How to Cash in on the Home Services Gold Rush

The home services industry isn't just growing—it's exploding. If you're a business owner in this space, you're sitting on a potential gold mine, but only if you know where to dig. Let's cut through the noise and get straight to what matters for your bottom line in 2025 and beyond.

The $6.54 Trillion Opportunity You Can't Afford to Miss

The numbers don't lie, and they're telling an impressive story. The global home services market is projected to increase by USD 6.54 trillion between 2024 and 2028, growing at a Compound Annual Growth Rate (CAGR) of 40.34%, according to Technavio..

Even more eye-popping? The online on-demand home services market is racing ahead even faster. According to Grand View Research, “the global online on-demand home services market size was estimated at USD 3.71 billion in 2021 and is anticipated to reach USD 14.7 billion by 2030, growing at a CAGR of 16.7% from 2022 to 2030.” If your business isn't positioned to capture this digital wave, you're essentially leaving money on the table.\

This growth is reflected in real business activity. The home services sector recorded over 278,000 new business openings in 2023, outperforming all other categories by 199,000 openings. Yelp's 2023 Business Openings Report shows this growth wasn't just a flash in the pan—it represents a 32% year-over-year increase in new home service businesses.

Why Are We Seeing This Home Services Boom?

Remember the "golden handcuff" effect? Those pandemic-era mortgage rates did something interesting—they locked homeowners into their current properties, making renovations and upgrades more attractive than moving. Angi's 2024 State of Home Spending report found that 67% of homeowners would prefer to renovate their current homes rather than move, reflecting challenges like high interest rates and limited housing inventory.

Data from Angi's research shows that despite a 12% decline in total home project spending in 2024, an impressive 93% of homeowners plan to take on home projects in 2025, with routine maintenance (36%), interior painting (22%), and flooring installations (13%) topping the list of planned projects.

But here's the thing—even as interest rates eventually normalize, the demand won't disappear. The housing stock in America isn't getting any younger, with Expert Market Research reporting nearly 40% of homes being over 50 years old, which significantly increases the demand for home services related to plumbing, electrical work, roofing, and structural repairs. Plus, homeowners have fundamentally shifted how they think about their spaces.

What Do Today's Homeowners Really Want From You?

If you're still pitching return on investment (ROI) as your main selling point, you're missing what today's customers actually care about. The pandemic changed things—permanently.

Have Homeowners Stopped Caring About ROI?

In a word: yes. Angi's 2023 State of Home Spending report marks the fourth consecutive year that ROI as the primary motivator for home improvement has declined. In 2023, only 5% of American homeowners cited ROI as their primary motivation for home improvements.

As reported by Kitchen & Bath Business, "Prior to the start of the COVID-19 pandemic, 2020, ROI was consistently a top motivating factor for doing work on our homes, but as the pandemic changed the way we think about our homes, it also changed what motivates American homeowners to take on improvements."

Instead, they care most about maintaining their home's condition (35%) and making their home better suited to their lifestyle (23%). Research from GlobeNewswire confirms that homeowners' primary motivations are now focused on maintaining their homes' condition and adapting spaces to better suit their lifestyle needs.

What does this mean for you? Frame your services around comfort, functionality, and personalization—not just property value increases.

How Much Are They Willing to Spend?

In 2023, the average homeowner spent $13,667 across 11.1 projects—a 6% increase compared to 2022, according to Angi's research. Their data shows home improvement spending was $9,542 per household with homeowners completing an average of 2.8 improvement projects.

Angi's 2024 State of Home Spending report reveals that homeowners spent an average of $12,050 on home projects in 2024, down from $13,667 in 2023. This shift reflects changing priorities with essential upkeep and lifestyle-driven upgrades taking precedence over discretionary improvements. Home maintenance spending was $1,750 (down from $2,458 in 2023), while emergency repairs decreased to $978 (compared to $1,667 in 2023).

Looking ahead, GlobeNewswire reports that 46% of homeowners plan large-scale projects over the next five years, with kitchen remodels (31%) and bathroom upgrades (28%) topping the list. Despite economic pressures, an impressive 93% of homeowners plan to tackle home projects in 2025.

How Do Different Generations Approach Home Services?

According to Angi's 2024 State of Home Spending Report, Baby Boomers led home spending in 2024, averaging $14,140 with a focus on home improvements. Meanwhile, Millennials prioritized maintenance, spending $2,316 on upkeep—$1,000 more than any other generation.

