Top 50 Home Services Industry Statistics You Need to Know

The Growth of the Home Services Industry

The home services market is expected to grow rapidly as the economy stabilizes. Below are some key statistics that offer a broad overview of recent shifts in the home services market.

1. Home services spending will likely increase by $6.5 billion between 2023 and 2028 at a CAGR of 40.34 percent. Home care, design, and repair services are set to see the most significant share of this growth. (Source: Technavio)

2. NAHB chief economist Robert Dietz predicts that mortgage rates will decrease to six percent in mid-2025. This will leave consumers with more disposable income to invest in their homes. (Source: Builder)

3. Construction spending surpassed $2 trillion this year. As mortgage rates lower next year, residential home sales and construction will likely rise. (Source: Deloitte)

4. There’s been a 150 percent increase in home service bookings since the pandemic. That’s due primarily to the rise in on-demand home service apps that make it easier than ever for homeowners to book services. (Source: Amenify)

5. 278,000 new home service businesses opened in the US in 2023. A survey found that this new growth surpasses every other business category. (Source: Yelp)

6. There were 32 percent more new home service businesses year-over-year in 2023. As business speeds up, competition is set to increase as well. (Source: Yelp)

What’s fueling these rapid changes? The on-demand home services industry has made it much easier for customers to book services but that’s not the whole story.

Technology Adoption in Home Services

Technology is changing the game across specialties. BIM, IoT, robotics, and automation will all continue to boost work productivity, but there’s an increasing push to use technology to scale operations.

7. AI and automation save $720,000 in admin labor costs for planning and scheduling. Reducing office data entry has helped many service companies achieve better returns by lowering overhead costs. (Source: Associated Builders and Contractors)

8. AI and automation can speed up financial and project control forecasting by 8x. Accurate, on-demand data means faster prediction capabilities. (Source: Associated Builders and Contractors)

9. Businesses that lead with data see a 50 percent increase in profit growth. However, only 38 percent of construction data is collected and analyzed. (Source: Autodesk)

10. 24 percent of businesses benefit from data to improve site safety. Field service data can help business owners mitigate risk on job sites. (Source: Autodesk)

11. Over 90 percent of construction firms rely on smartphones. Mobile technology has become table stakes for most construction firms. (Source: Autodesk)

12. 43 percent of contractors say their biggest IT challenge is training. Despite the benefits, contractors struggle to find the time and resources to train new hires on company technology. (Source: Associated General Contractors of America)

As technology becomes increasingly common in home services operations, businesses can leverage financial and customer data to stay competitive in 2025.

Customer Preferences and Expectations

Customer preferences have changed with the housing market. The past focus on increasing home value for resale has shifted to a focus on home maintenance and repair. 

13. Baby boomers own 42 percent of US homes, but 37 percent of home buyers are millennials. That means the demographic for home services is set to shift toward millennials in the coming years. (Source: Angi)

14. In 2023, 39 percent of customers requested maintenance services, making it the most popular project category. The next most popular project type was interior painting, followed by appliance installation. (Source: Angi)

15. 65 percent of homeowners are planning large investments in home projects. This includes bathroom and kitchen updates, outdoor renos, and sustainability upgrades. (Source: Angi)

16. Pet-friendly lawn care services saw 122 percent growth in 2023. Pet-friendly landscaping followed closely with a 98 percent increase. (Source: Plumbing & Mechanical)

17. Demand for carpenters grew by 54 percent in 2023. Past mortgage rate increases could fuel this growth, as homeowners prefer to stay and work on their homes rather than sell. (Source: Yelp)

18. Personalization is important to 80 percent of customers. In-home services can include recommendations, advice, and personalized discounts on additional maintenance. (Source: Epsilon)

As the popularity of different project types changes, consider which trends in your field you can capitalize on.

Labor and Workforce Statistics

The labor shortage is nothing new, but it’s still rising. The labor market in 2025 will be a worker’s market in-home services—so if you want to attract talent, you may need to get creative.

