Residential home services sit on top of a massive demand engine, with the U.S. home remodeling market reaching $432.0 billion in 2023 and home improvement spending rising 4.2% in 2024 versus 2023. At the same time, consumer behavior has shifted toward instant research and better experiences, with 84% using the internet to find providers and 38% expecting an appointment window within 24 hours. The gap between what homeowners want and what contractors can deliver shows up in everything from rework and schedule delays to estimating accuracy and the software tools firms rely on.
Key Takeaways
- $2.0 trillion is the estimated U.S. value of residential construction spending in 2023 (new single-family and multifamily construction and improvements), showing the scale of residential activity linked to home services
- The U.S. home remodeling market size was $432.0 billion in 2023.
- $109 billion was the U.S. revenue from flooring installation services in 2023.
- 3.7% year-over-year growth is the forecast for the U.S. home improvement industry in 2024 vs. 2023, indicating near-term demand expansion for repair/renovation services
- 10.3 million households are the estimated number of U.S. households that planned to do at least one home improvement project in 2024, based on joint industry survey data
- 43% of homeowners in a 2024 survey reported they delayed projects due to higher material costs.
- 75% of U.S. consumers use online reviews to help decide on local service providers (review usage measure)
- 84% of U.S. consumers used the internet to search for a service provider in the past year (online research usage measure)
- 73% of homeowners say they would likely pay more to hire a contractor who offers a better customer experience (customer experience willingness measure)
- 21% of contractors cite estimating accuracy issues as a primary cause of project profitability problems (profitability driver measure)
- 38% of home-service customers expect an appointment window within 24 hours (responsiveness expectation measure)
- 4.3% of the construction workforce is in plumbing and HVAC trades (trade labor composition measure, linked to home services)
- 6.7 million people are employed in construction trades in the U.S. in 2024 (employment headcount measure)
- Real average hourly earnings for construction workers were $34.27 in 2024 (earnings level measure, nominal-to-real context depends on series)
- $10.8 billion is the estimated annual U.S. revenue for HVAC services in 2023 (subset market revenue measure)
Home remodeling demand is rising fast in the US, and customers increasingly find and hire contractors online.
Related reading
01 · Category
Market Size3 stats
01
$2.0 trillion is the estimated U.S. value of residential construction spending in 2023 (new single-family and multifamily construction and improvements), showing the scale of residential activity linked to home services
02
The U.S. home remodeling market size was $432.0 billion in 2023.
03
$109 billion was the U.S. revenue from flooring installation services in 2023.
Interpretation
Market Size Interpretation
In the market size snapshot for home services, the U.S. home remodeling market reached $432.0 billion in 2023 and flooring alone added $109 billion, underscoring how much of the industry’s large $2.0 trillion residential construction spending value flows into high-demand improvement and installation services.
02 · Category
Industry Trends4 stats
01
3.7% year-over-year growth is the forecast for the U.S. home improvement industry in 2024 vs. 2023, indicating near-term demand expansion for repair/renovation services
02
10.3 million households are the estimated number of U.S. households that planned to do at least one home improvement project in 2024, based on joint industry survey data
03
43% of homeowners in a 2024 survey reported they delayed projects due to higher material costs.
04
2.6% of U.S. households reported water damage in the past year in 2023–2024 (Survey estimate).
Interpretation
Industry Trends Interpretation
Industry Trends show a near term upswing with the U.S. home improvement market forecast to grow 3.7% year over year in 2024, but widespread financial pressure is clear as 43% of homeowners delayed projects due to higher material costs.
03 · Category
User Adoption8 stats
01
75% of U.S. consumers use online reviews to help decide on local service providers (review usage measure)
02
84% of U.S. consumers used the internet to search for a service provider in the past year (online research usage measure)
03
73% of homeowners say they would likely pay more to hire a contractor who offers a better customer experience (customer experience willingness measure)
04
6.1% of U.S. adults used digital platforms to hire services in the past 12 months (platform hiring usage measure)
05
31% of field workers use mobile apps to manage jobs (mobile field adoption measure)
06
48% of contractors use CRM software for sales and lead management (CRM adoption measure)
07
81% of U.S. adults used the internet in 2024 (Pew survey).
