Home Inspection Industry Statistics for 2024
This research includes statistics and future trends in home inspections and the real estate industry over the next 5-10 years. Let’s understand what to expect in 2024, and what these statistics and insights mean for your business.
Here are some important home inspection statistics to highlight the current and projected state of the home inspection industry:
- The global home inspection market is on an upward trend, with a Compound Annual Growth Rate (CAGR) of 4.7% expected to reach $24.3 billion by 2026.
- The global residential home inspection market is expected to reach $100 billion by 2029, growing at a CAGR of 7.5% from 2023 to 2029.
- The demand for home inspections and home inspectors is expected to grow in 2024.
- The US home inspection market is expected to reach $25 billion by 2029, growing at a CAGR of 8% from 2023 to 2029.
- United States is the largest market for home inspections, followed by Canada, Europe, and Asia-Pacific.
- The majority of home inspections are carried out by independent contractors who offer their specialized expertise.
- On average, a home inspection in the United States is priced at approximately $350.
- The most demanding home inspection services are:- General home inspection, Wood destroying insect inspection, and Radon inspection.
Whether you’re an aspiring entrepreneur, a seasoned business professional, or a new home inspector looking to stay on top of the real estate and housing trends, this article will help you make the right decision for your home inspection business.
Is it a good time to start a home inspection business?
There are several factors to understand whether it is a good time to start a home inspection business in 2024, but here are some positive indicators and some challenges you must know:
- 88% of home buyers used a home inspector, showing it’s a standard part of the process.
- 26% of home inspectors only stay on the job for 1-2 years, indicating high turnover and the potential for technology adoption to improve efficiency.
- The top 10% of inspectors earn over $80,000, indicating potential for specialization and premium services in 2024.
- Compared to other businesses, the startup costs for a home inspection business are relatively low, and they typically range from $5,000 to $20,000.
- Job growth for home inspectors is projected to be faster than average, at 8% for the next 5 years.
Must read: Is Being a Home Inspector Hard?
Home Inspection Industry Trends
Here are some upcoming trends shaping the future of the home inspection industry in 2024:
1. Market Growth
The real estate market continues to grow, and so does the home inspection industry. These two are naturally linked, as a growing real estate market fuels the demand for home inspections.
2. Technological Advancements
Technology plays an important role in home inspections. The 2024 will be the year of innovations like reporting software powered by A.I, drone-assisted inspections, smart home evaluation tools and more to drive industry growth.
3. Green Home Inspections
The demand for green home inspections is surging due to the rise of environmentally friendly people. These inspections would evaluate a property’s environmental impact, including energy efficiency and water usage, and how it aligns with the sustainability aspirations of many homeowners.
4. Pre-listing Inspections
Pre-listing home inspections are gaining popularity. Sellers are opting for these inspections before listing their homes for sale because it helps to identify potential issues in advance for smoother and faster real estate transactions.
5. Investor Interest
Investors are turning to home inspections as a vital part of their due diligence process. They rely on inspections to assess the condition of properties they’re considering for purchase, ensuring their investments are sound.
Home Buying Trends, Statistics and Demographics in 2024
It’s always important to understand the demographics, trends and behaviour of home buyers and sellers if you are in the home inspection industry. Here are some of the trends you must know:
- The average homebuyer in 2024 is expected to be 34 years old.
- The majority of homebuyers are expected to be millennials.
- The average down payment for a home in 2024 is expected to be 10%.
- The average mortgage interest rate in 2024 is expected to be between 6.5 to 6.8%.
- The average home price in the US is expected to reach $385,000.
- 14% of buyers choose inspectors based on recommendations from friends/family, and 10% from the seller.
Real Estate Statistics
Finally, here are some more real estate statistics to help you prepare to understand the upcoming market trends:
- The housing market in the United States is expected to remain strong in 2024, with home prices continuing to rise.
- The inventory of available homes for sale is expected to remain low, putting upward pressure on prices.
- Mortgage interest rates are expected to remain relatively low, making home purchases more affordable for buyers.
- In 2024, the millennial generation is expected to remain a major driver of the housing market.
- Home inspections have increased by 6% so far in 2022, the largest increase in any year since the pandemic.
- Only 14% of buyers have waived a home inspection, the lowest percentage in five years.
Conclusion
The home inspection industry is on track for significant growth in 2024 and beyond, which is driven by a strong real estate market, technological advancements, and shifting in buyer demographics due to the rise in young millionaires.
But always remember that the key to success in the home inspection industry is not just knowledge, but the ability to pivot and provide value to clients in a constantly evolving housing market.
