The Future of Home Services Startups

Quick note: We do lots of research for new ideas at Neighborhood Studios. In 2022 we began publicly sharing our research. We’ll pursue some of these ideas, but many we won’t. Either way we want more founders to build products to make our day-to-day lives better. If you are working on ideas around this problem, we’d love to chat — goodstuffnearby@neighborhoodstudios.com.

Owning a home has always been synonymous with responsibility — keeping up with repairs, maintenance, and unexpected breakdowns. But as a new wave of homeowners emerges, many of whom are coming from luxury-style apartments with concierge services, expectations around home care are shifting. These homeowners are accustomed to seamless, on-demand living, where property management takes care of everything from leaking faucets to appliance maintenance. Now they want the same experience in their own homes.

At the same time, another trend is shaping the future of home services: people are staying in their homes longer, and homes in major cities are getting older. The median homeownership tenure has increased significantly over the past two decades, rising from six years in 2005 to over 13 years in 2023. In many major cities the average home is now over 80 years old. With aging electrical systems, outdated plumbing, and general wear and tear, proactive home management is becoming a necessity rather than a luxury.

Enter the next evolution of home services: automated, proactive, and subscription-based maintenance — putting home upkeep on autopilot. Instead of waiting for something to break, startups are introducing models where homes are monitored, maintained, and even repaired before an issue arises. Just like cars have moved from reactive oil changes to AI-driven diagnostics, homes are following suit.

This shift is being driven by several factors:

1. A new class of homeowners. Millennials and Gen Z buyers, many of whom have lived in full-service luxury apartments, expect a similar level of convenience in homeownership.
2. Longer homeownership and aging housing stock. With homeowners staying put longer, the need for consistent, preventative maintenance has never been greater. In 2021, more than 50% of U.S. homes were over 40 years old, meaning they require more upkeep than newer homes.
3. Advancements in AI & IoT. Smart home devices can now predict failures and proactively schedule repairs, making maintenance more efficient.
4. The rise of home maintenance memberships. Companies like Honey Homes and Flat offer dedicated home management on a subscription basis, eliminating the hassle of finding reliable service providers.
5. The labor shortage in skilled trades. With fewer handymen and contractors available, technology is filling the gap by streamlining diagnostics, scheduling, and service execution.

The home services industry, once a chaotic mix of Craigslist listings and word-of-mouth referrals, is now heading toward a fully automated, AI-powered model. But while concierge-style maintenance appeals to first-time homeowners seeking a hassle-free experience, it’s also becoming essential for long-term homeowners with aging properties. Whether driven by convenience or necessity, the home of the future will schedule its own repairs, alert professionals when maintenance is needed, and offer homeowners a concierge-style experience.

Landscape

Home Services — Encompasses tasks such as cleaning, repairs, renovations, landscaping, and appliance maintenance.

• Example: Angi (formerly Angie’s List): Founded in 1995, Angi is one of the most well-known platforms in the home services industry. It connects homeowners with vetted service providers for everything from plumbing and electrical work to landscaping and home renovations. The platform offers verified reviews, cost estimates, and scheduling tools, helping users find reliable contractors.

PropTech — The integration of property technology, including smart home devices and IoT systems, is reshaping service demands.

• Example: Home365: Established in 2016, Home365 offers AI-driven property management solutions for real estate investors. By predicting maintenance issues and automating operations, it ensures consistent rental income and efficient property upkeep.

Gig Economy & On-Demand Labor — Platforms like TaskRabbit and Angi have introduced flexible service delivery models.

• Example: Thumbtack: Founded in 2008, Thumbtack is an online marketplace that connects consumers with local professionals for various projects, including home improvement, event planning, and wellness services.

FinTech & Embedded Payments — The incorporation of seamless financing options facilitates major home projects.

• Example: Bilt Rewards: Introduced in 2021, Bilt Rewards is a loyalty program that allows renters to earn points on rent payments. These points can be redeemed for travel, fitness classes, or even future home down payments, integrating financial benefits into regular expenses.

Home Automation & AI — Advanced systems predict and address service needs proactively.

• Example: August Home: Founded in 2013, August Home is a smart home security company specializing in keyless entry solutions. Its smart locks and doorbell cameras enable users to control and monitor home access remotely via a mobile app.

