Home Services Growth for HVAC Owners
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Why Home Services Is One of the Hottest Industries Right Now
The home services industry in the United States has become one of the most powerful money-making businesses of the decade. Research from Mordor Intelligence projects the total value of the home services market at roughly $870 billion in 2025, expanding to more than $1.4 trillion by 2030 (see chart below).
This steady growth creates a major opportunity for HVAC, plumbing, and electrical companies positioned to scale with structure and systems in place.
Harvard's Joint Center for Housing reports that homeowners are spending record amounts of money on home repairs and replacing outdated systems, such as HVAC, plumbing, and electrical.
That growth rate, which averages nearly a 10% compound annual growth rate, keeps going strong even with high interest rates and uneven construction cycles.
This is happening because homes are getting older and people are staying in their houses longer than before. These aren't just temporary trends.
These are long-term structural changes that will continue to create opportunities for HVAC, plumbing, and electrical companies over the next decade, especially for those prepared to scale with systems and leadership in place.
As a business and profit coach who works with established HVAC and trade businesses that exceed $ 5.0 M in revenue, I’ve seen both sides of expansion.
Why Homeowners Are Driving Multi-Trade Growth
As a profit business coach( leadership page), when analyzing business trends in the trades, I tell my clients that customer expectations have changed faster than most contractors realize.
Homeowners no longer want to call three separate companies for heating, plumbing, and electrical work. They want one trusted name that can handle everything.
This one-stop model is now visible in national consumer surveys and merger activity.
Companies that adapt to what customers want are capturing a larger market share, while single-trade companies are being left behind.
The businesses that build strong operational systems before scaling will capture the lion’s share of new opportunities. They attract repeat customers who value reliability and convenience, and that loyalty directly translates to higher lifetime value.
The Profit Equation Behind Multi-Trade Expansion
In most competitive markets, an HVAC service lead costs roughly $75 to $100, a plumbing lead costs $60 to $90, and an electric lead costs $50 to $80, according to ServiceTitan.
At that cost per lead, a single-trade model forces you to fight uphill each year to maintain profit.
However, when you operate as a full-service brand, the same investment builds long-term customer relationships across heating, cooling, plumbing, and electrical services.
Customer lifetime value rises, seasonal swings level out, and you stop chasing one-time calls.
Keeping Up with AI in the Home Services Industry
Artificial intelligence is transforming the way some top home service companies operate their businesses. Staying current with technology is not optional.
The market is moving fast, and homeowners now expect digital communication, transparent pricing, and seamless service from start to finish.
Companies that fall behind in AI will struggle to maintain the efficiency and responsiveness that modern customers expect.
According to a 2025 report from Housecall Pro, over 70% of contractors have tried AI tools, but only about 40% are actively using them. 30% have abandoned the technology after initial experimentation.
The success rate is significantly lower, with only 4% of companies in construction and HVAC effectively utilizing AI, compared to 12% in manufacturing and healthcare.
Progressive HVAC home service companies are currently utilizing AI to transform their day-to-day operations.
These HVAC home service owners use:
AI-assisted scheduling that shortens drive time and improves on-time arrival.
AI-informed pricing that flags underpriced work before it is submitted.
Chat systems that convert more site visitors into booked calls.
AI readiness is now a defining factor in whether your company will succeed or fall behind in this competitive marketplace. Technology delivers real results.
The companies that benefit are those that feed accurate AI data into their systems, consistently follow the workflow, and review performance metrics on a weekly basis.
Systems without follow-through risk becoming cost centers instead of profit drivers.
In my coaching programs , I ensure that every client understands not only what AI tools exist but also how to use them correctly.
Your team needs to be held accountable for tracking performance metrics and building internal accountability so that technology becomes a profit lever, not a distraction.
Why Now Is the Right Time to Expand
The United States has more than 100 million homes, and many of them were built decades ago. These homes require regular maintenance to remain comfortable, safe, and in good working condition.
Harvard's research indicates that necessary repairs and replacements, including HVAC, plumbing, and electrical systems, now account for approximately half of the expenses homeowners incur for home maintenance. These are services that homeowners cannot put off for long.