According to Kitchen & Bath Business, "as millennials are still in their prime home-buying years, they were the top spending age cohort in 2022 and in 2023. In the last year, they spent an average of $16,136 on home improvement, repairs, and maintenance."

The generational divide is also evident in planning for future projects. According to the same Angi report, 63% of homeowners aged 18-44 are actively saving for future projects, compared to just 49% of homeowners aged 65 and older. This forward-thinking approach among younger homeowners suggests they're more strategic about home investments.

Additionally, multigenerational living is shaping spending patterns—1 in 4 homeowners live in multigenerational households, and these households are more likely to take on larger renovations and add lifestyle-enhancing features to accommodate diverse family needs.

Understanding these generational differences can help you tailor your marketing and service offerings accordingly.

Is Your Digital Presence Actually Costing You Money?

Having a website isn't enough anymore—not even close. Your digital strategy directly impacts your revenue, and the data shows most home service businesses are leaving serious money on the table.

Why Are Online Bookings No Longer Optional?

The shift toward digital platforms in the home services industry has been dramatic. Expert Market Research, "The increasing adoption of mobile apps for booking home services is driving United States home services market growth," with more consumers now preferring app-based service bookings.

According to GetApp's research, 94% of consumers would be more likely to choose a new service provider if that provider offered online booking options. This reflects the growing consumer expectation for convenient, 24/7 scheduling capabilities.

The urgency of mobile optimization cannot be overstated. GoDuo, the increasing use of smartphones for online searches has made digital presence essential for home services businesses, with nearly half of all Google searches being for local information. If your website isn't mobile-optimized, you're potentially invisible to 9 out of 10 potential customers.

Verified Market Research highlights that "the U.S. Home Services Market has witnessed a significant shift with the increasing use of digital platforms, making it more accessible and efficient for consumers to find and hire professionals." Their analysis shows that online platforms, mobile apps, and service aggregation websites have streamlined the process of connecting homeowners with service providers, offering convenience and transparency.

Are You Answering Your Phone Calls?

Invoca's analysis says that phone calls generate 10-15 times more revenue than online messaging, with 62% of customers calling before deciding on a service provider.

In terms of communication preferences, Angi's research shows that 46% of homeowners prefer phone calls, followed by 39% who prefer email, and 15% who prefer text. However, these preferences vary significantly by generation: over 53% of Baby Boomers prefer phone calls, while less than 43% of millennial homeowners prefer this method. Generation X shows the least preference for phone contact (36%), instead favoring emails (44%) and texts (21%).

Yet many businesses are missing these critical opportunities. According to Invoca's analysis, 18% of home services calls go unanswered on weekdays, and a whopping 41% go unanswered on weekends. Their research also found that 38% of consumers will stop doing business with a company after a bad call experience. And if you're putting people on hold? 75% will hang up within 10 minutes.

The message is clear: every unanswered call is money walking out the door.

How Can You Overcome the Skilled Labor Shortage?

The labor shortage in home services isn't just an inconvenience—it's actively capping growth potential for businesses across the industry. Housecall Pro's research confirms that despite economic uncertainty, 77% of professionals surveyed expect their business to grow over the next year, with 40% anticipating growth of more than 10%. However, finding qualified workers remains a significant challenge.

Why Is Finding Good Help So Hard?

The skilled labor gap continues to widen. According to ServiceTitan, an average of 382,000 monthly job openings arose in construction between August 2023 and July 2024. Their analysis of Deloitte data shows this trend will increase as the contractor workforce continues to age.

The situation is particularly alarming in specific trades. As reported by ServiceTitan's industry statistics, one in four construction workers are over 55, and when they retire, they'll take valuable expertise out of the labor market. Even more concerning, data from NewsNation indicates that by 2027, the U.S. will have a shortage of 550,000 plumbers.

ServiceTitan's research further reveals that in April 2024, the US construction industry had roughly 440,000 job openings according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics' Job Opening and Labor Turnover Survey—the highest levels recorded since industry-level data was first collected.

What Are Successful Companies Doing About It?

Forward-thinking businesses are addressing the labor shortage through innovative approaches. The National Student Clearinghouse Research Center reports that the number of students enrolled in vocational-focused community colleges increased 17.6% from 2023 to 2024, underscoring the growing appeal of alternative career paths.

Home service companies are also embracing technology to enhance productivity. Housecall Pro's survey found that 42% of professionals reported using AI tools in the past year, with 25% noting that AI tools have already increased their revenue and jobs.

