In recent years, home service businesses have become increasingly popular, offering flexible opportunities and potential for growth. Whether you’re an entrepreneur looking to start a home-based business, contemplating a career change, or thinking about diversifying your income streams, a home service business might be a perfect solution for you.
Let’s take a look at the top reasons why a home service business is a great choice.
5 Reasons to Consider a Home Service Business
1. Massive Market Size
The US home service market was valued at over $90 billion in 2023 and is expected to reach a staggering $156 billion by 2030. What’s behind the existing market size, and why will it grow to such a massive size?
For many homeowners, especially as they age or face mobility challenges, finding a trusted professional to handle home tasks becomes essential. Others may lack the expertise to tackle certain jobs safely.
Convenience is another key factor - dual-income households and busy professionals often rely on experienced companies for home maintenance and repair so they can prioritize personal or family time.
These groups have learned — often through experience and from the school of hard knocks — that routine maintenance helps them avoid future expansive repairs.
Considering these factors, the demand for home service businesses is here to stay, and it’s only growing.
2. Stable Nature of Home Service Businesses
Homeowners are eager to maintain and improve their most significant investment — their homes. Even when people are cutting back on luxuries, they continue to rely on essential home maintenance, repair, and improvement services.
As a potential business owner, navigating uncertain economic times can be very challenging. However, the home service industry includes a variety of businesses that are recession-resistant and even thrive during economic downturns. These include:
- Cleaning and organization
- Windows, glass, and doors
- Maintenance and repair
- Professional and specialized services
- Outdoor services
- HVAC, Electrical, and Plumbing
When exploring home service business opportunities, you’ll find that many offer the potential for recurring revenue, helping to mitigate economic risks and provide financial stability.
3. Home Ownership Trends
The National Association of Realtors conducts an annual survey about the profiles of homeowners and buyers. Here are a few statistics listed in the survey highlights:
First-time buyers made up 32%, up from last year's 26%. This increase is still below the 38% average seen since 1981.
13% of buyers purchased a new home, and 87% of buyers purchased a previously owned home.
With mortgage rates predicted to go down in late 2024, the housing market is likely to see increased activity. More homeowners are preparing their houses to be sold, and others are thinking of buying their first home. After closing, buyers will want to improve their new home with upgrades and renovations to suit their preferences.
It’s a simple equation. When more houses are being sold and purchased, there will be an increased need for upkeep, repairs, and upgrades.
According to a 2024 USA Today survey, “The typical homeowner has spent $5,775 on maintenance and repairs over the past 12 months. (Additionally, those) who moved into a new home since May 2023 have paid more than double in-home repairs — $12,225 — as they adjusted to their new living space and tackled lingering repairs.”
All of these numbers are great news for entrepreneurs exploring home services businesses.
4. Evolving Consumer Demographics
As homeowner demographics change, business owners must respond to changing market conditions and customer needs. Some industries don’t have the capacity to make those changes easily, but home service businesses can quickly adapt. Generational differences are one of these areas.
Millennials tend to be eco-friendly and prefer energy-efficient solutions and smart homes. As digital natives, their first instinct is to turn to online research to find products that meet their preferences. Over half of this population doesn’t have the home improvement skills needed, which means they are likely to rely on home maintenance and repair businesses to do the work for them.
Baby Boomers are those who are 55 – 73 years old, and during the years from 2024 to 2027, over 16 million will be at the common retirement age of 65. Because Boomers own 37% of small businesses in America, the gap between small businesses in operation and consumer needs is widening. The next few years will be an ideal opportunity for prospective business owners to fill the gap.
5. The Aging Housing Stock
The average home is surpassing 40 years. These aged and aging homes have an increased need for upkeep, improvements, and renovations and they simply need more tender loving care.
In addition to major changes like a new roof, older homes need repairs for everyday wear and tear, appliance repairs or replacement, updates to bring electrical systems to current codes, painting to refresh the interior and exterior, junk removal, and so much more.
With an increasing number of aging homes needing consistent maintenance and updates, there’s a steady market for professionals who can provide reliable, high-quality services to keep these homes in top condition.
How To Build a Home Service Business
Starting a new business poses many challenges for entrepreneurs or even for those entering a new market. As new products, appliances, and equipment are developed, a business owner needs to update their knowledge to keep up with current trends.
Even today’s digital marketing landscapes can pose marketing obstacles, requiring business owners to understand Google, learn how to leverage generative AI, and use marketing automation.
So, how do you build a home service business? You can either do it on your own and forge your own way, or you can invest in an existing business system and network. That’s where the benefits of franchising come in. The best franchises have an established business model, have already built brand recognition, and help you grow your business.
Find Your Home Service Franchise
A home repair franchise, home maintenance franchise, or other service franchise types can help you build a strong future — with the right franchisor.
Are you ready to explore your future in the home services industry? Download our franchise guide today and learn more!
