Home services have always been essential in everyday life, with most people connecting with brands when they need to, but the worldwide impact of COVID-19 has caused a major shift in the marketplace. As the pandemic continues, more people are staying home and prioritizing their biggest assets — their property and home, even going so far as to channel vacation money into long-ignored home improvements.
Aside from a brief, initial drop, home services have remained remarkably stable, along with Grocery Stores and General Merchandise Stores during this ongoing period of economic uncertainty. Consumer spending on home services has exceeded most other markets during the second half of 2020. In June, spending peaked at 17%, had consistent growth in the months to follow, and a record high 23% growth in December. Consumers will continue to undertake home improvement projects at a high rate in the years to come, with experts predicting 53% growth between 2020 and 2024.
While the immediate demand may dip after the pandemic, studies say the boost to your business can continue. Here's what you need to know about the high-demand services during Covid and what to expect in the home services industry in 2021.
How Home Services Adapted During the Pandemic
Demand for home services increased substantially during the pandemic, causing many unexpected changes to follow suit. Of these changes, there has been an increase in call volume, rising costs of keywords in PPC ads, and staff increases to meet the higher work demand. Understandably, this also led to an increase in competition.
In response to the rising competition, businesses have had to invest in more robust marketing efforts to create a seamless, omnichannel experience to guide customers through the sales funnel. Because the market is saturated, you must stand out, and the best way to do so is to give customers what they want with an omnichannel experience.
Home Services That Continue to Grow
Home services can come in various shapes and sizes — all focused on improving residential homes and conducting home renovations. The industries span from repair and maintenance, home improvement, installations, plumbing, landscaping, and more.
As a whole, the market will grow immensely in the next couple of years, growing from $105.55 billion in 2018 to $219.07 billion in 2026 (at a compound annual growth rate of 35.8%).
Individually, these four following Home Service businesses are seeing incredible growth.
1. Concrete Installation
There are various reasons homeowners are increasing their investments in concrete installation. Not only are more people becoming more sustainably aware (and concrete has the lowest carbon footprint for a structure), but it's durable, versatile, and people can mold it into whatever they have in mind. The concrete industry already saw a 3.4% increase in market size per year between 2016 and 2021, and it expects to see another 3.4% increase in 2021. What's more, the industry is growing at a faster rate than the U.S. economy.
2. Landscaping and Design
With more people investing in their homes and property, landscape and design have also seen growth. More people are taking the time to replenish and nourish their lawns and enhance their outdoor living areas now that they're spending more time at home than out on vacation. The Landscaping Services industry's market size, based on revenue, is $114.6bn in 2021, continuing its 5.1% yearly growth on average between 2016 and 2021.
3. Flooring
Flooring gained momentum as many homeowners are working on the aesthetic appeal of their homes with the extra time and money. It enhances the look of the room, adds value, and is often long-lasting and cost-effective. The industry was valued at$388.24 billion in 2020 and will reach $409.03 billion in 2021. It has an expected 6.1% annual growth rate from 2021 to 2028 to reach $621.54 billion by 2028.
4. Plumbing and HVAC
Plumbing and HVAC are growing as more people invest in maintaining their home's structural components. Global HVAC systems market will grow at a compound annual growth rate of 5.9% from 2021 to 2028 to reach $197.50 billion by 2028. Furthermore, the Plumbers industry in the U.S. has grown 3.0% per year on average between 2016 and 2021 and will further increase by 3.7% in 2021.
People Are Spending More Time at Home: Take Advantage!
The pandemic has slowed things down for many people, allowing them to spend more time at home and better prioritize. People have been more readily open and available to invest in their homes and make improvements for their households. Although the steady increase in sales and demand has brought more brands to compete with, it has also brought more opportunities for your company. With the right marketing efforts that fit you and your target audience, your home services business can continue to see desirable numbers even after the pandemic.