History: The Evolution of Home Services

The home services industry has evolved dramatically over the past few decades, moving from an informal, word-of-mouth economy to a tech-driven, AI-powered ecosystem. This transformation has unfolded in distinct phases, shaped by changes in consumer behavior, technological advancements, and the rise of digital marketplaces.

Phase 1: The Era of Classifieds and Word-of-Mouth (1990s to Early 2000s)

Before the internet was widely adopted, homeowners relied on local directories like the Yellow Pages, newspaper classifieds, and recommendations from neighbors to find service providers. Finding a plumber, handyman, or house cleaner was often a frustrating and slow process. Prices were rarely transparent, and service quality varied greatly.

In the early 2000s, Craigslist (founded in 1995) began disrupting this model by offering free, digital classifieds where independent contractors and small businesses could list their services. While this made finding local providers easier, the platform lacked mechanisms for verifying quality and reliability, leading to trust issues.

This period was defined by low-tech, hyper-local service discovery, but lacked reliability, standardization, and efficiency.

Phase 2: The Rise of Aggregators and Ratings (Mid-2000s to Early 2010s)

As the internet became mainstream, new platforms emerged to bring more structure to home services. This era saw the birth of Angie’s List (1995) and HomeAdvisor (1998), which introduced customer reviews, ratings, and membership-based models to help homeowners find reliable service providers.

These platforms provided a much-needed layer of transparency. However, they still relied on a static, directory-based approach — essentially an online Yellow Pages with reviews. Booking was not seamless, and homeowners had to initiate phone calls, negotiate pricing, and manage scheduling themselves.

Home services were becoming more transparent and structured, but still lacked real-time booking, automation, or seamless digital transactions.

Phase 3: The On-Demand & Gig Economy Boom (2010s)

The explosion of the gig economy fundamentally reshaped home services. Companies like TaskRabbit (2008) and Thumbtack (2008) made hiring a handyman or cleaner as easy as ordering an Uber.

At the same time, larger players like Angie’s List and HomeAdvisor merged into Angi (2017), attempting to create a one-stop shop for home services. Meanwhile, Amazon Home Services (2015) launched to offer vetted professionals for installations and repairs alongside Amazon product purchases.

Home services became more accessible, app-driven, and convenient, but gig work models often struggled with service quality and consistency.

Phase 4: AI, Automation & Subscription-Based Services (2020s — Present)

Companies like Honey Homes (2021) and Flat (2021) introduced home maintenance memberships with recurring checkups.

AI-driven platforms like Frontdoor (2022 spin-off from ServiceMaster) and Super have pushed home warranty services into the digital age, helping homeowners diagnose problems virtually before dispatching technicians.

Our current era is about proactive maintenance, automation, AI-driven diagnostics, and seamless home care memberships rather than just one-off fixes.

Texture of the Problem

• Fragmentation. The market lacks standardized pricing and service quality, leading to inconsistent customer experiences.
• Trust & Reliability Issues. Consumers often face challenges in finding dependable service providers.
• Skilled Labor Shortages. There’s a notable deficit of professionals in specialized trades.
• Manual & Inefficient Processes. Traditional booking, communication, and payment methods are outdated and cumbersome.
• Scalability Challenges. Many local services struggle to expand beyond their immediate regions.

Novelty: Emerging Innovations

Several startups are addressing these challenges with innovative approaches:

Honey Homes

• Founded: 2021
• Funding: Raised over $21 million, including a $9.25 million Series A-1 round in May 2024 led by Era Ventures.
• Overview: Offers a membership-based home maintenance service, providing homeowners with a dedicated handyperson for regular visits. The service emphasizes trust and convenience, ensuring consistent quality and reliability.

Birdwatch

• Founded: 2022
• Funding: Raised a $3 million seed round at the end of 2023.
• Overview: Birdwatch offers a home maintenance platform that connects homeowners with professionals for various repair and upkeep tasks. Operating in both the Washington, D.C., and Philadelphia areas, the company has rapidly expanded its team to nearly 30 employees, aiming to address common homeownership challenges with a tech-driven approach.

Puls

• Founded: 2015
• Funding: Raised $50 million in a Series C round in August 2018, led by Temasek Holdings.
• Overview: Delivers on-demand in-home technical support and repair services, specializing in household appliances and smart devices. Customers can book same-day appointments for various services, enhancing convenience and efficiency.

