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2023 home services industry trends: From supply chain to online booking needs, challenges remain

Stephanie Figy
May 4th, 2023
9 Min Read

Does your home services business have a plan to keep up with projected 2023 industry trends? With mortgage rates high, people plan to optimize and invest in their existing spaces. So, what does this mean for the home services industry heading into 2023? Read on for insights into what trends homeowners, renters, and contractors can expect to see as we enter a new year full of new opportunities.

The Big Picture

Before diving into next year’s trends, it's critical to address the trends we've noticed this past year. Coming off of tremendous growth in 2021, 2022 proved to be more of a transitional year for the home services market. The Total Addressable Market (TAM) reached a new high of $657 billion, but the rate of growth slowed down from 18% last year to 10% this year.

With rising interest rates and inflation, home sales are trending down, as many homeowners choose to stay put and build equity. These home equity gains point to a strong year for remodeling.

While the home service business sector has grown tremendously despite the pandemic, it's essential to acknowledge the domino-effect trends that affect customers, from booking and funding home projects to how contractors will handle incoming demand.

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Trends Affecting the Home Services Industry 

With over 665 million home service tasks completed a year, the home services industry will need to evolve as we continue to see business strains and challenges hitting the industry.

Housing Market

With more homeowners choosing to stay in place and build equity while interest rates and inflation rise, remodeling will become an attractive option. Over the past two years, the typical household gained $80,000 in home equity wealth, which could fuel 12 years of spending at the TAM’s total size.

Technician Shortage

As older generations retire from the home service industry, contractors find it challenging to attract newer generations to a career in the trades. In April, the US construction industry had roughly 440,000 job openings according to an Associated Builders and Contractors analysis of data from the U.S. Bureau of Labor Statistics’ Job Opening and Labor Turnover Survey—the highest levels recorded since industry-level jobs data was first collected. And the Bipartisan Infrastructure Law taking effect will likely add strain to a tight labor market. 

Looking ahead, 2023 should be a year of opportunity for contractors to excite their current technicians and newer generations about working in home services. From competitive salaries, benefits, and flexible working hours to rewarding training and apprenticeship programs, contractors must rethink their business operations to support a balanced lifestyle for technicians.

Leveraging tech-enabled services to drive demand and help prioritize high-value jobs helps create a balanced lifestyle for home service teams.

Supply Chain Levels

Construction consultant Linesight’s newest analysis shows construction material prices stabilizing over the next year.

“For the last two years, the global construction industry has been at the mercy of disrupted and broken supply chains that have made critical material scarce and have caused some significant increases in the cost of building,” said Patrick Ryan, executive vice president for the Americas at Linesight. “The good news is that many of these materials are now more readily available, which is causing material prices to stabilize, but we are not out of the woods yet because of high energy costs, labor shortages, and tariffs that are tempering the availability of materials and keeping the cost of construction from coming down.”

With some stabilization, project delays and costs should decrease.

Climate Considerations

Another reason homeowners and renters are investing in their home's performance is to prepare for changes in climate due to record-breaking weather events, like the 2021 Texas arctic blast that left millions of people with burst pipes, flooding, and without enough drinking water or electricity to keep warm. 

While we can't predict or control what Mother Nature will bring in 2023, the consequences of last year's unprecedented weather conditions will lead homeowners and renters to prioritize preventive maintenance to prepare for any extreme weather events or emergencies. From system repairs to proper insulation, people will seek long-term and reliable solutions for their homes to ensure they're safe and protected year-round.

Education around water and energy efficiency, as well as the installation of products to support these initiatives, will also become increasingly prevalent in the future as homeowners focus on sustainability and ways to save money on their utility bills.

Online On-Demand Home Services

According to a Technavio press release based on its market research report, the on-demand home services market size is expected to grow by $4.75 billion from 2021 to 2026 at a compounded annual growth rate (CAGR) of 60.77%, though 42% of the market growth is expected to come from the Asia Pacific market, with North America following.

Online on-demand home services refer to all digital marketplaces that offer convenient access to a wide range of home services. The global demand for online on-demand home services is increasing due to the ease of convenience and accessibility provided by these services and apps. These home services platforms connect consumers with service providers and manage billing and payment transactions, simplifying the payment process for customers.

Trends by Trade

Expect to see these market trends by trade in 2023.


Nowadays, a simple sneeze on the sidewalk turns heads. The awareness around clean hands, surfaces, and especially clean, comfortable living spaces is now remarkably common. As we journey through 2023, the following systems and methods may grow in popularity as homeowners take control over their heating, ventilation, and air conditioning (HVAC) systems.

  • Digital zoning: This programmable system allows users to set different temperatures throughout their home to target the areas they spend more time in. They're easy to install with wireless internet and help reduce energy costs.

  • User-friendly controls: Homeowners installing new smart systems and devices want simple and user-friendly interfaces that can adapt to their home lifestyle behaviors and alert them of any dangers, like furnace issues or CO leaks.

  • Smart thermostats: To help keep their homes comfortable and save money every month, homeowners are investing in programmable thermostats that allow them to monitor and set their home's temperature on their smart device from any location.

  • IoT HVAC systems: HVAC systems are adopting smart technology for equipment, humidity, and temperature monitoring. Smart HVAC systems can also signal alerts for when something's not working or it's time for preventive maintenance.

  • Geothermal solutions: While more expensive to install, geothermal systems are becoming popular due to their higher operational efficiency and durability, lower noise levels, and eco-friendly nature.

  • 3D-printed air conditioner: Technology meets HVAC with 3D-printed porous blocks. Using durable and reliable materials, these blocks absorb humidity and cool air through evaporation. Although this technology is more recent and less common, it is something to look out for in 2023.

