Why the Home Services Industry is So Hot Right Now

The home services market has been thriving over the last several years and is currently worth more than $500 billion in the United States. 

But why is the market seeing such impressive growth? Here are a few reasons. 

1. Expansive Customer Pool

The pool of customers who need home services is rapidly expanding. There are 78 million Baby Boomers who are living longer, aging in place, and outsourcing home-related activities due to physical limitations such as lawn care, home renovation projects and cleaning.

On the other hand, there are over 72 million Millennials in the U.S., and as they age into their thirties and forties, many are buying their first homes, according to Rocket Mortgage. Data from the U.S. Census Bureau also show that the rate of millennial homeownership increased by nearly 5% from 2019 – 2020.

Notably, Millennials are more willing to spend money on home services because it gives them time back to do other things that they enjoy.

2. Limited Competition

Most of the competition in the home services space is made up of mom-and-pop companies. The lack of sophistication and resources (particularly in the digital marketing space) in the sector makes it easier for franchises to stand out and gain market share with their brand consistency and structure that homeowners often appreciate. By comparison, it’s harder for small independent businesses to compete and stay afloat. 

3. Amazon and Offshore Proof

Unfortunately, for many retail and product-based industries, Amazon and its competitors have taken over a large market share due to their convenience and lower price offerings. Home services, on the other hand, can’t be ordered online or dropped off on a doorstep. Because the service needs to be delivered and performed by local teams or employees, the industry is essentially “Amazon-proof” and not going anywhere any time soon. 

Similarly, home services cannot be done offshore for a lower price because it’s simply not feasible. They have to be performed onsite and in person.

4. Recession and Pandemic Resilient

The home services industry proved how essential it was during the recent pandemic when businesses boomed despite tremendous uncertainty and economic difficulties. In fact, consumer spending in the home services category started growing faster than pre-pandemic levels by the end of 2020, according to a report from Jobber. In many cases, home service businesses experienced back-to-back record-breaking years during the pandemic.

5. Growth Opportunities

The already massive industry is getting bigger by the day. Smart investors are seeing the consumer growth in home formation and taking advantage of lower-cost, mobile, recurring revenue-based opportunities.

By 2026, the home services industry is expected to grow to more than $1,219 billion, so there is plenty of room for home services brands to flourish in the coming years. A franchise such as Happinest is perfectly positioned to capitalize on this market, especially considering its various brand offerings.’

Happinest Brands, parent franchisor of Lawn Doctor, Mosquito Hunters and ecomaids has been benefiting from this growth and has seen tremendous success this year.

Interested in learning more? Happinest is at the forefront of home service franchising with hundreds of active franchises throughout the U.S.

The startup costs for a Lawn Doctor franchise range from $116,465-$141,815. To learn more about franchising with Lawn Doctor, visit https://lawndoctorfranchise.com/

The total investment necessary to open a Mosquito Hunters franchise ranges from $89,187-$116,187. For more information on franchising opportunities with Mosquito Hunters, visit https://mosquitohuntersfranchise.com

The total investment necessary to open an ecomaids franchise ranges from $110,990-$136,379. For more information on franchising opportunities with ecomaids, visit https://ecomaidsfranchise.com/