Rising Demand: What's Behind the Surge in Home Warranty Services?
The demand for home protection plans is experiencing a significant surge, driven by concerns about increasing maintenance costs and rising homeownership expenses. According to market research, the number of home warranty policies has increased by over 15% in the past year alone.
- Growing Maintenance Costs: Homeowners are feeling the pinch as their homes require more frequent repairs and replacements, leading them to seek protection plans to safeguard against unexpected expenses.
- Rising Homeownership Expenses: As housing costs continue to rise, homeowners are seeking ways to manage these increased expenses. Home warranty services provide a convenient solution for this purpose.
Market Trends and Insights
The home warranty service market is expected to grow significantly in the coming years, driven by increasing demand from homeowners seeking protection against maintenance and repair costs. The market research firm, IBISWorld, predicts that the home warranty industry will experience a 5% annual growth rate over the next five years.
| Company | Revenue (2020) | Growth Rate (%) |
|---|---|---|
| Prudential Insurance | $10.3 billion | 4% APY |
| American Family Mutual Company | $5.8 billion | 6% APY |