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Consumer Spend - Home Service SMBs
Although we were unable to find data on consumer spending on home services due to SMBs specifically, we estimated that the amount spent is about $81 billion annually. In general, according to AHS analysis, US home-owners spend around $150 billion annually on home improvements and repairs. Below, you will find more details about our estimate and additional details on the home service industry in general.
METHODOLOGY
AHS analysis which stated that US home-owners spend $150 billion didn't provide data on SMB spend separately and after an extensive search through industry and media reports on the industry, we were unable to find any data on the amount spent by on home service SMBs or the percentage of the total spending that goes to home service SMBs.
As expected, SMBs make up the majority of businesses in Home Services, with 98.9% having less than 100 employees. This is similar to the general US economy where 99.7% of businesses are SMBs. However, although SMBs account for 99.7% of businesses in the US, they only account for 54% of the total sales. If we assume that this percentage holds true in the Home Service sector also, we would have that consumer spend $81 billion (54% * $150 billion) on home services SMBs (Small-midsize businesses) in the US market.
additional details
American Housing Survey (AHS) conducted research on home services in the US market, particularly home services that include Home service businesses include heating and air-conditioning, handyman, plumbing, electrical, carpet cleaning, appliances, audio and TV, concrete and masonry. While this report has been conducted in 2015, it hasn't been repeated since, which is why we are including it in our research. We will later provide more recent data.
According to AHS analysis, US home-owners spend around $150 billion annually on home improvements and repairs. That is a 34% decline when compared with 2007 expenditure ($227 billion), and 19% less compared to 2009 ($186 billion). This report is especially valuable because it provides data split into categories of services. US home-owners spent the following amounts for small home business services:
The True Cost Report provides 2017 data on average expenditures on house services. According to the report, there has been an increase of almost 60% when it comes to the number of home projects the owners have done in 2017 compared to 2016. This amounts to a 7% increase in total nationwide expenditures when it comes to overall home improvements. In 2017, an average household spent $5,157 on home improvement projects. On top of that, households in the West and Northeast are spending more money on house services than households in the South and Midwest.
Another less conclusive report from 2016 conducted by Harvard University shows that Americans spent a total of $321 billion on renovations in 2016. This includes big remodels as well as small repairs. However, it does show an above average increase of almost 8% expected in 2017 when compared to 2016 numbers as more and more people are putting their homes on the market, which is asking for them to repair smaller glitches.
Additionally, we were able to find statistics for the heating and air-conditioning businesses. The overall industry has a revenue of $87 billion and a yearly growth rate of 2.6%. The industry employs 474,542 and there are currently 109,599 businesses in operation in the US.
CONCLUSION
To wrap up, US home-owners spend around $150 billion annually on home improvements and repairs. However, we estimated that the amount spent on home services SMBs (Small-midsize businesses) in the US market is about $81 billion.