Angie (merger of HomeAdvisor & Angie's List) recently published a report on key trends they're seeing in the home services market. As it's a popular industry in the search fund market I thought I'd provide a link.
- The total addressable market for home services is $657.4B
- The home improvement market is $475B and grew 26% in the past year.
- The size of the market in total project volume is 665.6M projects completed annually, with year over year increases in both improvement projects and emergency projects.
- The total home service market serving single-family houses is $500.2B
- Home equity gains of 7.6 trillion over the past 2 years could pay for 12 years of consumer spending at the 2022 level.
- The number of home service pros is 6.1 million people working for approximately 2.5 million businesses.
- The total housing stock is continuing to rise to a total of 143 million housing units, including 93.5 million single family homes, which remain Americans most popular way to live. The average age of the housing stock continues to rise, to an average of 47 years.
- The ratio of the prior year’s home equity to the current market size is 38:1, a 6% increase from 2021, despite the larger TAM this year, reflecting the role of large home equity gains in fueling home service spending.
- The population now has an average age of 39, and the next decade will be marked by Millennials continuing to form families and age into their 40s while Boomers enter their 80s with many opting to age-in-place.
- Home equity gains coupled with rising interest rates will increase the competitive position of remodeling vs. moving, as the total cost of buying a new home has nearly doubled since 2020.