Total Addressable Market for Home Services Grows to $657B According to New Report from Angi
- Report estimates total of 665 million household projects for 2022, Supported by approximately 6.1 Million Home Service Pros
- The growth rate of 10.9% from 2021 is double the 5.7% increase in real GDP the economy experienced
- Market Growth Rate and Total Projects Represents a Return to More Normal Growth and an Exit from Pandemic Era Surge Demand
“2022 is a transitional year for the home service market,” said
Key insights from the report include:
- The home services total addressable market stands at
- Home improvement: $475B and 152.5 million projects
- Home maintenance: $105.9B and 419.7 million projects
- Home emergency repair: $76.4B and 93.5 million projects
- The size of the market in total project volume is 665.6 million projects completed annually, with year-over-year increases in both improvement projects and emergency projects
- There are over 6 million home service pros 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
- Home equity gains coupled with rising interest rates will increase the competitive position of remodeling versus moving, as the total cost of buying a new home has nearly doubled since 2020
- The growth rate of 10.9% from 2021 is double the 5.7% increase in real GDP the economy as a whole experienced, showing that home service spending remains proportionally strong
“This is one of the most dynamic times in the history of the home service industry, and while 2022 is a transition year to a more normalized market, what counts as ‘normal’ remains unprecedented,” said Fisher. “Right now, there are a lot of competing forces, but we think these forces will end up as tailwinds for home services. For example, rising interest rates hurt consumer spending and home sales, but higher interest rates also anchor people into their existing homes and disincentivize moving, which in turn boosts remodeling.”
This is Angi’s third annual Economy of Everything Home Report. This report’s TAM estimates are built around
Angi Research’s market model is built by modeling the individual spending patterns of every household in
Specifically, there are several areas where the data collection methods between the ACS and Angi’s research team differ, some of the variables are captured categorically in one survey and cardinally in another requiring conversions that may distort some results; furthermore, differing statistical modeling techniques can produce different estimates of slope coefficients or different findings of significant or insignificant predictor variables.
While our research team views the results contained in this report as best current estimates, they are of course subject to upward or downward revision, change and continued refinement in the future.
Source: Angi Inc.