Surging Ahead: The Home Services Industry on Pace for Record Growth in 2024

Interesting article out this morning from Plumbing & Mechanical highlighting the growth of the home services industry over the past year. Utilizing Yelp data on business openings, the home services industry is on pace to see growth of 11% over last year’s record business openings total.

This upward trajectory highlights the sector’s resilience and adaptability in a rapidly changing economic landscape. As consumer preferences evolve and new challenges arise, the home services market continues to innovate and expand, positioning itself as a pivotal component of the nation’s economic recovery and development.

Renter-Friendly Home Upgrades Propel Business Growth

One of the most significant contributors to the home services industry’s expansion is the surge in renter-friendly home improvement projects. With the housing market remaining challenging and many Americans finding themselves priced out of homeownership, renters are opting to enhance their living spaces without the long-term commitments associated with purchasing property. This trend is reflected in the substantial increase in searches and business openings for services that cater specifically to renters’ needs.

According to Yelp data, there has been a staggering 362% increase in searches for home organization services, alongside a 73% rise in demand for peel-and-stick tiles, 41% for wallpapering, and 27% for home automation solutions. These services allow renters to personalize their homes affordably and reversibly, ensuring they can maintain their security deposits while enjoying improved living conditions.

Business owners are responding to this demand by expanding their offerings in these areas. Wallpapering services have seen a 61% increase in business openings, while furniture assembly and home automation services have grown by 25% and 23%, respectively. This alignment between consumer demand and business supply is a testament to the adaptability and responsiveness of the home services sector, positioning it as a cornerstone of the post-pandemic economic recovery.

Pet Services Experience Unprecedented Boom

The pet services industry is another major driver of growth within the home services sector. The pandemic saw a significant rise in pet ownership as families sought companionship during lockdowns, and this trend has continued into 2024. As more households embrace pets, the demand for specialized services catering to their needs has surged.

Yelp data reveals notable increases in searches for pet photography (up 14%), pet waste removal (up 14%), and pet transportation (up 13%) compared to the same period last year. Correspondingly, business openings in pet-related services have skyrocketed, with pet-friendly lawn services growing by 122%, pet-related landscaping by 98%, and pet waste removal services by 13%. Additionally, the emergence of pet cremation services, which have grown by 72%, highlights the increasing sophistication and diversification of the pet services market.

This boom presents fertile ground for entrepreneurs to innovate and expand their offerings. Businesses like ForeverLawn, which specializes in dog and drought-friendly artificial grass, exemplify how companies are tailoring their services to meet the unique needs of pet owners. The continuous growth in this segment underscores the enduring bond between Americans and their pets, driving sustained demand for high-quality, specialized services.

Weatherproofing Services Respond to Climate Challenges

The increasing frequency and intensity of extreme weather events have heightened homeowners’ awareness of the need to protect their properties from climate-related threats. This awareness has fueled a surge in demand for weatherproofing services, which encompass a range of solutions designed to enhance the resilience of homes against storms, heatwaves, and other environmental challenges.

Yelp data indicates a significant uptick in searches for weatherproofing-related services, including a 26% increase in insulation installation, a 23% rise in waterproofing services, an 8% growth in snow removal, and a 4% rise in home window tinting. These figures reflect homeowners’ proactive approach to safeguarding their investments and ensuring their homes remain comfortable and secure in the face of unpredictable weather patterns.

The business landscape mirrors this demand, with new openings in weatherproofing services growing substantially. Generator installation and repair businesses have seen a 49% increase, while waterproofing services have risen by 19%. Moreover, HVAC services have expanded by 10%, and snow removal services have grown by 36%, particularly in states that have experienced severe weather events this year.

States like California, Florida, Texas, and New York have witnessed the highest number of new HVAC business openings, correlating with the regions most affected by extreme heatwaves and other climate-related challenges. This trend underscores the critical role of weatherproofing services in the modern home services industry, as homeowners prioritize resilience and sustainability in their home improvement projects.

Geographic Expansion and Regional Growth Dynamics

While major states like California, Florida, and Texas continue to lead in the number of new home services business openings, smaller states are experiencing remarkable growth rates in this sector. South Dakota, Arkansas, and Vermont have seen their home services businesses increase by 39%, 35%, and 28%, respectively. This regional diversification highlights the widespread appeal and adaptability of home services across diverse markets.

In the top 50 metropolitan areas, mid-sized cities such as Cincinnati and Kansas City have exhibited some of the highest growth rates, with increases of 23% and 22%, respectively. These cities are emerging as hotspots for home services entrepreneurs, driven by robust local economies and post-pandemic recovery efforts that prioritize home improvement and resilience.

The growth in these mid-sized metros suggests a shift towards more balanced regional development, where smaller cities offer fertile ground for business expansion due to lower competition and a growing consumer base eager to invest in home services. This trend presents lucrative opportunities for new and existing businesses to tap into emerging markets and establish a strong presence in areas poised for continued economic growth.

Leading Brands and Market Leadership in Home Services

As the home services industry continues its upward trajectory, certain brands are distinguishing themselves as leaders in the market, driving innovation and setting industry standards. Yelp’s analysis of business openings, searches, and consumer interest from January to July 2024 highlights the fastest-growing home services brands across the U.S.

Ace Handyman and Richard’s Painting rank among the top performers, reflecting the sustained demand for reliable, high-quality home improvement services. These brands have successfully capitalized on the trend of modest home upgrades, catering to both renters and homeowners who seek to enhance their living spaces without undertaking extensive renovations.

Maven Air Care, Mighty Dog Roofing, and ATI Restoration are leading the charge in addressing the impacts of extreme weather conditions. By offering specialized services such as generator installation, waterproofing, and restoration, these companies are meeting the critical needs of homeowners striving to protect their properties from climate-related threats.

What’s Next for the Home Services Industry?

As interest rates stabilize and consumer spending power increases, the home services industry is well-positioned to continue its upward momentum. For entrepreneurs and investors, this presents a wealth of opportunities to innovate, expand, and capitalize on the sustained demand for high-quality home services. As the industry evolves, staying attuned to these trends and consumer preferences will be key to maintaining a competitive edge and driving continued success.

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Philip A. Saunders

Mr. Saunders serves as Mesa’s Vice President of Marketing, bringing with him a wealth of experience in strategic marketing and operations. In this role, Mr. Saunders is responsible for overseeing all marketing activities, utilizing a blend of traditional and digital strategies to enhance brand presence and profitability, managing a multi-million dollar marketing budget across various media platforms, and leading the continued implementation of CRM systems to streamline customer engagement and drive business growth.