2024 Harris Williams Home Services Survey

Latest Consumer Data Reinforces Resilience 

Long known for growth, stability, and opportunities to build market-leading platforms, the home services subsector continues to see strong consumer demand and resilient investor interest. The third annual Harris Williams Home Services Survey reinforces the subsector’s strength, driven by long-term consumer behavior shifts that tend to weather economic uncertainty and consumer headwinds.  

“The latest data highlights the lasting attractiveness and stability of this sector, and the growth opportunities it presents to investors," says Brent Spiller, a managing director and co-group head in the Consumer Group. 

Indeed, almost 90% of consumers are as likely or more likely to hire a home services provider than they were two or three years ago while only about 10% are more likely to perform these services themselves (Figure 1). 

Figure 1: Increasing Likeliness to Hire Providers 

Likewise, more than 80% of consumers are maintaining or increasing spending on home services compared to two or three years ago (Figure 2).

Figure 2: Most Consumers Spending the Same or More 

“A long-term shift is underway toward more outsourcing of home services,” says Spiller. “Drivers include millennial home ownership, less homeowner free time and DIY interest, and more discretionary income.” 

Spiller says younger homeowners are bringing new expectations and preferences that are likely to sustain residential services growth, including a growing preference for outsourcing home services and less sensitivity to price increases. As shown in Figure 3, roughly 60% of millennial and Gen-Z respondents noted their preference for hiring home services providers has continued to increase in recent years. In addition, those aged 55+ show a steady preference for outsourcing, with a growing number favoring the option over DIY. 

Figure 3: Millennial and Gen-Z Preference for Hiring Professional

These trends show signs of strong recession resilience, says Zach Ledwith, a director: “The vast majority of consumers plan to increase or maintain their spending on home services, even in a recession. The data also shows that home services demand remains steady through uncertain macro environments, political elections, and interest rate policy changes.” 

Playing to Win 

Beyond supporting long-term demand, these evolving customer preferences create opportunities for sophisticated players to win. Specifically, referrals and digital marketing channels remain key customer acquisition channels, but direct advertising (TV and direct mail) is regaining momentum as digital channels have become more crowded and expensive. 

“Word of mouth, internet, and social media remain the top discovery channels, but direct advertising, branded vehicles, and billboards have become more relevant for consumers in 2024,” says Ledwith. “That’s likely due to rising digital customer acquisition costs and consumer fatigue of online ads.” 

At the same time, Spiller and Ledwith say consumers also value modern, tech-enabled ways of interacting with home services companies, providing an opportunity for professionalized platforms to differentiate themselves. In fact, 62% of consumers say it’s extremely or very important that service providers use the latest tech for booking, billing, and project management (Figure 4). 

Figure 4: Customer-Facing Technology Is a Valuable Differentiator

“The survey shows that it’s important to combine proven marketing approaches with newer tactics and modern tech,” says Ledwith.  

Resilience Reaffirmed 

“Multiple years of consumer data reinforces the inherent resilience of the home services subsector,” concludes Spiller. “Consumers are steadily shifting toward the do-it-for-me model, and they’re looking for sophisticated service providers that are easy to find and work with.” 

Going forward, home services companies able to provide the modern experience consumers crave while using proven marketing approaches are poised to win share and lead the growth and innovation M&A investors so highly value.   

Contact our senior professionals to request the full report, including more details on the insights above as well as proprietary data on which services are most in demand and recession-resilient, the role of financing in the purchase decision, and the optimal balance between national brand recognition and local presence.