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Homeowner Decision Guide (Statistics Edition): How Americans Actually Choose a Contractor in 2026
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Homeowner Decision Guide (Statistics Edition): How Americans Actually Choose a Contractor in 2026

A data-driven look at how homeowners research, vet, trust, and hire home service professionals — backed by 30+ statistics from BrightLocal, Angi, the BBB, the FTC, and Harvard.

Matthew Luke
Matthew Luke
June 25, 202612 min read
Homeowner StatisticsHiring a ContractorOnline ReviewsTrust & VerificationHome Services Data

Hiring someone to work on your home is one of the highest-stakes, lowest-information decisions most people make. You're inviting a stranger onto your property, handing over a deposit, and trusting that the work will be done safely and to code. So how do homeowners actually make that call in 2026 — and where does it go wrong?

This is the Statistics Edition of the homeowner decision guide: a data-first walkthrough of how Americans research, compare, trust, and ultimately hire home service professionals, grounded entirely in published research from sources like BrightLocal, Angi, the Better Business Bureau, the Federal Trade Commission, and Harvard's Joint Center for Housing Studies. Every number below is cited at the bottom, and you can download the full dataset as a spreadsheet.

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The one-sentence takeaway: In 2026, homeowners decide with their screens first and their wallets second — 93% read online reviews before choosing a local business, but trust in those reviews is falling fast, which makes verifiable proof (licenses, background checks, real photos) the new tiebreaker.

The decision at a glance

Before we go deep, here are the four numbers that frame the entire homeowner journey.

93%read online reviews before choosing a local business
$12,472average U.S. homeowner project spend in 2025
$1,800median loss in a home-improvement scam
$509Bsize of the U.S. home remodeling market

Stage 1: Research — homeowners start on a screen

The modern hiring journey begins long before a phone call. According to BrightLocal's 2025 Local Consumer Review Survey, 93% of consumers read online reviews before choosing a local business, and a homeowner-specific survey reported by ACHR News found 91% of homeowners rely on online reviews before picking a contractor.

But not every platform carries equal weight. Google has become the default front door for contractor research.

Where homeowners read reviews
Share of consumers who read reviews on each platform
Source: BrightLocal Local Consumer Review Survey, 2025

The practical lesson for homeowners: if you're only checking one source, you're seeing a sliver of the picture. The practical lesson for pros: your Google Business Profile is no longer optional. (We break the platform mechanics down in our home renovation cost statistics report and across the HomeProBadge statistics hubs.)

Stage 2: Trust — reviews still rule, but the floor is shifting

Here's the most important trend in the entire dataset. For years, online reviews were treated as gospel — but that faith is eroding.

Trust in reviews is falling fast
Share who trust online reviews as much as a personal recommendation
Source: BrightLocal Local Consumer Review Survey

In 2020, 79% of consumers said they trusted online reviews as much as a personal recommendation. By 2025 that figure had collapsed to 42%. Fake reviews, AI-generated text, and review-gating have made consumers more skeptical of star ratings alone.

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Why this matters: When star ratings lose their shine, homeowners look for harder signals — proof that a business is licensed, insured, background-checked, and who it claims to be. Verifiable identity is becoming the trust signal that reviews used to be.

That skepticism is exactly why HomeProBadge exists: an identity-verified, background-checked badge gives homeowners a signal that can't be faked with a five-star burst. The reputation research is consistent — homeowners reward proof. In Housecall Pro's 2025 survey of 1,040 U.S. homeowners, 70% said they'd pay more for a pro with a better service reputation.

Stage 3: Compare — what tips the decision

Once a homeowner has a shortlist, what actually closes the deal? The 2025 Housecall Pro data shows the modern buyer expects a digital, transparent, proof-rich experience.

What homeowners expect before they hire
Share of U.S. homeowners agreeing with each statement (n = 1,040)
Source: Housecall Pro Home Service Customer Service Report, 2025

A few patterns jump out:

  • Transparency wins. With 77% frustrated by hidden costs and 93% saying instant estimates sway them, the pro who quotes clearly and fast has a structural advantage.
  • Proof beats promises. 68% of homeowners now expect photo or video proof of completed work — the same before/after documentation HomeProBadge builds into every verified job portfolio.
  • Convenience compounds loyalty. 68% say they'd hire the same company again, and 73% would refer after a great experience — so the first job is really a bid for the next five.
  • Stage 4: Spend — what's actually at stake

    Home services is not a small-ticket category. Homeowners are spending serious money, and the macro market is enormous.

    Average annual home project spend per U.S. household
    All projects: improvements + maintenance + emergency repairs
    Source: Angi State of Home Spending

    After a dip in 2024, average spend ticked back up to $12,472 in 2025 (a 3.5% increase), with households completing an average of 10 projects for the year. Maintenance spending climbed to $2,041 per household, while the average emergency repair cost $1,143 — and emergencies are exactly the moments when homeowners hire fastest and vet least.

    Zoom out and the stakes are staggering: Harvard's Joint Center for Housing Studies puts the U.S. home remodeling market at roughly $509 billion in 2025, projected to reach a record $524 billion in early 2026.

    ⬇  Download every figure on this page (.xlsx)

    Stage 5: Risk — where the decision goes wrong

    For all the research homeowners do, a lot of money still ends up in the wrong hands. The data on fraud is sobering.

