Many homeowners don’t consider the home services market size despite consumer spending in it. Even home services owners may not realize the competition and growth opportunities available.
The data is hard to quantify because the home services industry constantly changes and pandemic spending shifted American behavior. Americans now spend far more time at home than pre-2020. Available data shows approximately 2.5 million home services businesses in the United States. The home services market generates over $500 billion in revenue annually. With more than 6 million people employed, this is a major economic driver.
More importantly, home services are expected to continue growing as more people hire out home repairs and maintenance. This means existing competition and new rivals will emerge in the digital advertising space.
To position your home services business for success, consider several things. First, the number of businesses varies by state and state demographics. Second, understand the factors driving home service spending growth. Third, future home services trends help business leaders plan strategies. Finally, a complete business and marketing plan becomes essential.
Home services market varies by location
Some online home services cross geographic boundaries. Meal prep delivery, moving truck rental, storage services, and other niche companies connect homeowners nationally. Generally, though, home services bind to specific service areas. The competitive landscape varies by location.
How Many Home Services Businesses Are There Near Indiana?
In Indiana, approximately 25K home services businesses operate. This includes plumbing, electrical, HVAC, painting, carpentry, roofing, landscaping, cleaning, home health care, and pet care.
As a Midwestern state, Indiana has seasonal demand for many services. Snow removal happens only a few months yearly. Concrete companies thrive in Indiana because seasonal climate changes affect basements, foundations, driveways, patios, and concrete.
The home services industry is large in Indiana and poised for explosive growth. In 2021, it generated an estimated $12.4 billion in revenue and employed over 160,000 people. Indiana’s aging housing stock increases demand for renovation and emergency projects.
How Many Home Services Businesses Are There Near Texas?
A much larger state like Texas has over 100,000 home services businesses. Many are similar to Northern and Midwestern businesses. However, business activities aren’t as seasonally affected in warmer states. Construction, exterior painting, roofing, landscaping, and outdoor services slow considerably in cold climates. During Texas’s relatively warm winters, these services operate nearly year-round.
Total home services costs for Texans in 2021 reached an estimated $50 billion. Demand is high, yet the industry is competitive. Many businesses vie for market share. While consumer demand exists, businesses must gain competitive positioning in crowded markets. Residential homes need many services, so all businesses must be visible.
In traditional marketing, pest control competes with plumbing for print ads, radio, television, billboards, and direct mail flooding mailboxes. From Indiana to Texas, better marketing strategy captures relevant, qualified leads for your business.
Home Services industry growth
Performance marketing uses data and technology to increase visibility when homeowners enter the market for your services. Instead of broadcasting your brand blindly, contemporary marketing meets your target audience at the right time and lower cost than outdated advertising.
This starts with studying the home services industry. These are dynamic times due to several factors:
- Healthier and Independent Seniors: An aging population increases home services demand. Older Americans with professional maintenance, repair, and emerging services like home health care stay in homes longer.
- Working Families: Growing dual-income households have less time for repairs and maintenance. They’re more likely to hire professionals. Working families also lack time to research dozens of options. Your business needs visibility and fast responses.
- Online Platforms: Smartphones and tech companies connect homeowners quickly with home services. With a few screen taps, homeowners request pest control or furnace repairs and schedule service.
- Home Improvement Culture: Homeowners have good reason to care for homes, but improvement projects often stem from cable channels, social media influencers, and the culture of replacing the old with new.
Adapting for the Future
Housing stock continues to age. Home improvement culture stays present in American culture. Rising interest rates discourage moving and building new homes. This is today’s home service industry landscape.
What about the future? Businesses forecasting with data ride the wave of trends. Early adopters make far greater profits in emerging demand spaces with few competitors. Key trends shaping home services in coming years include:
- Green home services: New businesses enter the market. From HVAC repair to landscape architecture, homeowners demand services that cut carbon footprint. For some, environment is priority. For others, saving money on energy costs motivates hiring. New technologies emerge yearly to meet this demand. Green homes need better insulation, windows, sustainable flooring, renewable energy appliances, solar panels, and other products. Offering these options now grows your business.
- Smart home market: Adjacent to green trends, smart homes grow rapidly. Soon, every appliance, light, gadget, lock, and security system connects to the internet. Home services companies will install, maintain, and repair these technologies.
- Millennial homeowner: Meet your future customer, quite different from the past. Green and smart home markets help older Americans, yet Millennials fuel these trends. To market to Millennials, show interest in sustainable, eco-friendly services. Meet these homeowners where they live—online.
Highly effective digital marketing
The home services industry is dynamic and growing. Abundant opportunities exist for businesses offering high-quality services at competitive prices. To capture your share, home services leaders must adapt to consumer demand and who new consumers are.
Customer service is more important than ever. Older Americans demand personal, customized service. In a saturated industry with millions of home service providers, homeowners spend money with responsive, effective, courteous companies. Rising generations of Millennials are equally discerning and savvy enough to share great 5-star experiences and poor 1-star service online.
Highly effective digital marketing identifies your target audience and captures their attention with strategic campaigns. When you attract qualified leads, success is far greater. Home service providers tend to deliver excellent customer service, especially when hired by the right customers.
With so many companies in home services, the only way to win is to find your niche, perform research, and use data to market your brand to homeowners in need of your great products and services.