s certain is market growth potential for entrepreneurs entering the home services field. Understanding the data about this industry requires looking at statistics and trends.
How Many Home Service Businesses?
There are about 2.5 million home service businesses in the United States. As households include more dual-income professionals and Americans enter retirement, home service businesses continue increasing. The market serves homeowners too busy or unable to perform maintenance and repairs.
This growth trend is consistent across many states:
How Many Home Service Businesses Are There Near Florida?
In Florida alone, there are over 100,000 home service businesses generating over $100 billion in revenue and employing over 1 million people in 2022.
How Many Home Service Businesses Are There Near Texas?
Texas doubles this number. There are over 200,000 home service businesses employing over 2 million people.
Consumer Spending In The Home Services Industry
The American dream of homeownership drives the home services market. However, homeowners and renters both use home services. According to the U.S. Census Bureau, consumer spending on home services in the United States was $506.9 billion in 2020.
Homes Service Market: A Competitive Landscape
Anytime a forecast predicts continued growth, markets shift. For business owners and entrepreneurs entering home services, follow the data. As the workforce expands, many businesses must rely on verified research and accurate data collection to stay ahead of new players and major disruptors.
Amazon home services is one example. Like in books, retail, groceries, and pharmaceuticals, the tech giant uses brand recognition to compete in home services. Corporate entities, apps connecting homeowners with providers, and future technology will change how homeowners find and hire contractors.
Every home service business’s goal is providing high-quality professional service. As the market expands, skilled business owners and operators earn their share.
Most in demand home services
Clearly, home services companies in the USA have growth opportunities. Some services expand faster than others. Labor statistics show the latest trends. Existing homes need care and homeowners are turning to professionals. Most in-demand home services include:
- Plumbing: Plumbing is always in high demand because systems are essential for health and comfort. A current home service industry trend is expansion into multiple services within a single brand. Plumbers branch out or acquire electrical or HVAC businesses. This creates faster market growth as a one-call solution for all essential services.
- Electrical: Licensed electricians are poised for strong market growth. As vehicle electrification, household appliance electrification, and renewable energy like solar demand rises, consumer spending requires EV charging addition and home electrical system adaptations. Smart homes are driven by devices powered by safe, secure electrical systems.
- HVAC: HVAC services are in high demand and driven by local demand. While unskilled services and home products have low barriers to entry, HVAC requires certification and the ability to respond quickly to homeowners. Local HVAC companies are both in demand and poised for strong growth.
- Carpentry: Repairing, remodeling, and building homes requires skilled carpenters. Carpentry services, including general construction and niche millwork, are in high demand across the industry.
- Flooring: Major brands compete to sell flooring, yet many homeowners get frustrated with fragmented buying. In home services, flooring is very high demand, especially for businesses that consult, design, and install.
- Pest control: Removal and prevention of home infestations remain a growing business. Like other services, owners and operators provide quick response and personal comfort when homeowners stress about pests.
- Other in demand home services include: Lawn care services, especially landscape architects and arborists, are in demand for busy families. House cleaning, home health businesses, and pet services continue rising.
Most Profitable Home Service Business
The home service market is extremely broad and findings vary on which area is most profitable. Some businesses rely on strong new home sales. Others like HVAC get impacted by weather conditions.
Home service professionals continue growing across almost every industry sector. Therefore, business owners should consider market growth as a sustainable revenue source. In simpler terms, the best home service business plan focuses on professional services matching your target market and skillset.
Home Service Business Ideas
With more than 6 million workers in home services, many have the ambition and skill to become business leaders. Several steps help you enter the home service market. These apply whether you’re new, an experienced professional starting a new venture, or a longtime owner expanding market share.
Home Services Business Model Home Service Business Plan
Home Services Business Model
The home services business model involves providing services to homeowners. To compete, consider services from basic repairs and maintenance to complex renovations and remodeling.
The model is popular because it offers advantages for both businesses and homeowners. For businesses, it offers high profitability given high home services demand and relatively low costs. For homeowners, it offers convenient, affordable ways to get repairs and maintenance.