19. An average of 382,000 monthly job openings arose in construction between August 2023 and July 2024. As the contractor workforce continues to age, this trend will increase. (Source: Deloitte)

20. One in four construction workers are over 55. When they retire, they’ll take valuable expertise out of the labor market. (Source: Associated Builders and Contractors)

21. By 2027, the US will have a shortage of 550,000 plumbers. This represents an even more significant shortage than that of the construction industry. (Source: NewsNation)

22. Nearly 30 percent of electricians are close to retirement. It’s not just a construction issue—the shortage is happening across home services industries. (Source: McKinsey)

23. Jobs for electricians will see an 11 percent growth rate over the next decade. That’s faster than the growth rate for carpenters (four percent) and construction laborers (seven percent). (Source: Bureau of Labor Statistics)

24. 50 percent of home service businesses struggle to find skilled talent. As a result, more home service businesses are investing in training and certification. (Source: Amenify)

Attracting talent is not the only challenge home service providers will face next year. They will also needave to double down on their lead generation strategies.

Marketing and Lead Generation Insights

As consumer demographics change, home service providers will have to keep a finger on the pulse of how homeowners are finding and booking new services.

25. In 2024, 36 percent of consumers looked at two different review sites before deciding on a service business. Although the most popular place to check reviews for service businesses is Google, other sites like Facebook and Yelp still matter. (Source: BrightLocal)

26. Local news ranked higher than Instagram, YouTube, and TikTok for business information. Social media still matters, but a localized marketing approach is also important. (Source: BrightLocal)

27. Ninety percent of consumers use smartphones for online searches. This highlights the importance of mobile-optimized websites that create a seamless customer journey from search results. (Source: Comrade Digital Marketing).

28. Phone calls generate 10-15x more revenue than online messaging. Even though many customers prefer online messaging, 62 percent of customers will call before they decide on a service provider. (Source: Invoca)

29. 73 percent of roofing customers find a contractor by word of mouth. Search engines ranked second at 54 percent. (Source: Roofing Contractor)

30. 82 percent of contractors plan to stand out in the market with a good brand reputation. A great brand will set your business apart no matter what channel your customers find your service on. (Source: ServiceTitan)

In short, digital marketing continues to be an increasingly important tool for lead generation. However, it works best with local and community approaches that draw on careful market research.

Revenue and Financial Trends

There is much good news on the revenue front for home services businesses. Revenue and financial trends show increased market size for many specialties.

31. Homeowners spent 51 percent more on home services projects in 2023 than they did in 2019. On average, each household spent $13,667 on 11 projects throughout the year. (Source: Angi)

32. 40 percent of homeowners said rising interest rates were a factor in home improvements. High interest rates make moving less attractive, so homeowners stay put and invest in their current homes. (Source: Angi)

33. Demand for insulation and waterproofing increased by 26 and 23 percent respectively, in 2023. This is part of a larger trend: homeowners are upgrading to protect from weather events due to climate change, increasing demand for home services. (Source: Plumbing & Mechanical)

34. 51 percent of businesses plan to boost profitability by optimizing overhead costs. Reducing overhead spending can maximize revenue. (Source: ServiceTitan)

35. 65 percent of home services projects over $5,000 are financed. While many customers head to the bank for loans, 25 percent are interested in financing options through their contractors. (Source: Joist)

36. HVAC contractors saw 10 percent growth in 2023. Heat events in southern American states significantly drive revenue increases for HVAC providers. (Source: Plumbing & Mechanical)

Post-pandemic supply chains are stabilizing, but energy costs, labor shortages, and tariffs may keep expenses high. New opportunities abound, but home services businesses must monitor their bottom line closely.

Customer Satisfaction and Retention Rates

Customer satisfaction and retention remain essential but require adjusting to new expectations.

37. 39 percent of brands saw a decline in customer service quality last year. That creates an opportunity to stand out with excellent customer satisfaction rates. (Source: Forrester)

38. 94 percent of customers are more likely to book a service if they can do it online. Many also prefer canceling and rescheduling appointments online. (Source: GetApp)

39. 97 percent of customers expect a return call from a roofer within a week. 54 percent would prefer a call back within two days. (Source: Roofing Contractor)

40. Customers will spend 17 percent more with a company that offers high-quality service. Front-line training is crucial for putting your best foot forward to win higher-value projects. (Source: Contracting Business)

41. Businesses that focus on retention are 60 percent more profitable. Even a five percent increase in retention is less expensive than acquiring new customers. (Source: G2)

42. In positive reviews, 41 percent of HVAC customers cited courtesy and friendliness. This ranked highest among categories such as skill/knowledge and punctuality. (Source: Better Business Bureau)

Focusing on convenience and quality service will boost retention, creating a positive feedback loop. Satisfied customers tend to leave positive online reviews and generate referrals over time.