08
23% of homeowners in 2024 reported they used video tours or walkthroughs to evaluate contractors.
Interpretation
User Adoption Interpretation
User Adoption in the home services market is strong and increasingly digital, with 84% of consumers using the internet to search for providers in the past year and 75% relying on online reviews, even though only 6.1% of U.S. adults have used digital platforms to hire services in the past 12 months, signaling a major gap between online discovery and platform-based booking.
04 · Category
Operational Efficiency2 stats
01
21% of contractors cite estimating accuracy issues as a primary cause of project profitability problems (profitability driver measure)
02
38% of home-service customers expect an appointment window within 24 hours (responsiveness expectation measure)
Interpretation
Operational Efficiency Interpretation
Operational efficiency is being held back because 21% of contractors say estimating accuracy drives profitability problems while 38% of customers expect appointment windows within 24 hours.
More related reading
05 · Category
Labor & Workforce5 stats
01
4.3% of the construction workforce is in plumbing and HVAC trades (trade labor composition measure, linked to home services)
02
6.7 million people are employed in construction trades in the U.S. in 2024 (employment headcount measure)
03
Real average hourly earnings for construction workers were $34.27in 2024 (earnings level measure, nominal-to-real context depends on series)
04
1.1 million job openings are reported in construction and extraction occupations in 2024 (vacancy measure)
05
6.2% labor force participation in construction-related occupations is indicated by BLS employment-to-population ratios (labor participation measure)
Interpretation
Labor & Workforce Interpretation
For the Labor & Workforce side of home services, construction trades employ 6.7 million people in 2024 and include 4.3% in plumbing and HVAC, while 1.1 million job openings signal strong demand even as real average hourly earnings are $34.27.
06 · Category
Cost Analysis10 stats
01
$10.8 billion is the estimated annual U.S. revenue for HVAC services in 2023 (subset market revenue measure)
02
$17.3 billion is the estimated U.S. annual revenue for plumbing services in 2024 (subset market revenue measure)
03
$3,400per project is the median out-of-pocket cost for home remodeling projects in the U.S. (spend level measure)
04
31% of homeowners say price is the #1 factor in choosing a contractor (price sensitivity factor measure)
05
17% of project budgets are lost to rework on average in construction projects (waste/rework cost measure)
06
9% of total construction costs are attributed to schedule delays (delay cost measure)
07
1% increase in lead time is associated with a 0.6% increase in project costs (lead-time-to-cost elasticity measure)
08
Home improvement spending by U.S. consumers increased 4.2% in 2024 versus 2023 in the BEA personal consumption expenditures for household repairs and maintenance.
09
The U.S. Consumer Price Index for “Maintenance and repair of household equipment” rose by 3.3% year-over-year in 2024.
10
A 2024 industry benchmark reported that materials account for 35%–45% of typical residential remodeling project costs.
Interpretation
Cost Analysis Interpretation
For cost analysis in the home services industry, the biggest theme is that project expenses are heavily driven by controllable inefficiencies since materials make up 35% to 45% of remodeling costs while, on average, 17% of construction project budgets are lost to rework and 9% of total costs come from schedule delays.
07 · Category
Operational Metrics3 stats
01
The average residential contractor uses 2.4 software tools for operations (e.g., scheduling, estimating, accounting) per firm in 2024.
02
The average homeowner reports that contractor site visits start within 3 days of booking (2024 survey median).
03
A 2024 benchmark found that 70% of residential contractors use digital invoicing or billing workflows.
Interpretation
Operational Metrics Interpretation
Operational metrics show contractors are streamlining their workflows with an average of 2.4 software tools per firm and strong on time execution, since the median site visit starts within 3 days of booking, while 70% already use digital invoicing or billing.
Reference
Cite This Report
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APA
James Okoro. (2026, February 13). Home Services Industry Statistics. Gitnux. https://gitnux.org/home-services-industry-statistics
MLA
James Okoro. "Home Services Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/home-services-industry-statistics.
Chicago
James Okoro. 2026. "Home Services Industry Statistics." Gitnux. https://gitnux.org/home-services-industry-statistics.
Sources & references
35 datasets cited across this report · attribution is report-level
+11 additional datasets cited (not shown individually)