Total Addressable Market for Home Services Grows to $657B According to New Report from Angi
July 14 2022 - 8:05AM
Today, Angi (NASDAQ: ANGI), a leading and comprehensive solution
for everything home, released its updated The Economy of Everything
Home Report, which includes the most comprehensive and up-to-date
estimate of the total addressable market (TAM) for home services in
the U.S. This report, compiled by Angi’s Chief Economist Mischa
Fisher, estimates a TAM of $657 billion representing over 10%
growth this year.
“2022 is a transitional year for the home service market,”
said Mischa Fisher, Chief Economist, Angi. “The
Total Addressable Market (TAM) grew by an additional $62 billion,
reaching a new high of $657 billion; however, the rate of growth
slowed down from 18% last year to 10% this year. The explosive
growth rate we saw last year as massive portions of consumer
spending shifted to the home during the global pandemic has begun
to taper off. This return to market normalcy is expected and
ultimately is a good thing for both homeowners and home service
providers as more normalized supply and demand means that
homeowners can more easily find more pros to take on their
projects.”
Key insights from the report include:
- The home services total addressable market stands at
$657 billion representing:
- Home improvement: $475B
and 152.5 million
projects
- Home maintenance: $105.9B
and 419.7 million
projects
- Home emergency repair: $76.4B
and 93.5 million
projects
- The size of the market in total project volume is 665.6
million projects completed annually, with year-over-year
increases in both improvement projects and emergency projects
- There are over 6 million home service pros working for
approximately 2.5 million businesses
- The total housing stock is continuing to rise to a total of
143 million housing units, including 93.5
million single family homes, which remain Americans' most
popular way to live. The average age of the housing stock continues
to rise, to an average of 47 years
- Home equity gains coupled with rising interest rates will
increase the competitive position of remodeling versus moving, as
the total cost of buying a new home has nearly doubled since
2020
- The growth rate of 10.9% from 2021 is double the 5.7% increase
in real GDP the economy as a whole experienced, showing that home
service spending remains proportionally strong
“This is one of the most dynamic times in the history of the
home service industry, and while 2022 is a transition year to a
more normalized market, what counts as ‘normal’ remains
unprecedented,” said Fisher. “Right now, there are a lot of
competing forces, but we think these forces will end up as
tailwinds for home services. For example, rising interest rates
hurt consumer spending and home sales, but higher interest rates
also anchor people into their existing homes and disincentivize
moving, which in turn boosts remodeling.”
This is Angi’s third annual Economy of Everything Home
Report. This report’s TAM estimates are built around
Angi's thorough understanding of the demographics, housing units
and professionals that comprise the market, as well as a
comprehensive look at the cost of goods and services that make it
possible to care for our homes.
For the full report, visit
https://www.angi.com/research/reports/market/For more Angi
Research, visit https://www.angi.com/research
MethodologyAngi Research’s market model is
built by modeling the individual spending patterns of every
household in the United States individually. Our modeling
methodology represents our best estimates using current methods and
data; we expect both quality and quantity of data to improve, and
models to be further refined and improved in future editions.
Specifically, there are several areas where the data collection
methods between the ACS and Angi’s research team differ, some of
the variables are captured categorically in one survey and
cardinally in another requiring conversions that may distort some
results; furthermore, differing statistical modeling techniques can
produce different estimates of slope coefficients or different
findings of significant or insignificant predictor variables.
While our research team views the results contained in this
report as best current estimates, they are of course subject to
upward or downward revision, change and continued refinement in the
future.
About Angi
Angi (NASDAQ: ANGI) is your home for everything home—a
comprehensive solution for all your home needs. From repairs and
renovations to products and financing, Angi is transforming every
touch point in the customer journey. With over 25 years of
experience and a network of more than 200,000 pros, we have helped
more than 150 million people with their home needs. Angi is your
partner for every part of your home care journey.
Angi Corporate Communications
Mallory Micetich(303) 963-8352
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