One of the more positive changes that came out of the pandemic is the increased love and commitment to our “homes” and, by default, to the home services market.
As we were driven back to our homes amid a global closure, considerable investment was made in addressing those spaces – adding offices to spare areas, outfitting children’s rooms as learning centers, and improving and renovating rooms to give everyone as much space as possible. This spanned all economic segments of the population – apartments, houses, and those that were both rented and owned. As a result, the in-home services market exploded. As an organization working primarily with in-home contractor networks, PlusOne was uniquely positioned to see how this shift can increase risk.
How is the In-Home Service Industry Growing?
The pandemic-driven growth of the 2021 market was not sustainable year over year at the 20% growth rate, but continued growth rates are expected, even with current inflation, supply chain, and labor market issues that are facing most industries. The growth can be attributed to both the influx of new companies, many created as freelance/gig providers, coming on the scene, as well as the many individuals seeking additional, flexible employment opportunities as part-time home service providers doing all manner of in-home tasks, as well as more fulsome renovation and construction work. Angi Inc.’s The Economy of Everything Home report cited 93.5 million single-family homes and over 143 housing units as the most popular way for individuals to live. And these homes need products, projects, and other services delivered by the same contractors that work in our customers’ networks.
While many have surmised that the boom in the real estate market may have a dampening effect on the industry, it is also possible the opposite will be true. As interest rates continue to rise and push new or changed home ownership out of reach for some, and home sales may stagnate, those remaining in their current homes may choose to renovate and direct their consumer spending in other ways that will continue to provide a boost to this evolving industry.
Consumers expect that whoever enters their home will not pose a safety risk, that they are competent, appropriately licensed and insured and background checked, and free of any relevant issues. As the home services market exploded, this requirement did not become any less important to homeowners. As an organization regularly working with consumers in their private spaces, having a robust and consistent program to vet and track information about its contractors is important. A negative in-home incident can torpedo an organization’s reputation in a matter of days if the incident hits the media. While there is no 100% guarantee, being able to demonstrate a robust process and attention to mitigation of risk will go a long way if an issue does arise. Likewise, an inadequately insured entity can quickly bankrupt a budding home services organization.
Your Partner in the Growing Home Services Market
Partnering with a risk-focused compliance partner, like PlusOne Solutions, can ensure companies thrive both on the job and as an organization in the in-home services industry.
Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.
About PlusOne Solutions
PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractorand vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.
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