When the economy slows down, furnaces still break, pipes still leak, and electrical systems still fail. This is why the home services market stays strong even when other parts of the economy struggle.
Smart investors, private equity firms, and large companies all take note of this. They're buying up multi-trade service companies that can handle heating, cooling, plumbing, and electrical work all in one place.
That tells you something important: the market rewards companies that serve multiple trades.
That’s why the Home Services Industry remains strong when other sectors stall.
The message is clear. The market now rewards contractors who can provide comprehensive service. Those who stay single-trade will continue to work harder every year for smaller returns.
How to Build Home Services Expansion the Right Way
The difference between profitable growth and daily chaos always comes down to one thing: having a clear plan and following it.
HVAC owners who treat adding plumbing or electrical as a business launch consistently make money from it. Those who expand reactively usually create confusion, not profit.
Building Your Foundation for Residential Growth
As a seasoned business coach with over 25 years of experience, I advise my clients to implement a CRM and scheduling system that integrates calls, routing, invoicing, and reviews, ensuring the office and field stay aligned.
Tools like ServiceTitan, Jobber, or Housecall Pro create visibility and prevent the bottlenecks that stall expansion.
Next, test your residential pricing before scaling, and train technicians to communicate clearly once you have scaled.
Develop a task-based pricing matrix that incorporates labor, travel, and materials costs.
If your top technicians keep discounting, fix your value story, not your price. Train for both communication and technical skills. A technician who explains clearly will outsell one who simply repairs and leaves.
Customer acquisition in home services is expensive, but keeping customers drives profit. Use membership programs that combine HVAC, plumbing, and electrical checks to build loyalty, stabilize cash flow, and reduce marketing costs.
I got a call from a fifteen-million-dollar HVAC contractor that expanded too fast, adding services before fixing dispatch or pricing.
Calls exploded, but cash flow collapsed within nine months.
Another owner in Texas began small, operating in just one county.
He set up scheduling software before adding new services, properly trained his team, and grew the business step by step.
Within two years, his residential services were hitting 13% net profit, which is strong for this industry and meant real money staying in the business after all expenses were paid."
The difference between the two owners was that structure, systems, and leadership were in place as expansion rolled out.
The Home Services Industry: How to Expand Step By Step
Step 1: Expand the Homeowner Relationship
You have something new companies are missing: customers who already know and trust you."
Utilize scheduled HVAC visits to incorporate plumbing and electrical inspections as well.
Present options clearly and show how one provider improves convenience, safety, and reliability. The goal is to deliver more value to the same customer, not a brand overhaul.
Step 2: Appoint One Leader With a Scorecard
Expansion fails without ownership.
Assign a single manager to oversee the new division.
Track the following numbers every week:
Booked calls
First-time fix rate
Memberships sold
Collections
Average ticket sold
Weekly check-ins and clear ownership keep your expansion on track.
Step 3: Pilot One Compact Service Area
Start in one county or a cluster of zip codes where routes are particularly congested.
Begin with repairs and maintenance, then add indoor air quality, minor electrical work, and water heater services.
Make sure everything works smoothly in this test area before expanding to new territories.
Step 4: Install the Operating System
Implement a CRM and scheduling platform that connects calls, routing, field notes, invoicing, and reviews.
Ensure timestamps, photos, and materials are captured in the field.
Anything left manual in month one becomes a leakage point in month twelve.
Step 5: Build and Test a Pricing Matrix
Create task-based pricing that includes labor time, travel, parts, and all other additional costs.
Let technicians quote from tablets. No paper. No discounts.
Review close rates daily. Please inform technicians that there is no discounting.
Step 6: Train for Communication, Not Just Skill
Teach technicians to open the visit, present findings, offer good, better, and best options, and invite the homeowner into a maintenance plan without pressure.
Have a manager roleplay, shadow, debrief, and coach until clarity becomes habit. Having an incentive program built into their sales is the best way to promote great results.
