Home services industry growth outpaces every category, on track to set a new all-time high

For more on the methodology for this report, click here.

In 2023, Yelp reported a new all-time high in business openings, signaling a new era of post-COVID recovery in the U.S. Eight months into the current year, our latest analysis provides early insight into the direction of new business growth in 2024 across the U.S., with the number of new businesses beating pre-pandemic levels (up 40% from 2019) while year-over-year growth has slowed (down 3%) compared to 2023. The home services industry is driving this overall new business stabilization, as it’s the only category to see growth (up 11%) over last year’s record numbers, leading in total business openings with 217K.

Services driving this new business growth include renter-friendly home upgrade projects, as many Americans remain priced out of the home market, and weatherproofing services that make homes more resilient to increasingly frequent extreme weather events. Pet-related businesses are also booming as dog ownership increases in the U.S. Yelp data also reveals the fastest-growing services brands leading this growth -- from HVAC and plumbing, to lawn care and pet care services.

In every U.S. state, including Washington D.C., home services ranked as the top category for new business openings among all categories on Yelp. While business growth remains healthy in the most populated states, with California leading the way (26K openings), followed by Florida (24K) and Texas (22K), the states with the highest percentage growth in home services businesses are less populous. South Dakota saw a 39% increase in home services openings, with Arkansas and Vermont increasing 35% and 28%, respectively.

Zooming in on the top 50 metros for total home services openings this year, mid-sized cities like Cincinnati (up 23%) and Kansas City, MO (up 22%) experienced the highest growth. Booms in these metros may be contributing to growth in the services industry, as Cincinnati saw post-pandemic growth above major downtowns and Kansas City was named among the fastest-growing economies.

Renter-friendly home services surge as housing market challenges continue

Although the Federal Reserve recently announced its first interest rate cut since 2020, renters will likely remain priced out of the housing market for some time, and many homeowners looking to move are choosing to stay put in their existing homes. Yelp data shows that searches and business openings for apartment agents increased 108% and 12%, respectively. In contrast, real estate agents experienced a 23% decline in both searches and new openings during the same period.

As consumers opt to stay ‌in their homes for longer, they’re investing in modest home improvements to upgrade their spaces without sacrificing their security deposits. This year, Yelp users are increasingly searching for renter-friendly home services, such as home organization (up 362%), peel and stick tile (up 73%), wallpapering (up 41%), home automation (up 27%), curtain installation (up 11%), and furniture assembly (up 10%). Service pros are meeting this demand with increases in business openings for these same categories: wallpapering (up 61%), furniture assembly (up 25%), home automation (up 23%), and home organization (up 18%), as well as several other home services.

US pet owners fuel interest in new pet-related home services

The pet services industry experienced significant growth during the pandemic as a majority of American households expanded their families with pets. That demand continued into this year with Yelp users searching for services that cater to their furry family members, such as pet photography (up 14%), pet waste removal (up 14%), and pet transportation (up 13%), comparing the first eight months of 2024 to the same time last year.

Yelp data also shows business openings for pet services saw a boost, such as pet-friendly lawn services (up 122%), pet-related landscaping (up 98%), and pet waste removal services (up 13%). Meeting families’ needs in the hardest phase of pet ownership, new pet cremation services increased by 72%.

*Read about the methodology here

Climate events drive demand for weatherproofing services

As storms become more devastating and temperature changes intensify, Yelp data indicates homeowners are investing in more weatherproofing services to protect their properties from weather-related threats. When comparing January - August 2024 to the same time period last year, Yelp users increasingly searched for categories such as insulation installation (up 26%), waterproofing (up 23%), snow removal (up 8%), and home window tinting (up 4%).

New home services in weather-related categories have also seen significant growth in business openings. In anticipation of what experts forecast as the busiest hurricane season on record, new generator installation and repair businesses have increased by 49% and new waterproofing services have risen by 19%. Entrepreneurs have also opened businesses to address needs related to extreme temperatures – for instance, heating, ventilation and air conditioning (HVAC) services businesses have grown by 10% to meet increasing demand amid extreme heat, and snow removal services increased 36% to assist households during major snow storms.

*Read about the methodology here

States that suffered major heat waves this year saw the largest number of new HVAC businesses open, including California (863 business openings), Florida (860), Texas (719), and New York (373). Notably, Arizona (202) made the top ten, as Phoenix residents endured 100 days of 100 degrees this summer.

Home design and weather-related businesses lead fastest-growing home services brands

As the home services industry outpaces all other industries in new business openings growth, we used Yelp data to rank the fastest-growing home services businesses across the U.S. and uncover the brands that are leading this acceleration. We analyzed business openings, searches, and consumer interest on Yelp from January-July 2024 to the prior year among businesses with 25 or more U.S. locations to determine the ten fastest-growing home services brands.

Ace Handyman (no. 8) and Richard’s Painting (no. 9) highlight how renters and homeowners are choosing to make modest upgrades to their homes in the face of high interest rates. Maven Air Care (no. 2), Mighty Dog Roofing (no. 3), and ATI Restoration (no. 5) address the impact of extreme weather conditions as homeowners take action to safeguard and restore their homes. Finally, businesses like ForeverLawn (no. 10), which sells dog and drought-friendly artificial grass, highlight the growth of pet services as consumers customize their spaces for their pets.

*Read about the methodology here

Home services entrepreneurs are driving record growth in the U.S., with 2024 on track to set a new all-time high for the category, as home services businesses meet consumers' evolving needs. As interest rates come down and consumers' spending power increases, we expect to see other industries return to growth. Yelp will continue to monitor these trends, providing insights into the ongoing economic shifts.

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