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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 6,700 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 $491,000 annually.
- The building inspection services industry consists of about 6,700 firms that employ about 22,200 workers and generate about $3.3 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
Coronavirus Update
Apr 7, 2022 - Interest Rates Rise Amid Tight Housing Inventory
- Residential construction will decrease in 2022, but private non-residential construction is set to rebound as economic reopening drives the need for remodeling and rebuilding, according to multinational banking and financial services corporation ING. Government infrastructure investment will add an extra layer of spending that can mitigate the headwinds from housing and leave overall spending down 0.5% in 2022 after 2021's 7% increase.
- One of the most notable changes during the coronavirus pandemic is a population migration out of larger cities like New York and Los Angeles to smaller cities like Denver and Miami. According to analytics firm CoreLogic, population losses during 2020 were largest for New York, Los Angeles, and San Francisco. Experts say that the shift will have far-reaching impacts on cities both big and small - and on building inspection services - when it comes to urban development, real estate prices, and traffic flow.
- The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signings, decreased 4.1% to 104.9 in February 2022 compared to the prior month, according to the National Association of Realtors (NAR). An index of 100 is equal to the level of contract activity in 2001. "Pending transactions diminished in February mainly due to the low number of homes for sale," said Lawrence Yun, NAR's chief economist. "Buyer demand is still intense, but it's as simple as ‘one cannot buy what is not for sale.”
- New single-family home sales decreased 6.2% month over month and declined 7.1% year over year in February 2022, according to the US Department of Commerce. According to the National Association of Realtors (NAR), sales of previously-owned homes fell 7.2% month over month and 2.4% year over year in February 2022. The median existing-home price for all housing types increased 15% year over year to $357,300. "Housing affordability continues to be a major challenge, as buyers are getting a double whammy: rising mortgage rates and sustained price increases," said Lawrence Yun, NAR's chief economist. "Some who had previously qualified at a 3% mortgage rate are no longer able to buy at the 4% rate.”
- Industry experts say that the digitization of licensing, permitting, and inspection services, which account for a substantial percentage of state budgets, represents the next phase of digital transformation in the public sector, and the coronavirus outbreak is accelerating the process. For example, the city of Oakland, CA, has launched a new application that allows people to schedule building inspections online. The Oakland Building Inspection Request application is expected to make it easier to schedule inspections and help the Planning and Building Department operate more efficiently.
Get A Demo
Vertical IQ’s Industry Intelligence Platform
See for yourself why nearly 40,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.
Build valuable, lasting relationships by having smarter conversations -
check out Vertical IQ today.