  • Air purifiers: What used to be considered extra additions to a home's HVAC system have become a hygienic necessity. Products like air scrubbers, air cleaners, and whole-house dehumidifiers can help prevent the spread of germs and contaminants, monitor humidity to protect wooden furniture and floors, and improve overall indoor air quality.


With more time spent at home than at the office, families use their bathrooms, kitchens, and laundry rooms more often. In effect, they're likely to invest in plumbing systems and fixtures that require less maintenance.

  • Tankless water heaters: Homeowners are turning to tankless water heaters because they heat water only when it’s needed, whereas traditional water heaters heat large amounts of water regardless of whether it's used. According to the US Department of Energy, tankless water heaters can be 24% to 34% more energy-efficient than conventional tanks, and last up to 20 years.

  • Infrared technology: While commonly used to detect electrical issues, infrared cameras are trending because they can also detect leaks and moisture in plumbing systems and determine the source of the problem without tearing down any cabinets or walls.

  • Greywater recycling systems: As an eco-friendly and water-conserving alternative, greywater recycling systems reuse wastewater from washing machines, showers, baths, sinks, and dishwashers for other purposes like watering grass or the garden.

  • Smart pipe systems: As homes get smarter, so do pipes! Smart pipe systems use sensors to detect any issues or leaks within pipes, helping homeowners prevent water damage.

  • Water quality: Just like air quality, water quality systems like water softeners are becoming more popular as people spend more time at home, use their water fixtures more frequently, and focus on personal hygiene and health.


From new home office lighting to electrical vehicle charging, homeowners want reliable, safe, and energy-efficient electrical systems. Check out the following trending electrical upgrades.

  • USB outlets: The majority of smart devices are powered by USB cords. Rather than installing the traditional two- or three-pronged outlets, homeowners are installing USB outlets to eliminate the use of extra adapters.

  • Lighting automation: Going back to the internet of things (IoT), the ability to control lights and dimmers on a smart device is becoming increasingly popular to improve home efficiency and convenience.

  • Generators: Whether there's an unexpected power outage or an extreme weather event, families are investing in better generators so they can power their homes when the electric grid fails.

  • Vehicle-charging stations: As more people invest in eco-friendly vehicles, they're in need of in-home charging stations with the installation help of trained electricians.

Teaming Up With Technology

As seen from across the trades above, one of the major trends we'll continue seeing in 2023 is the combination of home systems and technology. Providing seamless and efficient solutions, technology allows customers to rethink how they can save time, money, and energy—all at the touch of their fingertips.

Since 2016, investments in smart technology have increased by 20%. Additionally influenced by the pandemic, touchless devices and fixtures like touchless sinks or voice-recognizing systems like the Amazon Alexa are also gaining more traction to help homeowners save time and energy.

As technology steps up its game, contractors should train their teams to become experts on installing anything from smart thermostats to home intercom systems to help homeowners connect all the elements of their homes.


Across all the trades and for any contracting business, telematics can and will continue to be a valuable tool in the home services industry. Using Global Positioning System (GPS) technology, many contracting companies use telematics as a method to track vehicle data, help with vehicle dispatching, and enhance overall operational efficiency.

Software for Contractors

Technology in home services goes beyond smart devices, smart home systems, and telematics. When hiring a contractor to install, repair, or maintain their home, homeowners and renters are looking for quick, efficient solutions that require less action on their behalf. That being said, we are seeing contractors beginning to implement software technologies like Schedule Engine to streamline their online business operations and enhance the user experience.

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Schedule Engine: Getting Ahead of the Trends

If you're a contractor looking for an extra hand to tackle the trends of 2023 and help your customers improve their home's performance, look no further than Schedule Engine.

Our suite of resources is here to lift the load off your staff.

  • Online Scheduling: Our online scheduling software streamlines the booking process, helping customers book complete appointments with less time, effort, and attention from you and your team.

  • Live Voice: With scheduling integrations and emergency on-call escalation workflow strategies managed by industry-trained agents, Live Voice makes it easy for you to deliver the best customer experience around the clock, even after hours and on holidays.

  • Live Chat: Our live chat experience features real industry-trained agents who can book real jobs on the spot, build brand loyalty, and boost customer satisfaction.

From booking automation to live chatting, our services help you manage higher call volumes, connect your customers with real live agents to solve their problems, and provide you with customer insights to track a customer's journey from start to finish.

Do you think Schedule Engine could be the perfect solution for your contractor business? Take a look at how our services helped modernize Air Control Heating & Air’s Roswell, Ga., business.

“Not having as many phone calls coming in because we offer online booking has made our lives much easier,” says Services Manager Zach Smith. “Fewer interactions with customers have freed up my time to put towards more important items. Plus, it's easier for the customer because they can book after hours, on weekends, whenever they want.”

How Can Contractors Win?

In 2023 and beyond, contractors must focus on customer care and implement efficient strategies to stay ahead of the rise in demand for home services. Whether that means optimizing their website, strategizing their staffing resources, or adopting software technology to streamline their business operations, innovation is endless as the industry grows.

In addition, online reputation across social media and review sites is more critical than ever as the majority of homeowners start their buying journeys online. Tools like ServiceTitan Marketing Pro - Reputation help home business companies generate a strong online presence through listings management and positive reviews automation. 

When you're more available for your customers and offer trusted, reliable services that address their home service needs, your home service business will stand out in a competitive landscape.

Want to learn more about how Schedule Engine can support your business from digital marketing tips to live services?

Download our latest Resource Guide on Exceeding Customer Expectations & Winning the Customer Experience: A Blueprint for Today's Home Service Provider.

ServiceTitan Software

ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25% in just their first year with us.

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