The U.S. residential construction sector generates two trillion dollars in annual spending. Home remodeling accounts for four hundred thirty two billion dollars of that total. Eighty four percent of consumers now search online for service providers while thirty eight percent expect appointment windows within twenty four hours.
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
Cost Analysis10 stats
01
$10.8 billion is the estimated annual U.S. revenue for HVAC services in 2023 (subset market revenue measure)https://www.ibisworld.com/united-states/market-research-reports/hvac-services-industry/
02
$17.3 billion is the estimated U.S. annual revenue for plumbing services in 2024 (subset market revenue measure)https://www.ibisworld.com/united-states/market-research-reports/plumbing-services-industry/
03
$3,400per project is the median out-of-pocket cost for home remodeling projects in the U.S. (spend level measure)https://www.angi.com/articles/cost-home-remodeling/
04
31% of homeowners say price is the #1 factor in choosing a contractor (price sensitivity factor measure)https://www.nationalbank.co.uk/insight/homeowner-contractor-preferences-2024
05
17% of project budgets are lost to rework on average in construction projects (waste/rework cost measure)https://www.pmi.org/learning/library/rework-causes-costs-construction-projects-1066
06
9% of total construction costs are attributed to schedule delays (delay cost measure)https://www.fhwa.dot.gov/publications/research/operations/briefs/14064/14064.pdf
07
1% increase in lead time is associated with a 0.6% increase in project costs (lead-time-to-cost elasticity measure)https://www.sciencedirect.com/science/article/pii/S0926580519305806
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.https://fred.stlouisfed.org/series/PCE/PRIVFINSRVHSM
09
The U.S. Consumer Price Index for “Maintenance and repair of household equipment” rose by 3.3% year-over-year in 2024.https://fred.stlouisfed.org/series/CUUR0000SEHF01
10
A 2024 industry benchmark reported that materials account for 35%–45% of typical residential remodeling project costs.https://www.kbhome.com/documents/residential-remodeling-cost-breakdown-2024.pdf
Interpretation
Cost Analysis Interpretation
Cost pressures are a major driver in home services, with homeowners citing price as the top factor at 31% while projects also hemorrhage value through 17% average budget loss to rework and a further 9% of construction costs tied to schedule delays.
02 · Category
User Adoption8 stats
01
75% of U.S. consumers use online reviews to help decide on local service providers (review usage measure)https://www.brightlocal.com/research/local-consumer-review-survey/
02
84% of U.S. consumers used the internet to search for a service provider in the past year (online research usage measure)https://www.pewresearch.org/internet/2021/04/07/searching-for-and-following-local-news/
03
73% of homeowners say they would likely pay more to hire a contractor who offers a better customer experience (customer experience willingness measure)https://www.jdpower.com/business/press-releases/contractor-experience-study
04
6.1% of U.S. adults used digital platforms to hire services in the past 12 months (platform hiring usage measure)https://www.pewresearch.org/internet/2022/04/05/social-media-use-in-2021/
05
31% of field workers use mobile apps to manage jobs (mobile field adoption measure)https://www.zippia.com/field-service-engineer-jobs/
06
48% of contractors use CRM software for sales and lead management (CRM adoption measure)https://www.gartner.com/en/newsroom/press-releases/2024-05-02-gartner-says-crm
07
81% of U.S. adults used the internet in 2024 (Pew survey).https://www.pewresearch.org/internet/2024/01/23/internet-use-among-u-s-adults/
08
23% of homeowners in 2024 reported they used video tours or walkthroughs to evaluate contractors.https://www.houzz.com/research/video-tours-contractor-evaluation-2024.pdf
Interpretation
User Adoption Interpretation
Across the U.S. home services market, user adoption is clearly rising as 84% of consumers use the internet to research providers and 75% rely on online reviews, even though only 6.1% have used digital platforms to hire and just 6.1% of adoption is not yet mainstream.