Sustainability Trends in Home Services

As environmental concerns continue to influence home improvement projects, consumer spending will flow toward energy-efficient upgrades that reduce the cost of utility bills.

43. 15 percent of American homeowners installed solar panels in 2023. This reflects a growing interest in reducing electricity bills. (Source: Angi)

44. Solar panel installer jobs will grow at a rate of 48 percent over the next decade. This is dramatically higher than most occupations' four percent average growth rate. (Source: Bureau of Labor Statistics)

45. 70 percent of industry experts predict an increased demand for sustainable kitchen and bathroom fixtures. These include LED lighting, water-conserving fixtures, and insulated windows. (Source: Builder)

46. Sales of heat pumps fell by 17 percent in 2023. However, gas furnace sales fell even more, indicating a continued rise in the demand for sustainable HVAC systems. (Source: MIT Technology Review)

47. 73 percent of new home buyers look for an ENERGY STAR-certified house. New construction projects will show increased demand for sustainable home fixtures to meet certification standards. (Source: Panasonic)

48. Environmental Protection Agency refrigerant restrictions could increase HVAC equipment costs by 30 percent. With sustainable fixtures in demand, home services businesses may need to adjust pricing to protect profit margins. (Source: Aire Serv)

As sustainable home services become more popular, it may be important to educate customers on the ROI of investments in low-energy home improvements.

Future Outlook: What to Expect in 2025 and Beyond

As mortgage rates decline, home services businesses will have a significant opportunity to capitalize on increased demand—if they leverage the right technology and customer service strategies. 

In 2025, emerging opportunities for growth include:

• Sustainable home services that align with demand for smart home technologies, waterproofing, and energy-efficient fixtures. This includes technological advancements that blend smart home features with energy reduction.

• High-quality customer service with a focus on digital marketing strategies that improve the customer journey, CSR training, and friendly home services.

• Automation for business processes that help business owners streamline administrative tasks, collect insights in the field, and make data-driven decisions.

Planning for the year ahead will involve monitoring changing trends, particularly in key categories such as sustainability, customer demand, and new technology.

Why Paying Attention to Industry Statistics Matters

Keeping an eye on industry statistics gives you a broad view of your market. In a competitive landscape, they can keep you one step ahead of trends that will shape the home services sector—and your business prospects—in the years ahead. 

You’ll be more prepared to take on the opportunities and challenges of the future instead of scrambling to adapt. 

• Stay Competitive: Shifts in consumer preferences will drive growth opportunities. If you can predict them more accurately, you’ll be able to take advantage of those opportunities before your competitors do.

• Make Informed Decisions: Just like you might forecast your revenue using financial data, industry statistics can help you make informed decisions. 

• Identify Growth Opportunities: When you focus on doing things the same way you’ve always done them, you might miss out on new opportunities in the market. Industry statistics can help you identify additional services you might offer that you hadn’t thought of before.

• Mitigate Risks: Statistics can also tell you where to be cautious and avoid investing in services that are unlikely to perform well financially.

• Leverage Technology: Technology can help you streamline operations so you can focus on more strategic decisions. It can also help you collect more data to make more informed decisions.

Finding the industry statistics that matter to your business can be a challenge, but once you know your sources, it’s much easier to go back and look at how your industry is evolving.

How Can ServiceTitan Empower Home Service Businesses with Data?

Data is the cornerstone of better business outcomes. When you collect data on your business, you can use it to benchmark your performance against others and assess your business’s growth trajectory.

ServiceTitan’s all-in-one platform provides home services businesses a powerful way to collect data and make their core business operations run more smoothly. Below, we’ll cover some of the specific ways it can help you make your business a success in 2025.

1. Streamlined Reporting and Analytics

ServiceTitan’s reporting tools give you actionable insights in the office and the field. You can track key metrics such as:

• Customer satisfaction

• Job completion rates

• Revenue by technician

• Marketing campaign tracking

• Call center performance

Reporting features are available on both desktop and mobile, and you can customize reports to view your business's most important details.

