Building Inspection Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,600 building inspection service providers in the US evaluate all aspects of building structure and component systems and prepare reports on the physical condition of a property. In addition to inspection services, firms may provide expert witness testimony in court cases. Some building inspectors, especially home inspectors, are self-employed and may work part time.
Liability for Errors
Building inspectors expose themselves to liability related to errors or omissions when performing an inspection.
Dependence on Referrals
Referrals from real estate agents are in important source of business for home inspectors.
Industry size & Structure
The average building inspection services provider operates out of a single location, employs about 3 workers, and generates $592,000 annually.
- The building inspection services industry consists of about 7,600 firms that employ about 23,400 workers and generate about $4.5 billion annually.
- The industry is fragmented; the top 50 companies account for about 25% of industry revenue.
- Large firms may offer a wide range of testing, inspection, and certification services, including building inspection services. National Field Representatives offers property inspection service throughout the US. National Property Inspections is a large franchise operator. Most firms operate regionally.
- Some building inspectors, especially home inspectors, are self-employed and may work part time.
Industry Forecast
Building Inspection Services Industry Growth
Recent Developments
Mar 17, 2025 - Buyers Gain Leverage in Housing Market
- The advantage in the US housing market may be shifting from sellers to buyers, according to The Wall Street Journal. Bidding wars are less common as competition over homes on the market has waned, which is giving potential buyers more leverage. On average, existing homes are selling for 2% below the asking price, according to Redfin. The reduction in seller pricing power is partly due to more homes coming onto the market. According to Redfin, new listings were up 5% in January compared to a year earlier. Houses are also staying on the market longer, creating an advantage for buyers. In January, the typical home sale had been on the market for two months, marking the most extended period since February 2020, according to Redfin.
- Affordability in the US housing market is expected to improve slightly in 2025 and 2026, but strides will be due to falling interest rates rather than lower home prices, according to a recent Reuters poll of property market insiders. Nearly two-thirds (62%) of those surveyed in February 2025 said that affordability conditions for first-time home buyers would improve over the coming year. Polling medians suggested survey respondents expect average 30-year mortgage rates to drop to 6.76% in 2025 and 6.32% in 2026. While home prices are expected to continue rising, the pace of price growth will slow. Moody’s Analytics estimates there is a shortage of about 2.6 million units. Homeowners who locked in low mortgage rates before they began rising are reluctant to sell, leaving potential buyers relying more on the new home market.
- A lack of affordability in the new, single-family home market could reduce demand for inspection services for new residential construction projects. In 2025, nearly 75% of US households are unable to afford a median-priced new home, according to the National Association of Home Builders. Given a median new home price of $459,826 and a 30-year mortgage rate of 6.5%, more than 100 million US households are priced out of the market. In 23 US states and Washington DC, more than 80% of households cannot afford a median-priced new home, suggesting a significant discrepancy between home prices and household incomes.
- Many US homeowners are seeing their housing costs spiral higher amid rising insurance rates and property taxes, according to the Wall Street Journal. More frequent natural disasters and higher costs for home repairs have prompted insurance companies to increase premiums, while soaring home values have led to higher property taxes. According to Intercontinental Exchange, 32% of the average single-family mortgage payment was for home insurance and property taxes in September 2024, marking the highest rate for these costs since 2014. For about 9% of homeowners, insurance and taxes account for more than half of their monthly mortgage payments. Higher tax and insurance costs combined with elevated home prices and interest rates have prompted many would-be homebuyers to quit looking. A weak housing market can reduce demand for home inspections.
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