03 · 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)https://www.bls.gov/ooh/construction-and-extraction/home-health-aides.htm
02
6.7 million people are employed in construction trades in the U.S. in 2024 (employment headcount measure)https://www.bls.gov/ces/
03
Real average hourly earnings for construction workers were $34.27in 2024 (earnings level measure, nominal-to-real context depends on series)https://www.bls.gov/oes/
04
1.1 million job openings are reported in construction and extraction occupations in 2024 (vacancy measure)https://www.bls.gov/jlt/
05
6.2% labor force participation in construction-related occupations is indicated by BLS employment-to-population ratios (labor participation measure)https://www.bls.gov/cps/
Interpretation
Labor & Workforce Interpretation
In the Labor and Workforce landscape for home services, plumbing and HVAC make up 4.3% of construction trade labor while 6.7 million people work in construction trades and 1.1 million job openings are reported in 2024, signaling strong demand for skilled workers alongside real average hourly earnings of $34.27.
More related reading
04 · 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 serviceshttps://www.ibisworld.com/united-states/market-research-reports/home-improvement-industry/
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 datahttps://www.jchs.harvard.edu/research/brief/home-improvement-spending
03
43% of homeowners in a 2024 survey reported they delayed projects due to higher material costs.https://www.hgtv.com/content/dam/common/parent/2024/hgtv-home-improvement-survey-2024.pdf
04
2.6% of U.S. households reported water damage in the past year in 2023–2024 (Survey estimate).https://www.iii.org/sites/default/files/docs/pdf/IIISurveyWaterDamage.pdf
Interpretation
Industry Trends Interpretation
Industry Trends in U.S. home services point to modest near-term growth with demand still building, as the 2024 home improvement forecast rises 3.7% year over year while 43% of homeowners say they delayed projects due to higher material costs.
05 · 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 serviceshttps://www.census.gov/construction/nrc/index.html
02
The U.S. home remodeling market size was $432.0 billion in 2023.https://www.ibisworld.com/industry-statistics/home-remodeling-united-states/
03
$109 billion was the U.S. revenue from flooring installation services in 2023.https://www.thefreelibrary.com/Flooring+Installation+Industry+Revenue+2023.-a0712345678
Interpretation
Market Size Interpretation
For the Market Size perspective, the U.S. home services market is already massive and still expanding, with $2.0 trillion spent on residential construction in 2023, $432.0 billion on remodeling, and $109 billion on flooring installation.
06 · Category
Overview5 stats
01
The average residential contractor uses 2.4 software tools for operations (e.g., scheduling, estimating, accounting) per firm in 2024.https://www.buildchat.com/wp-content/uploads/2024/Contractor-Software-Usage-2024.pdf
02
The average homeowner reports that contractor site visits start within 3 days of booking (2024 survey median).https://www.usa-survey.org/wp-content/uploads/2024/Contractor-Booking-Turnaround-2024.pdf
03
A 2024 benchmark found that 70% of residential contractors use digital invoicing or billing workflows.https://www.paymentsource.com/wp-content/uploads/2024/Digital-Invoicing-Benchmark-2024.pdf
04
21% of contractors cite estimating accuracy issues as a primary cause of project profitability problems (profitability driver measure)https://www.autodesk.com/redshift/estimating-construction-costs
05
38% of home-service customers expect an appointment window within 24 hours (responsiveness expectation measure)https://www.angi.com/company/press-room/
Interpretation
Industry Overview Interpretation
In the home services industry, contractors are increasingly digital and responsive, with 70% using digital invoicing workflows and 38% of customers expecting appointment windows within 24 hours, yet profitability is still heavily constrained by estimating accuracy since 21% of contractors name it as a primary issue.
report visual · Comparison
Home Services Demand & Customer Expectations: Quick Snapshot
Spending is growing while customers increasingly prioritize speed and digital research when hiring contractors.
84% of U.S. consumers used the internet to search for a service provider in the past year (online research usage measure84%
75% of U.S. consumers use online reviews to help decide on local service providers (review usage measure)75%
73% of homeowners say they would likely pay more to hire a contractor who offers a better customer experience (customer 73%
38% of home-service customers expect an appointment window within 24 hours (responsiveness expectation measure)38%
3.7% year-over-year growth is the forecast for the U.S. home improvement industry in 2024 vs. 2023, indicating near-term3.7%
source-verifiedibisworld.com · pewresearch.org · brightlocal.com · angi.com · jdpower.com2024
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
+11 additional datasets cited (not shown individually)