The home services market has grown 17% over the last year, according to Angi’s Economy of Everything Home report. There’s a combination of factors responsible for the boost, including the labor shortage and the rising costs of construction and remodeling projects. But demographic shifts give longer-term insight into who is spending the most on home projects – and which pools of potential customers have the most growth potential in the years to come.
1. Millennials are becoming homeowners for the first time.
Age dramatically impacts who spends the most on home services, and millennials are emerging as the largest market. As the majority of millennials enter their late 20s and early 30s, they’re buying their first homes. States with younger populations – including Utah, Texas and Georgia – stand to see growth in remodeling, maintenance and repair projects as millennials renovate their homes to accommodate growing families.
2. Booomers are aging in place.
While the baby boomer generation is reaching a new stage in life where they need fewer homes, this large cohort is focused on aging-in-place renovations. Additionally, homeowners who fall between millennials and boomers are in the moving-up market. No longer first-time home buyers, this group has had time to build wealth and can take on larger projects and multiple homes. States with older average populations, including Florida, New Hampshire and Maine, are likely to see growth in these areas.
3. Housing size and stock impact spending.
While a homeowner’s age affects growth, the size and age of a house does as well. Everything from income to professional and cultural preferences can impact the number of people in a household, and more people means more stress on the home. Additionally, the average age of a single-family home in the U.S. is 40 years old, and there isn’t enough new construction to bring the average down. States including California, Texas and Hawaii have the largest households, and can expect to see growth in wear-and-tear maintenance and repairs.
See more about the factors influencing home service spending and growth in Angi’s Economy of Everything Home report.