The home services industry continues to evolve rapidly in 2025, and understanding how customers find contractors — and how to reach them effectively — is more important than ever. Whether you run a painting company, HVAC service, roofing business, or concrete crew, the landscape for growth has changed. Below, we break down key trends, customer behaviors, marketing channels, and cost comparisons to help you stay competitive and profitable this year and beyond.
Home improvement spending in the U.S. reached over $527 billion in 2023 and is projected to exceed $545 billion in 2024, with continued growth through 2030. Residential contractors in specific trades saw the following market sizes in 2024:
$30B – driven by replacements and efficiency upgrades
$165B – steady demand, essential services
$75B – aging homes and storm damage keep demand stable
$77B – especially strong in southern/warm-weather states
$44B – highly fragmented market, mostly residential
Even as interest rates and inflation put pressure on new home purchases, homeowners are choosing to renovate and maintain instead of move. That means more demand for contractors — if they can be found.