The home services industry is experiencing remarkable growth, driven by an increasing demand for essential services such as plumbing, lawn care, painting, and cleaning. For entrepreneurs, this growth presents an opportunity to build a business that meets rising demands while offering stability, even amid uncertainties like technological changes and shifting work arrangements. For instance, home services are less likely to be impacted by developments like AI, making them a more attractive option compared to other business ventures.
As 2025 draws near, the home services sector is emerging as a smart and promising area for franchising. Here are several key reasons why investing in a home services franchise is a good idea right now:
1. Leverage Lower Overhead Amidst Inflation
In today’s economic climate, where inflation affects many industries, the home services franchise model presents an opportunity to capitalize on potentially lower overhead costs compared to traditional brick-and-mortar businesses. This allows business owners to quickly get their companies off the ground and on the path to yield a return on their investment.
Inflation and supply chain issues may also have less of an impact on home service franchises thanks to:
- Home-Based Operations: Some home services franchises allow you to operate from home initially, reducing expenses associated with renting or leasing commercial space when you are first building your business.
- Minimal Inventory Requirements: Unlike retail franchises that require significant inventory investment, many home service franchises operate with limited inventory, focusing on service delivery rather than product sales.
- Flexible Workforce: You can start with a small team and scale your workforce based on demand, allowing you to keep labor costs manageable while still meeting customer needs.
2. Home Services Are Booming
One of the most compelling reasons to consider a home services franchise is the consistent demand for these services. The home improvement segment has been growing for decades, doubling in size since 2008 and is projected to exceed $600 billion by 2027. The demand for skilled home service professionals who can offer restoration, remodeling, and emergency repairs has reached unprecedented levels.
Demand in any Market: When inflation and interest rates are high, homeowners typically stay put and maintain their current properties with repairs, maintenance, and upgrades rather than moving.
Conversely, when interest rates are low, more people are encouraged to buy homes, leading to a surge in demand for services related to new property purchases, such as renovations and improvements.
Today, the uncertainty around the long-term direction of interest rates has cooled the home-buying frenzy, and this will likely lead many homeowners to choose to stay in their homes, which will still require enhancement, preventative measures, and maintenance, driving demand for services within the home service industry.
A few contributors to making home updates include:
- Aging Homes: Many homes across the U.S. are aging and need repairs or upgrades. Homeowners are increasingly looking for professionals to help maintain their properties.
- Changing Lifestyles: As people continue working remotely from home, they are more likely to invest in their living spaces, leading to a surge in demand for home improvement services.
- Rising Frequency of Natural Disasters: The rising frequency of natural disasters is a critical factor when considering starting a home service franchise. An alarming increase in the severity and occurrence of events such as hurricanes, wildfires, and floods has occurred in recent years. Hurricanes Milton and Helene, which combined caused over $100 billion in damage, have underscored the urgent need for restoration and repair services in affected regions.
3. Proven Business Models and Support
Home services franchises come equipped with proven business models that have been refined over time. This not only enhances the likelihood of success but also helps franchisees adapt to fluctuating economic conditions. Lenders may be more willing to finance franchise ventures because of their track record of success, making it easier for new owners to secure funding.
Moreover, being part of a recognized brand network, such as Neighborly®, brings additional advantages. Franchisees can collaborate with fellow owners to streamline operations, reduce costs, and enhance marketing efforts, creating a greater collective impact.
4. Being Your Own Boss Is Possible
As we move into 2025, the trend toward flexible work models continues to reshape the job market and workforce dynamics. Many individuals are seeking opportunities for a better work-life balance, and owning a home services franchise can offer that. Franchise owners can set their schedules and create a working environment that aligns with their personal and professional goals.
This flexibility appeals not only to those who wish to spend more time with family or pursue other interests but also to those looking for a more fulfilling career path outside the traditional 9-to-5 structure. Investing in a home services franchise allows you to make a significant career shift with no experience required and tap into a consistently in-demand industry, allowing you to leverage your skills, pursue your entrepreneurial dreams, and enjoy the benefits of being your own boss.
Grow Your Future with A Home Service Franchise
The home services industry presents a wealth of opportunities in 2025 for aspiring entrepreneurs. With consistent demand, lower overhead amid economic fluctuations, and the ability to leverage proven business models and support, investing in a home services franchise is a strategic decision for those seeking to forge their own path in business.
Whether you're motivated by the prospect of financial independence, the desire for a career change, or the chance to make a meaningful impact in your community, Neighborly can help you assess your abilities in becoming a franchise owner and offer top home services franchise opportunities so you can achieve your career and personal goals. Get started today by downloading the eBook, The Entrepreneur's Guide to Personal and Professional Freedom.