    $12.5Btotal U.S. consumer fraud losses reported in 2024 (FTC)
    $1,800median loss in a home-improvement scam (BBB)
    5home-improvement's rank among the BBB's riskiest scams
    25%year-over-year jump in total reported fraud losses

    The FTC's Consumer Sentinel Network logged more than $12.5 billion in reported fraud losses in 2024 — up 25% year over year. Home-improvement contractor scams ranked as the fifth-riskiest scam category in the BBB's 2024 Scam Tracker Risk Report, with a median loss of $1,800 per victim. The classic playbook: a too-good deposit, "found" problems that inflate the price, or a contractor who vanishes after the check clears.

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    The verification gap: The single most effective defense is also the most skipped step — confirming a pro is who they say they are before money changes hands. That's the entire premise of the HomeProBadge verification flow: identity-verified and background-checked, re-verified annually.

    This risk is compounded by a labor squeeze. The Associated Builders and Contractors estimates the construction industry is short roughly 500,000 skilled workers and needs to attract 439,000 new workers in 2025 alone. When qualified pros are scarce, unqualified and unlicensed operators rush to fill the gap — raising the premium on verified, trustworthy professionals.

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    Putting it together: a homeowner's data-backed checklist

    The statistics converge on a simple, repeatable process:

  • Read widely, not narrowly. With trust in reviews down to 42%, treat star ratings as a starting filter, not a verdict — and check more than one platform.
  • Demand proof, not promises. 68% of homeowners now expect photo/video proof; ask for it, and verify license and insurance independently.
  • Insist on transparent, written estimates. 77% of homeowners regret hidden costs — get the scope and price in writing before work starts.
  • Verify identity before you pay. A median scam costs $1,800; a verification check costs minutes.
  • Reward the pros who earn it. 73% of homeowners refer after a great experience — your referral is the most valuable thing you can give a trustworthy pro.
  • Hiring a pro — or trying to become the obvious choice?

    HomeProBadge gives homeowners verified, background-checked professionals and gives pros the trust signals that win jobs. Identity-verified. Background-checked. $9.95/year.

    Get Started Free →

    Frequently asked questions

    What percentage of homeowners read reviews before hiring a contractor?
    93% of consumers read online reviews before choosing a local business, according to BrightLocal's 2025 Local Consumer Review Survey, and a homeowner-specific survey reported by ACHR News found 91% rely on online reviews before picking a contractor.
    Do homeowners still trust online reviews?
    Less than they used to. The share of consumers who trust online reviews as much as a personal recommendation fell from 79% in 2020 to 42% in 2025 (BrightLocal). That's why verifiable signals — licensing, insurance, and identity/background checks — are becoming the decisive trust factor.
    How much does the average homeowner spend on home projects?
    U.S. homeowners spent an average of $12,472 across about 10 projects in 2025, up 3.5% from $12,050 in 2024, per Angi's State of Home Spending. The broader U.S. remodeling market was roughly $509 billion in 2025 (Harvard JCHS).
    How common are home-improvement scams?
    Home-improvement contractor scams were the 5th-riskiest scam category in the BBB's 2024 Scam Tracker Risk Report, with a median loss of $1,800. Overall, the FTC logged more than $12.5 billion in reported fraud losses in 2024, up 25% year over year.
    What's the best way to avoid hiring the wrong contractor?
    Verify before you pay. Check reviews across multiple platforms, get a transparent written estimate, ask for photo/video proof of past work, and confirm the pro's identity, license, and insurance independently. A HomeProBadge-verified professional is identity-verified and background-checked, re-verified every year.

    Methodology & sources

    All figures on this page are drawn from published, primary research and are attributed below. Survey figures from Housecall Pro reflect a survey of 1,040 U.S. homeowners conducted October 23, 2025. Spending figures are from Angi's State of Home Spending reports. Market-size figures are from Harvard JCHS's Leading Indicator of Remodeling Activity (LIRA). Nothing on this page is estimated or invented; where a single survey is the source of multiple data points, it is cited once.

    Download the data

    This is a living statistics page. Every figure above is available as a structured spreadsheet, with each row carrying its primary source for independent verification.

    ⬇  Download the underlying data (.xlsx)

    Changelog

    First published — June 2026
    Initial release with 30+ verified statistics on homeowner research, trust, spending, and scam risk. Data vintage: 2024–2025 survey cycles.
    Next scheduled update — 2027
    Annual refresh planned to incorporate the 2026 BrightLocal, Angi, BBB, and FTC reporting cycles.
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    Disclaimer

    Not legal or professional advice. The information in this article is provided for general educational purposes only and does not constitute legal, financial, regulatory, or professional advice of any kind. HomeProBadge and ScreenForge Labs LLC are not law firms and do not provide legal services. Nothing on this site creates an attorney-client relationship. Always consult a licensed attorney, contractor, or qualified professional in your jurisdiction before making decisions based on information found here.

    AI-assisted content. This article was researched and drafted with the assistance of artificial intelligence. The author, Matthew Luke, contributed his perspectives, editorial judgment, and subject-matter opinions to shape the content — but portions of the writing, research, and structure were generated or refined using AI tools. We believe in transparency about how our content is made.