DENVER, June 8, 2021 /PRNewswire/ -- Today, Angi, the digital marketplace transforming every touch point in caring for your home, released 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 $595 billion and a total of 728.3 million household projects for 2021. It also forecasts further growth in the market due to supply shortages, rising input prices, low interest rates, home equity gains, demographic trends and digital migration.
This is Angi's second annual Economy of Everything Home Report, formerly known as the Home Service Market Report. It has been updated to incorporate the various sectors of the market more fully, as well as to weigh the factors driving its size, growth and evolution.
The total addressable market of $595 billion can be broken down into three distinct sectors:
- Home improvement market: $376.9 billion and 148.5 million projects
- Home maintenance market: $157.7 billion and 500.3 million projects
- Home emergency repair market: $60.6 billion and 79.5 million projects
"As a leading digital consumer brand in caring for our homes, Angi is in a unique position to provide the most comprehensive analysis of the size of the market, where it is strongest, the people who compose it, and what we can expect in the future," said Oisin Hanrahan, CEO of Angi. "2020 was a transformative year for the home as people's homes became more important due to the COVID-19 pandemic, and we saw homeowners' spending follow suit."
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.
"In addition to increased homeowner spending, prices for supplies and labor jumped, which all lead to considerable growth in the total addressable market," said Mischa Fisher, Chief Economist at Angi. "Based on our research, we expect that number to continue to grow."
A key factor in determining this market's TAM is the estimated 5.8 million skilled tradespeople working in home services, a labor category that is difficult to measure. The timely TAM is also the most up-to-date and accurate for the industry, taking into account the makeup of household structures across the country and the people living in them. The Economy of Everything Home Report estimates:
- Total of 141.5 million housing units in the U.S.
- 331 million people composing 128 million households across the U.S. for an average of 2.5 people per household
- Nearly 40% of America's housing stock is more than 50 years old
"141.5 million housing units is a staggering amount of construction and physical material that undergoes constant wear and tear from both occupants and the environment," continued Fisher. "How old that space is, how it is used and who lives there are all major drivers in the need for home services. With baby boomers aging in place and millennials taking on homeownership, we're likely to see the demand for home services continue to rise in the years to come."
Angi 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 a number of 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.
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 home services. With over 25 years of experience and a network of nearly 250,000 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 is an operating business of Angi Inc., formerly ANGI Homeservices Inc. (NASDAQ: ANGI).
Director of Media Relations at Angi