What’s Next?

The home services industry is shifting from reactive, one-time repairs to proactive, ongoing maintenance. Homeowners increasingly expect seamless, predictable upkeep, similar to the full-service amenities provided in luxury apartment buildings. At the same time, homes are getting older, and people are staying in them longer than ever. These converging trends are giving rise to new service models, automated maintenance schedules, and tighter integration between home care providers and smart home ecosystems. Whether homeowners are seeking effortless living or simply working to preserve their aging properties, the future of home services will be proactive, tech-enabled, and deeply embedded into daily life.

Here are the key trends shaping the future of home services:

Proactive & Scheduled Maintenance — Home Care Without the Hassle

For decades, homeowners have had to wait for things to break before scheduling repairs. Now, home service companies are moving toward scheduled, recurring maintenance plans that prevent issues before they arise.

• Seasonal maintenance schedules: Instead of homeowners calling multiple vendors for yearly HVAC tune-ups, gutter cleaning, or plumbing inspections, home service platforms will automate these schedules and handle them proactively.
• Home health checkups: Just like annual physicals for people, homes will receive regular professional inspections to identify wear and tear before small issues turn into costly problems.
• Convenience-first service models: Homeowners want frictionless maintenance — meaning no haggling, no waiting for unreliable contractors, and no searching for last-minute help. Companies offering pre-planned, subscription-based home care will dominate the industry.
• Example: Birdwatch — This startup offers a tech-enabled home maintenance platform that connects homeowners with professionals for repairs and upkeep. Operating in Washington, D.C., and Philadelphia, Birdwatch provides an on-demand service model designed to simplify homeownership through proactive maintenance and reliable service providers.

Home Care Memberships — The Rise of Concierge-Style Services

Just as gym memberships and streaming subscriptions have become the norm, home services are moving toward membership-based care plans. These services offer a dedicated team of professionals who regularly check in on your home, perform preventive maintenance, and handle unexpected repairs.

• Eliminating the need for homeowners to coordinate services: Instead of calling a plumber, electrician, and handyman separately, a single membership provides all-in-one coverage.
• Predictable pricing: Unlike traditional home services, which often come with unpredictable, high-cost emergency repairs, membership models allow homeowners to spread costs evenly over the year.
• Personalized home care plans: Different homes have different needs. Membership models will adjust based on home age, size, location, and owner preferences — some may need frequent HVAC servicing, while others prioritize exterior maintenance.
• Example: Honey Homes — This company offers a dedicated handyman on a subscription model, ensuring that homeowners always have someone they trust for routine maintenance, small repairs, and home improvement projects.

Smart Home Integration — More Automated and Connected Maintenance

With more homeowners adopting smart thermostats, water monitors, and security systems, home services will increasingly be tied into the smart home ecosystem. This will allow for better coordination between service providers and the home itself.

• Seamless scheduling: Devices like Nest thermostats and Ring security systems will automatically recommend and schedule servicing based on real-time performance and homeowner preferences.
• Automated service access: Smart locks (like August Home) will allow trusted service professionals to access homes securely while homeowners are away, eliminating scheduling conflicts.
• Remote troubleshooting & maintenance: Homeowners won’t need to wait for a technician to diagnose issues — many problems will be identified remotely, reducing unnecessary service calls.
• Example: Puls — This company provides on-demand repair services for smart home devices and home appliances, ensuring that homeowners can quickly resolve issues with their tech-enabled homes.

Final Thoughts: The Home Services Industry is Becoming Hands-Free

The future of home maintenance is all about convenience, predictability, and proactive care. Homeowners will no longer need to scramble to find contractors or worry about unexpected repairs — instead, they’ll have a dedicated team handling their home year-round.

Within the next decade, we’ll see more subscription-based home management plans, seamless scheduling, and fully integrated maintenance solutions that make homeownership feel as effortless as renting a luxury apartment.

If you are a founder exploring any of these areas, we’d love to chat — goodstuffnearby@neighborhoodstudios.com.

About Neighborhood Studios

Neighborhood Studios is a venture studio that partners with tenacious founders to build hyperlocal startups from the ground up.

If you are building a business in any hyperlocal space or if any of this really grabs you, we want to hear from you. Drop us a note at goodstuffnearby@neighborhoodstudios.com.

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