From Roof Repairs to Smart Homes: The Residential Services Revolution Sweeping the U.S.
The U.S. home services market exhibits a distinct dominance of the residential sector, which accounts for nearly 80% of the total industry revenue. This leadership underscores the increasing reliance of homeowners on professional service providers for their maintenance, repair, and modernization needs. A significant factor driving this trend is the aging housing infrastructure, with over 40% of homes being more than fifty years old, resulting in a sustained demand for plumbing, electrical, HVAC, and renovation services. Homeowners are increasingly opting for professional and tech-enabled service platforms, appreciating the convenience, transparency, and reliability they offer. The rise of digital booking systems and mobile applications has transformed the consumer experience, enabling residents to access verified professionals for same-day or on-demand services. Furthermore, the growth of smart home devices has spurred upgrades and installations that necessitate technical expertise, contributing to increased spending on automation, security, and energy-efficient systems.
The residential segment also capitalizes on behavioral and lifestyle changes, including the prevalence of dual-income households and limited time for self-maintenance tasks. These shifts have boosted the popularity of subscription-based maintenance models and bundled service packages. Moreover, lifestyle changes prompted by the pandemic have heightened the focus on cleanliness, indoor air quality, and safety, leading to a surge in demand for home cleaning, pest control, and sanitization services. The rise of remote work has further accentuated the emphasis on home comfort and aesthetic enhancements, driving interest in interior design, carpentry, and painting services. Increasing disposable incomes in both suburban and urban areas have empowered homeowners to invest in higher-value remodeling and landscaping projects. As a result, the residential segment continues to attract both established companies and new entrants that leverage digital platforms to offer localized, flexible, and competitively priced services.
Conversely, the commercial segment comprising small offices, retail shops, restaurants, and clinics captures a smaller, yet progressively expanding portion of the U.S. home services market. This segment benefits from business owners' increasing inclination to outsource non-core operational tasks such as facility cleaning, maintenance, and pest management. Health, safety, and compliance standards significantly influence the commercial sector, particularly in food service, healthcare, and retail, where sanitation and operational efficiency are paramount. Small businesses often depend on specialized service contracts for HVAC maintenance, plumbing, electrical systems, and landscaping to ensure smooth operations and adherence to building regulations.
A pivotal growth driver in the commercial segment is the trend toward preventive maintenance. Businesses are increasingly investing in regular inspections and upkeep to prevent unexpected breakdowns and costly downtime. Service providers have responded by designing business-friendly packages that offer 24/7 emergency response, scheduled maintenance visits, and tailored cleaning cycles, making professional maintenance services more affordable and predictable for small business owners. Additionally, the adoption of sustainable and eco-friendly maintenance solutions is gaining traction as commercial establishments aim to comply with green building standards and attain environmental certifications.
Digitization has been instrumental in enabling both segments, especially in the commercial sphere, where scheduling, monitoring, and service quality are managed through online dashboards. Platform-based aggregators such as Angi Inc., Thumbtack, and Porch have broadened their offerings to serve both homeowners and small business owners, providing flexible packages that encompass multiple service categories. The integration of digital payment solutions, real-time feedback systems, and subscription billing models has enhanced client retention and trust.
While the residential sector remains the cornerstone of the U.S. home services market, the commercial segment is anticipated to gain traction as more local businesses opt for professional outsourcing to maintain operational continuity. Factors such as urban business growth, workforce expansion, and heightened hygiene awareness in public-facing sectors will further bolster the adoption of commercial services. Collectively, these trends suggest a balanced ecosystem where both residential and commercial clients drive steady, long-term market growth, underpinned by digital transformation, service innovation, and an increasing emphasis on quality and reliability.
