Old Homes And Hot Home Services

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Neighborly? , the world’s largest home services company, recently hosted a franchise development webinar called “Why Trades Are the Best Kept Secret in Home Services.” I thought, no secret there. These are companies I have in my contacts.

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You see, my house is old. It was built in 1986. [Europeans need not comment.] My mortgage rate is also low. A whopping 2.875%.

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I’m part of that crowd that has no interest in moving anytime soon. Thus, my list of home service providers is looooong. It has to be.

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I live a repair, maintain and enhance journey that (count my lucky stars) doesn’t break the bank. I like it this way. And I’m not alone.

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Homeowners today are staying in their homes twice as long as a decade ago. And older homeowners are topping that.

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According to Redfin , nearly 40% of Baby Boomers have lived in the same home for more than 20 years. Not only are seniors staying put and aging in place. Homes in general are aging too.

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On the Neighborly webinar, Brian Woods, CFE , group vice president of franchise development for the repair service brands, and Brian Petranick , group president of the repair service brands, explained it like this:

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Of some 145 million homes in America, the median-age of owner-occupied homes is 40 years old.

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Again, not ancient Europe old. But let’s face it. That means a lot of homes need fixing.

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And, surprise! We are not a world of DIY pros these days. As much as HGTV and social media home renos are capturing eyes, it’s what the average person cannot do with two hands where the rubber meets the road.

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Translation: Demand for home services is blazing hot.

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Service trades are recession-resistant and a good investment.

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If you’re like me, when a toilet isn’t working, the washing machine is on the blink, or an air conditioner is blowing hot air, you call a professional. These things cannot be put off until a better day or a better economy. Regardless of market swings, high inflation, or insert-pain-point-here, it must get done.

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As Petranick said, that specifically makes repair service trades across the Neighborly platform recession-resistant.

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Likewise, it’s no surprise that Neighborly’s service brands awarded a record-breaking 463 franchises globally last year. Consumer demand is fueling the case for even more.

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Don’t I know it. Off the top of my head, I have my preferred plumber, painter, HVAC company, roofer, lawn guy, and handyman in my iPhone. I’ve called on each more than once. They are repeat service providers when I’m tackling a project on my own time and also when it’s an outright emergency.

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You name it. I’ve been there.

• No A/C on a hot July day when it’s 110 degrees.
• A hot water heater going out on Thanksgiving weekend.
• A leaky roof in a terrible rainstorm.
• Busted pipes in Winter Storm Uri’s historic deep freeze across Texas. [ Mr. Rooter Plumbing journeyman plumber Brett Swensen, pictured above was the first of many trusted service providers who saved our home!]

Home services were my heroes every time.

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Plus, whether it’s an emergency, a routine service call or even a splurge for upgrades, this will be the case in the franchise space for the foreseeable future.

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Why?

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Because people like me won’t trade the occasional upkeep or repair for some brand new address with a 24-month builder’s warranty at 7% interest over 30 years. First off, those homes aren’t readily available. And if they are, they aren’t priced right to leave the nest egg of home equity I already occupy.

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Since the housing crash in 2008, new home construction has not kept pace with demand. The country has a severe shortage of housing stock. And homebuilders have an uphill climb with high interest rates for mortgages, the rising cost of supplies, a labor shortage, a slow supply chain and more.

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While homeownership is the turtle in this race, the pros who repair homes are the hopping-busy rabbits. I’m betting Neighborly posts another impressive year of growth to meet that demand too.

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[Note: Neighborly is a client of BizCom Associates .] ?

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