Lazard Consumer Pulse Survey: Residential Services

Reports and studies — Financial Advisory, Consumer

February 22, 2024

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In recent years, the home improvement and repair services market has experienced double-digit revenue growth and comprises large national and mid-size regional providers, as well as local businesses, attracting private equity interest and strategic mergers. However, continued economic uncertainty, general lack of consumer confidence, and increased interest in DIY (do-it-yourself) could create pause for consumers continued spending in the DIFM (do-it-for-me)-driven service sector.

To better understand consumer intent, the Lazard/CH Consulting Advisors Consumer Pulse Survey: Residential Services surveyed 1,200 U.S. consumers on how they identify, select, and spend on residential services to understand spending drivers and interest. Our survey examined seven service areas that appear primed for continued investment: home repair; major home projects; structure; lawn & garden maintenance; indoor; and pool & spa.

Our Survey Results with Selected Exhibits:

Weathering the Economy at Home

Over 40% of respondents had a neutral-to-positive outlook on the economy and endorsed maintaining or increasing spending on DIFM services. When asked about budget constraints during a recession, 60-80% would either delay switching to DIY or not give it up entirely, indicating the importance of these services. This implies consistent revenue streams for the industry.

Emerging Services

For our survey, we examined the interest and usage of several emerging service areas including outdoor kitchen, smart home, holiday & event, and outdoor electronics design & installation. Our results found a good number of respondents have already used these services and found them highly valuable.