Step 7: Separate the P&L and Track Cash Conversion
Keep a separate residential profit and loss statement. Post revenue, labor, materials, marketing by channel, and overhead separately.
Review the cash conversion from the booked call to the collected cash on a weekly basis. Visibility allows you to correct small leaks before they become significant losses.
Your Next Move in the Home Services Industry
The Home Services Industry is entering its strongest growth cycle in decades.
It rewards owners who bring empathy to the living room and discipline to the back office. Growth will not come from volume alone but from clarity, systems, and trust.
Companies that integrate plumbing, electrical, structure, data, and discipline will build lasting profit and stability, while those that wait will spend their time catching up.
If you are ready to build the structure that supports scale, adding plumbing and electrical to a strong HVAC foundation will not dilute your brand. It will deepen it and give your customers the one-call experience they already expect.
Key Takeaways
Master one local market before expanding to ensure stable growth within the Home Services Industry.
Put one accountable leader in charge of the new division to maintain structure and clear communication.
Install CRM and scheduling software that unifies office and field operations for better efficiency.
Price from a tested matrix and review results weekly to keep margins strong and consistent.
Train technicians on clear communication skills that raise close rates and build homeowner trust.
Keep a separate residential profit and loss statement and track cash conversion weekly for accuracy.
Build bundled memberships across HVAC, plumbing, and electrical to balance seasonal revenue.
Protect your reputation, since consistent reviews drive visibility, reduce lead costs, and strengthen your long-term position in the Home Services Industry.
Frequently Asked Questions
What is driving growth in the Home Services Industry in 2025?
The Home Services Industry is growing rapidly because homes across the United States are aging, and homeowners are spending more money on maintenance and repairs.
Research from Mordor Intelligence indicates that the industry is expected to reach approximately $870 billion by 2025 and is projected to climb to $1.4 trillion by 2030. Homeowners now want one company they can trust for heating, cooling, plumbing, and electrical services, which is why multi-trade businesses are seeing strong, steady growth.
Why should HVAC companies add plumbing and electrical services?
Expanding into plumbing and electrical services enables HVAC companies to foster stronger relationships with existing customers while reducing the cost of acquiring new ones.
The same homeowner who calls for a furnace tune-up can also use the company for water heater repairs or lighting work. This model enhances customer lifetime value and helps mitigate slow seasons.
How can technology and AI improve daily operations?
AI tools help home service owners make informed decisions by leveraging data instead of relying on guesswork. Scheduling systems powered by AI can reduce drive time and improve on-time arrivals, while pricing tools can flag jobs that may not be profitable.
According to a 2025 report from Housecall Pro, more than 70% of contractors have tried AI, but fewer than half use it consistently. The ones who do save time, reduce mistakes, and close more jobs.
How long does it take to make new divisions profitable?
Properly managed trades divisions, regardless of whether they specialize in HVAC, plumbing, or electrical services, can achieve similar net profit performance when pricing and operations are optimized.
Structure and patience matter more than speed.
What systems are most important to have before expanding?
Every growing company in the Home Services Industry needs a reliable CRM, a strong scheduling platform, and a tested pricing matrix.
These tools connect your office and field teams, track performance, and make it easier to see what is working. Without this structure, it becomes difficult to maintain consistent quality and profit.
How can full-service companies effectively manage their reputation?
Companies that respond quickly to feedback, thank customers personally, and resolve problems promptly build trust and receive more five-star reviews.
Those reviews matter because they raise your visibility in local search results and lower your cost per lead. In the Home Services Industry, reputation functions like currency—every positive review compounds over time.
What is the biggest mistake owners make when expanding?
The biggest mistake is expanding too fast without the right systems or leadership.
Many owners hire crews and launch ads before addressing dispatch or pricing issues. Growth built on weak foundations leads to chaos and lost cash flow. The companies that win start small, build one smooth operation, and then replicate it.
You Can't Build This Alone
Most HVAC owners who expand without help lose money in the first year. Don't be one of them!
Book your free Home Service Expansion meeting today and receive a clear 90-day expansion plan that actually works, before hiring a technician or spending a dollar on marketing.