Unlike other industries where technology threatens jobs, 44% of home service professionals surveyed feel confident that technological advances like AI will enhance jobs in the trades rather than replace them. Housecall Pro notes that "unlike other industries, the skilled trades remain 'AI-proof,' as hands-on work like HVAC replacements and emergency plumbing issues require human problem-solving abilities in the field."

The companies that solve the labor puzzle first—through training programs, technological enhancement, and innovative recruitment—will have an enormous competitive advantage in the years ahead.

How Important Is Sustainability to Your Bottom Line?

Environmental consciousness isn't just good for the planet—it's good for business. The data shows a clear trend toward eco-friendly home services that savvy business owners are already capitalizing on.

What Green Services Do Homeowners Want Most?

Sustainability has moved from a nice-to-have to a must-have feature in home services. According to Angi's 2024 State of Home Spending Report, homeowners are increasingly planning for sustainable living improvements, including solar panel installations and energy-efficient upgrades.

According to Angi's research, 14% of surveyed homeowners plan to install solar panels and 13% plan to install or take on energy efficiency or eco-friendly projects in 2024, reflecting growing consumer awareness about environmental impact and long-term cost savings.

According to Kitchen & Bath Business, there's a notable trend toward sustainable elements in home design. Industry data indicates that over 70% of kitchen and bath experts anticipate increased demand for sustainability in design over the next two years, with more than half believing sustainable design will become essential rather than optional.

The most popular sustainable elements homeowners request include:

• LED lighting (81% in kitchens, 75% in bathrooms)
• Water-conserving products (55% for bathrooms)
• Energy-efficient products (59% for kitchens)
• Insulated windows and doors (46% for kitchens, 42% for bathrooms)

Mordor Intelligence reports that the sustainability trend is being driven by homeowners becoming more conscious of the environmental impact of their properties, leading to increased demand for eco-friendly services such as solar panel installations, sustainable landscaping, and green building materials.

Are There Growing Niche Opportunities in Eco-Friendly Services?

Absolutely. Yelp's business data shows that consumers are upgrading their outdoor spaces with sustainable options, with notable growth in businesses offering services like artificial turf (up 30%), which provides a low-maintenance, water-saving alternative to traditional lawns.

Yelp's State of Services report highlights that pet-friendly home services are experiencing significant growth, with pet-related landscaping seeing substantial increases as homeowners seek more sustainable, pet-safe outdoor environments.

Climate concerns are also driving demand for weather-resistant and energy-efficient home improvements. According to Yelp data, home services categories seeing new business growth in response to extreme weather include generator installation and repair (up 49%) and waterproofing services (up 19%).

These niche opportunities allow smaller companies to differentiate themselves in otherwise competitive markets by focusing on specialized, eco-friendly service offerings that address specific consumer concerns about sustainability, energy efficiency, and climate resilience.

Is Your Online Reputation Making or Breaking Your Business?

Your online reputation has never been more critical for business success. ServiceTitan's industry data shows that in 2024, 82% of contractors planned to build a good brand reputation to stand out in the market. This strategy aligns perfectly with customer priorities. According to BrightLocal's 2024 Local Consumer Review Survey, 88% of consumers would use a business that responds to all of its reviews (both positive and negative), showing how critical reputation management is for service providers.

How Do Customers Research Home Service Companies?

The customer journey now begins firmly online. According to BrightLocal's 2024 Local Consumer Review Survey, an overwhelming 94% of homeowners begin their search for contractors online, and 81% check reviews before even making a phone call.

Evidence from Verified Market Research indicates that "with the increasing use of digital platforms, consumers can now easily compare prices, read reviews, schedule appointments, and even pay for services online." This digital transformation has fundamentally changed how consumers evaluate and select home service providers.

GoDuo's analysis of the home services industry reveals that "online reputation across social media and review sites is more critical than ever as the majority of homeowners start their buying journeys online." Their research confirms that most consumers research multiple review platforms before making decisions.

The multi-platform approach to research is significant. BrightLocal's data shows 83% of consumers use Google to find local business reviews, but 74% use at least two review platforms and 34% use three or more. This highlights the importance of maintaining a strong presence across multiple review platforms.

Quality matters more than quantity when it comes to reviews. BrightLocal's research found that 71% of consumers would not consider using a business with an average review rating below three stars. This threshold effect means that businesses with poor ratings may be automatically eliminated from consideration regardless of other factors.

Does Responding to Reviews Actually Matter?

