chippyo
Industry Trends Report 2025

Home Service Industry Trends for 2025

Home improvement spending is rising fast but homeowner satisfaction isn't. Most homeowners still accept the first or second quote they receive, even though getting 3–5 estimates leads to better prices, better outcomes, and fewer regrets. These trends reveal how much is at stake and why it's more important than ever to vet your quote.

Tip: Compare Before You Commit

Upload your quote and see what others paid for similar work.

Price Alert

Home Service Estimates Are Skyrocketing

The average price of a roof replacement has nearly doubled in 8 years, according to the Home Improvement Research Institute. With inflation, labor shortages, and material costs rising, contractor quotes are increasing across nearly every category.

Why This Matters:

Without comparing multiple estimates, homeowners may unknowingly accept inflated prices.

Roof Replacement Prices

2015
$7,700
2023
$15,000
+95% increase

Source: Home Improvement Research Institute

Satisfaction Report

Satisfaction Still Lags Behind

Homeowner Satisfaction After Projects

😊
43%
Feel Happy
🙂
38%
Feel Satisfied

According to the National Association of Realtors, homeowner joy and satisfaction with renovations isn't as high as you might expect. Only 43% feel happy when the project is done — suggesting that even after all that investment, expectations often fall short.

Could it be the contractor?

Rushed decisions and minimal vetting may lead to regrets.

Source: National Association of Realtors

Market Growth

Home Remodeling Activity is Growing

Solid Labor Market

Strong employment rates give homeowners confidence to invest in major renovations

Rising Home Values

Increased property values provide equity for financing home improvement projects

Improving Home Sales

Better existing home sales activity encourages homeowners to upgrade their properties

Source: Harvard University Joint Center for Housing Studies

Spending Analysis

Spending Just Jumped $200 Billion

U.S. homeowners spent $827 billion on home upgrades over the last two years — a $200 billion jump. It's not just due to inflation — more people are doing more projects, meaning more opportunities for contractor pricing disparities.

What to Do:

Don't rush. More activity means more options — and more chances to compare quotes wisely.

Home Improvement Spending

$827B
Total spending (last 2 years)
+$200B increase
+4%
Increase in total number of projects

Total home improvement spending

U.S. homeowner spending on home improvements (2013-2023)

Don't Get Burned — Compare Before You Commit

With project prices rising and satisfaction levels falling, it pays to slow down and get multiple estimates. Upload your quote on chippyo and get real feedback from the community before signing anything.

Get a Second Opinion →
Motivation Analysis

Primary Reason for Completing the Remodeling Project

Most homeowners remodel to refresh worn-out surfaces (27%), improve energy efficiency (19%), or prepare to sell their home within two years (18%). Motivations range from functional upgrades to personal preferences, but in every case, remodeling is a major investment. Choosing the right contractor is key to making that investment worthwhile.

Upgrade worn-out surfaces, finishes and materials27%
Improve energy efficiency19%
Will sell in next 2 years18%
Time for a change18%
Add features and improve livability8%
Modernize5%
Just moved into the home and wanted to customize4%
To improve organization and storage1%

Source: National Association of Realtors

Payment Methods

How Project Was Paid For

More than half of homeowners (54%) financed their renovation using a home equity loan or line of credit, while 29% used savings. With such large sums at stake, often requiring borrowed money, it's even more important to ensure the quote you accept is fair and competitively priced.

Home equity loan/line of credit54%
Savings29%
Credit card10%
Another type of loan4%
Gift3%
Financed through remodeler/store3%

Source: National Association of Realtors