At the end of July, MarketSharp, a leading software company for contractors and Remodelers, announced that its parent company had just released the first semi-annual market-trend report for 2020. That parent company is EverCommerce, which provides business management tools, customer retention solutions and marketing information to more than 200,000 service businesses around the world.
According to the report, the market for U.S. home services is not as volatile as it would seem after the global COVID-19 pandemic and a National Emergency that was declared on March 13. In the first quarter, before the emergency was declared and stay-at-home issues were ordered in many states, the combined market grew by 68 percent over the same period in 2019. However, after the pandemic hit, the same market dropped by an astounding 75 percent in only three weeks.
In May, however, the market began to look up again, especially in the realm of exterior services. Interior services and remodeling jobs remained severely impacted at this time as people were uncertain about how to remain safe with contractors working inside their homes. This has not stopped a great number of homeowners to declare that they still intend to have remodeling work performed before the end of the year.
Other than the advent of new technologies in the sector to connect companies with contractors and customers, such as virtual consultations and estimates performed by drones, EverCommerce declared that it had uncovered three trends that have created a new “normal” in the market:
- After individuals were confined to their homes for several months, 70 to 75 percent of homeowners said they would complete a renovation project by the end of 2020. Among the top renovations being planned is upgraded kitchens.
- The top spenders for home renovations are millennials because of their tendency to buy older homes.
- Exteriors gathering spaces are becoming more popular in a phenomenon dubbed as “porching”. Outside spaces have been deemed safer than inside spaces for socializing with friends, family and neighbors.
Following are several other findings uncovered in the report titled U.S. Home Services Consumer Demand: Trends and Insights Q1/Q2 2020 Report:
- Overall, demand for home services began climbing again in April, with May hitting an all-time high for the year.
- Although there were double-digit declines after March, May saw a double-digit recovery.
- In May and June, demand for interior and renovation services were higher than the same months in 2019.
- Kitchen services were impacted the most by the pandemic as many states declared these renovations non-essential.
- Regional differences in the recovery of home services varied widely.
The report signs off by stating that although the construction industries were impacted to a lesser degree than other industries, forecasting for the second half of the year will be difficult.
To download the full report, you will have to give your name, company name and email address, but you can get it here: U.S. Home Services Consumer Demand: Trends and Insights Q1/Q2 2020.
