Homeowners are demanding more convenience, personalization, and trust when hiring contractors, according to ServiceTitan’s new "2025 Consumer Trends in the Trades Report."

Developed with Synchrony and Visa, the study reveals shifting spending habits and demographic forces—such as the rise of younger, more diverse homeowners and women as key decision-makers—that are reshaping how trade businesses must engage, serve, and grow in a competitive market.

“Residential contractors are constantly looking for ways to differentiate themselves and drive growth in an extremely competitive market,” said Chris Petros, Chief Operating Officer at ServiceTitan. “Homeowners today have high expectations for customer service, and expect options tailored to their preferences. Whether that’s communicating with a contractor over the phone or through text, paying with a credit card or from their phone, or getting real-time updates on the status of a job, they want flexibility and transparency. The businesses that lead with empathy, offer choices, and deliver consistently great experiences will earn the trust of consumers, along with their repeat business.”

Report Highlights:

Generational trends: While consumer spending is largely driven by older generations, a powerful undercurrent is reshaping the future. Today, younger generations are demonstrating a notably stronger tendency than their predecessors to invest in home improvement.

Women as key decision-makers: Women are the primary decision-makers in 65% of remodeling projects in the U.S.1 and they value trust, branding, and clear pricing options in choosing a contractor.

Affluent opportunity: Households earning $100K+ annually are more likely to invest in planned improvements, offering growth potential for contractors who position themselves effectively.

Rising diversity: The next generation of homeowners is significantly more diverse. Among Gen Z customers, 48% identify as non-white.  Communities of color are projected to drive all net new homeownership through 2040.

Digital engagement: 80% of homeowners begin their search online, yet many report dissatisfaction with the availability of trustworthy reviews, financing info, and digital checkout.

Flexible payments are essential: 41% of consumers actively seek financing options.**  ServiceTitan data shows contractors who offer financing see 12% higher close rates and 13% higher average ticket sizes.

Credit cards and online payments on the rise: Today, 94% of home service customers own a credit card, and 90% use them regularly. Younger consumers are also pushing a shift toward online payments and SMS-based invoicing.

Limited English Proficiency Households are growing: According to the Urban Institute, limited English proficient (LEP) people are those with a limited ability to speak, read, write or understand English.

From 1980 to 2021 the number of LEP households almost doubled, from about 2% of the population to nearly 4%.4  Among those LEP households, Spanish is the most frequent language spoken at home, representing more than 9 million individuals in 2021 and about 70% of LEP population overall in the U.S.  Chinese is second, at about 7% of LEP households.  Vietnamese represents about 4% of LEP households.5

“Checks are fading fast, falling from 59 percent of home-service payments in 2015 to 36 percent in 2024,” said David Weinshel, vice president of emerging segment sales at Visa. “By connecting business owners to a modern payment experience, Visa can help contractors meet consumers where they are—online, in-home, or tap-to-pay—delivering speed, security and trust.”

The report underscores that homeowners want more than just a quick fix, they want a five-star experience. From brand presence to digital convenience to flexible payment options, modern customers weigh multiple factors when choosing who to hire.