Different ways to operate exist. Some take a broad approach and compete with many competitors. Others find specific niches with lower competition. In these cases, profit margins are typically higher but demand is likely lower. For example, lawn mowing is highly competitive with low margins. Landscape architecture is far less competitive but fewer homeowners seek those services.
As a rule, services requiring less skill have lower margins and greater competition. In these cases, businesses differentiate through unique brand messages, offering additional or bespoke services, or expanding into multiple broad home services like HVAC, plumbing, and electrical under one brand.
The most successful models solve homeowner problems with greater efficiency, courtesy, and quality than competitors. The home services market is rewarding when focused on customer solutions. It collapses quickly when businesses lose customer service focus.
Here are key elements of a successful home services business:
- A strong reputation: Respect is earned through strong reviews and referrals. This means quality services, reliability, and honesty with customers.
- A good team: This challenges many home service businesses. You need knowledgeable, experienced, reliable employees. As home services professionals increase, owners compete for both customer share and quality employees.
- Proper marketing: Home services businesses need proper marketing to reach potential customers. Working with home services marketing experts is vital. As demand increases, competition for paid advertising and inbound marketing grows. Understanding how to buy ads properly helps you grow.
If you’re starting a home services business, do your research and plan carefully. For current owners, planning is a unique puzzle. With hard work and dedication, you build a successful business providing quality services. Yet you must create a plan for adaptation and growth as the industry changes.
Home Service Business Plan
A home service business plan outlines your business strategy. Include your goals, objectives, target market, marketing strategy, and financial projections.
The plan is important for businesses of all sizes. It secures funding, attracts investors, and guides growth. Within home services, the plan constantly evolves. Annual review keeps you ahead of competitors.
For example, reading verified research, learning about people employed in your industry, and forecasting trends guides your business forward.
Here are key elements of a home service business plan:
- Executive Summary: A brief overview including organizational mission, goals, and detailed target market examination.
- Company Description: More detail about your business, including history, ownership structure, and products or services. As high-quality employee competition increases, company culture attracts the right people.
- Products or Services: A description of what you offer. This helps understand potential specialty changes and unforeseen local demand shifts.
- Market Analysis: Exhaustive research into home services, including market size, growth rate, and key players. Third-party sources often provide this, especially for in-demand services.
- Target Market: Beyond your ideal market, this breaks down actual customers. Demographics help you compare against your executive summary. If needed, leadership adapts based on CRM results and sales history.
- Marketing Strategy: Outline your plan to grow and reach your target market. Include target market information, marketing channels, and budget.
- Financial Projections: Information on expected financial performance. Include revenue, expenses, and profit expectations.
How to Create a Business Plan for the Home Services Market
New entrepreneurs and experienced owners often make the same business plan errors. Working with consulting or marketing teams helps create a market report and analyze your business. These four tips guide business plan writing:
- Be clear and concise: Your plan should be easy to read and understand. Avoid jargon or technical language.
- Be realistic: Your plan should be realistic in goals and projections. Don’t overstate potential or underestimate challenges.
- Be specific: Provide details about your target market, marketing strategy, and financial projections.
- Be flexible: Your plan should adapt to market changes or business shifts. Prepare to make changes as needed.
Writing a home service business plan should be data-driven. This challenges young companies, those expanding to new markets, and companies with poor data management.
Home Service Marketing
The changing home service marketing landscape provides opportunity for success. Industry data created a new marketing way. At Valve+Meter, our research team understands home services trends.
When your company’s data combines with marketplace research, marketing runs your business plan. It guides much of your strategy. Home service marketing’s goal is increasing business awareness, generating leads, and closing sales. Data removes guesswork so return on marketing spend is greater.
Performance marketing uses data collection methods to understand which tactic earned each qualified lead. Because so many home services marketing channels exist, spend only on channels growing your market. The best home services marketing strategy adapts and generates greater growth.
Join the Growing Home Service Industry
Many home services professionals work across the US. While some industries shrink or change dramatically, home service professionals have success opportunity for years. New technologies and services emerge constantly. If your business must adapt, the home services market overflows with opportunity.