Angi [1] has released “The Economy of Everything Home Report [2],” an analysis of the total addressable market (TAM) for home services in the U.S. that estimates a TAM of $595 billion and a total of 728.3 million household projects for 2021.
Compiled by Angi's Chief Economist Mischa Fisher [3], the report [4] forecasts further growth in the market due to supply shortages, rising input prices, low interest rates, home equity gains, demographic trends, and digital migration.
The TAM of $595 billion can be broken down into three sectors:
- Home improvement market: $376.9 billion and 148.5 million projects
- Home maintenance market: $157.7 billion and 500.3 million projects
- Home emergency repair market: $60.6 billion and 79.5 million projects
"As a leading digital consumer brand in caring for our homes, Angi is in a unique position to provide the most comprehensive analysis of the size of the market, where it is strongest, the people who compose it, and what we can expect in the future," said Oisin Hanrahan [5], CEO of Angi. "2020 was a transformative year for the home as people's homes became more important due to the COVID-19 pandemic, and we saw homeowners' spending follow suit."
A key factor in determining the TAM is the estimated 5.8 million skilled tradespeople working in home services, a labor category that is difficult to measure. The TAM takes into account the makeup of household structures across the country and the people living in them.
“The Economy of Everything Home Report [4]” estimates:
- There is a total of 141.5 million housing units in the U.S.
- There are 331 million people composing 128 million households across the U.S., for an average of 2.5 people per household.
- The median age for the population is 38, with large cohorts of millennials and boomers currently entering the stages of life focused on homebuying and aging in place, respectively.
- Nearly 40% of America's housing stock is more than 50-years-old.
"141.5 million housing units is a staggering amount of construction and physical material that undergoes constant wear and tear from both occupants and the environment," said Fisher. "How old that space is, how it is used and who lives there are all major drivers in the need for home services. With baby boomers aging in place and millennials taking on homeownership, we're likely to see the demand for home services continue to rise in the years to come."
Click here to view Angi’s “The Economy of Everything Home Report [4].”