More than you might think. According to the Local Consumer Review Survey, a compelling 88% of consumers would use a business that responds to all of its reviews (both positive and negative), compared to only 47% who would consider a business that doesn't respond at all.

The way businesses respond to reviews significantly impacts consumer perception. BrightLocal's analysis shows that review response demonstrates accountability, customer service quality, and business values to potential customers.

ServiceTitan notes that tools like "ServiceTitan Marketing Pro - Reputation help home business companies generate a strong online presence through listings management and positive reviews automation." These technological solutions can help businesses systematically manage their online reputation, which has become a critical competitive factor.

Every review is an opportunity to demonstrate your customer service values to potential clients who are watching, and in today's digital marketplace, someone is always watching.

What Marketing Strategies Actually Work for Home Services?

With limited time and marketing budgets, home service businesses need to focus on high-impact strategies that deliver real results. ServiceTitan's research highlights that understanding consumer behavior and preferences is essential for effective marketing in the home services industry.

How Important Is Personalization?

Personalization has become a crucial differentiator in home services marketing. BrightLocal's findings show that 80% of consumers are more likely to do business with a company that offers personalized experiences. When interactions are well-personalized, 49% of customers feel the company cares about earning their business, and 47% are more likely to choose that provider.

According to Verified Market Research, "companies are expanding their service offerings and focusing on customer experience to differentiate themselves. This includes offering loyalty programs, same-day services, and guaranteed satisfaction to attract and retain customers." Their analysis emphasizes that "the emphasis on quality, reliability, and customer satisfaction has become crucial for success in this competitive environment."

This personalization can range from remembering customer preferences to more sophisticated approaches like tailoring communication based on past service history and individual home needs. Mordor Intelligence reports that companies that implement customer-centric approaches experience higher retention rates and customer lifetime value.

Which Communication Channels Should You Prioritize?

Communication preferences vary significantly by generation, making a multi-channel approach essential. Research from Angi reveals that overall, 46% of homeowners prefer phone calls, followed by 39% who prefer email, and 15% who prefer text.

However, BrightLocal's data shows important generational differences: over half of Baby Boomers (53%) prefer phone calls, while less than half of millennial homeowners (43%) prefer this method. Generation X shows the least preference for phone contact (36%), instead favoring emails (44%) and texts (21%).

ServiceTitan's analysis indicates that local news ranked higher than Instagram, YouTube, and TikTok for business information. Their research found that "social media still matters, but a localized marketing approach is also important." This suggests that home service businesses should maintain a balanced marketing strategy that combines traditional local marketing with digital channels.

Matching your communication to customer preferences significantly improves satisfaction and conversion rates. As GoDuo points out, even though many customers prefer online messaging, phone calls generate 10-15x more revenue than online messaging, with 62% of customers calling before deciding on a service provider.

Is Word-of-Mouth Still Effective?

Absolutely. According to BrightLocal's Consumer Review Survey, 92% of customers state they place more trust in earned media—such as word-of-mouth or referrals from friends and family—than in any other type of advertising.

ServiceTitan's research confirms that referral programs are highly cost-effective, with 54% of marketers finding them more cost-effective than other channels for lead generation. Their data shows that customers acquired through referrals typically have a higher retention rate and lifetime value.

A Localogy analysis of home service business trends reveals that companies with systematic approaches to generating and managing referrals consistently outperform competitors, especially in local markets where reputation and trust are paramount factors in consumer decision-making.

Word-of-mouth has gained additional importance in the digital age, with online reviews essentially functioning as digital word-of-mouth, carrying similar trust and influence as traditional personal recommendations. BrightLocal notes that online reviews essentially function as digital word-of-mouth, carrying similar trust and influence as traditional personal recommendations.

Seizing the Home Services Opportunity

The home services industry is experiencing unprecedented growth, creating tremendous opportunities for prepared businesses. By focusing on what today's homeowners truly value, building a strong digital presence, addressing workforce challenges, embracing sustainability, nurturing your online reputation, and implementing effective marketing strategies, you can position your business for substantial growth in 2025 and beyond.

The companies that will thrive aren't necessarily the largest or most established—they're the ones that adapt most quickly to changing consumer preferences and market conditions. With the right approach, your home service business can capture its share of the $6.54 trillion growth opportunity on the horizon.

Ready to take your home service business to the next level? Contact me for personalized strategies tailored to your specific business needs.

FAQ: Your Home Services Growth Questions Answered