This lets you create and measure KPIs in your business to identify service trends, optimize performance across your entire team, and spot areas for improvement early.

For example, if you’re tracking revenue trends for your field, you can create a custom report that tracks those same KPIs for your business. You can also schedule reports to be sent automatically to key team members who need to stay informed.

2. Enhanced Customer Experience

ServiceTitan’s customer experience features keep customer preferences and service history close at hand. When customers call in, your CSRs can greet them by name and pull up their details for personalized service from the moment they say “Hello.”

Your customer dashboard shows you customer lifetime revenue, locations, invoices, and projects so you can see all their information at a glance for faster, more efficient service.

You’ll also be able to see feedback data, allowing you to view and respond to every review you receive, boosting customer satisfaction and retention.

And with automated reminders, you’ll be able to ensure consistent, high-quality service that’s always on time.

When customers book with you, ServiceTitan can help you elevate your service with automated email and text notifications about their next appointment. This way, customers can be ready for your techs to arrive—or reschedule at their convenience.

Customers can also access all their invoices and estimates directly from ServiceTitan’s customer portal, compare pricing, and pay online at their convenience, creating the digitally optimized service they have come to expect.

3. Optimized Marketing Efforts

ServiceTitan has comprehensive marketing tools that track campaign spending and tie it directly to revenue, giving you a clear picture of ROI.

You can also integrate ServiceTitan with Google Local Services Ads to add one-click booking that links directly to your CRM and auto-populates it with the customer’s information.

“With GLSA customers you don’t have a shopper,” says Shane Jaeger of Ben Franklin Plumbing in Dallas, “It’s someone serious about getting the work done. If you treat them right and give them a fair price, you should get the work.”

This integration reduces the effort for these high-interest leads to book with you, maximizing your revenue from local service ads.

4. Efficient Workforce Management

With labor shortages on the horizon, maximizing technician productivity is a game-changer. Tommy Mello of The Home Service Expert advises creating checks and balances around each process to help techs ensure success with every new project.

ServiceTitan’s scheduling and dispatch tools include intelligent schedule optimization, which matches technicians to the most profitable jobs and gives you instant insight into your schedule.

You can use the labor data in ServiceTitan to see technician availability and understand which jobs they excel at. This allows you to pair technicians with the jobs they’re best at when they want to work.

You can also use ServiceTitan’s reporting features to view technician scorecards, which provide complete transparency on what each technician does well and where they might need extra training.

This lets you target training and performance incentives that help technicians do their best work and reduce turnover.

5. Improved Financial Planning

With ServiceTitan’s financial reporting features, you can maximize your cash flow and analyze profitability from the same toolkit. 

With revenue data at your fingertips, you can forecast growth and make informed budgeting decisions to align your budget with the industry trends you want to capitalize on.

ServiceTitan can also automate invoicing and track payments for recurring jobs, saving you time and reducing human error. 

In a busy office, it’s easy to forget or delay billing for a big job because other work gets in the way. Yet that delay could easily block the cash flow you need for essential equipment and materials purchases. 

In ServiceTitan, you’ll get an instant overview of what invoices have been sent and which ones are outstanding. This will allow you to manage your budget and follow up on accounts payable in minutes, leaving you with more cash in the bank when you need it.

6. Seamless Integration with Existing Tools

Your business relies on data, but when that data is dispersed across multiple platforms, accessing the insights you need to make decisions becomes more challenging.

ServiceTitan integrates with over 100 apps and organizations in the home services industry to centralize your data for a complete view of your business. Our integrations include:

• QuickBooks

• Sage Intacct

• Angi

• Thumbtack

• The Home Depot

• Carrier

• Chiirp

And many more. With a unified system for tracking and analyzing all aspects of your business, you’ll have more profound insights into the data that matters to your bottom line.

Better still, our service partners can help you optimize ServiceTitan to deliver the reports, automation, and services that matter to you, making onboarding a breeze.

It’s Your Turn Now

With a strong year ahead for the home services industry, there’s no better time to prepare your business for success. Staying ahead of industry trends is only the first step; the next step is tailoring your business to create new opportunities and growth.

ServiceTitan makes it easy with tools that help you boost customer satisfaction, automate processes across your business from dispatch to marketing, and create a high-performing team.

ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25 percent in just their first year with us.