Pedro’s List is set to revolutionize Mexico’s home improvement market

Quick quiz: Which country has the highest homeownership rate — Canada, the US, or Mexico?

Ten points if you said Mexico.

With an ownership rate of around 80%, Mexico is well above the United States and Canada, neither breaking 70%.

Next question: Out of Canada, the US, and Mexico, which country doesn’t have a developed service industry for homeowners?

That’s right — the answer is Mexico again.

There are no home improvement-focused online service-provider platforms for Mexico’s $12.3 billion home improvement market.

The home improvement and repair industry has long been a bastion of small mom-and-pop businesses. Only relatively recently did online platforms come along, making it easier for customers to find qualified, well-reviewed service providers.

Before these platforms came along, the lack of a centralized directory —especially a way to verify professionalism and quality — was a massive issue for homeowners.

There’s a reason the rule of thumb with home improvement and repairs is to expect any quote to cost twice as much and take twice as long when all is said and done. Until recently, word of mouth was the only way to discover good service providers.

For the same reason, it took a lot of work for quality providers to spread the word. They might be the best drywallers in the business, but without a huge marketing budget, companies had to rely on satisfied customers who knew others looking for the same service.

This is where online platforms change the game. Customers get to see everyone in their area that provides a service — along with reviews and samples of their work. Providers get their names in front of customers with their work vetted without needing expensive marketing efforts.

Online platforms create an industry that is more efficient and beneficial to all. Customers get to see all their options and reviews, and good contractors see their business expand without relying on outsized marketing budgets.

However, no one has brought these services to Mexico’s home improvement market.

Mexico’s untapped home improvement market

As noted above, Mexico boasts an impressive 80% homeownership rate — the best in North America.

However, Mexico is relatively unique in another way.

In Mexico, tenants are responsible for any home repairs or improvements a rental may need. That effectively means 100% of the residential real estate market are potential customers for home service providers. Large leasing companies don’t have on-staff plumbers or electricians, and residences don’t wind up neglected by tenants without any skin in the game. Instead, every dwelling receives the same attention that comes with homeownership.

This tenant responsibility difference is part of why Mexico’s home improvement sector is so large. But there’s another reason Mexico is a fertile country for these services. Mexico’s GDP is growing rapidly — outpacing US growth, in fact. At around $1.3 trillion, Mexico’s GDP is already larger than Spain, Saudi Arabia or Turkey. Mexico has the 15th-largest GDP in the world and is one of the top 20 countries without a home improvement sector organized on a platform.

What’s more, Mexico is a comparatively egalitarian society. Fifty percent of Mexican residents qualify as middle-class, and 30% qualify as upper-class. That’s part of the reason why Mexico has such high ownership numbers. Simply put, more people can afford houses, and more people can afford home improvements and repairs as well.

Mexico’s home improvement platform has arrived

Pedro’s List is currently being rolled out in the 16 largest Mexican metro areas today.

It’s modeled after other successful home improvement and repair platforms, providing a central place to find service providers while simultaneously vetting them for potential customers.

This is a service that comes with a substantial profit margin. Once the software is in place — and Pedro’s List has already developed the software — running the platform isn’t resource-intensive or costly. Much of the content comes from users themselves, meaning that the value of platforms like these grows over time. It also means that there is a huge first-mover advantage.

Pedro’s List isn’t just the first home improvement and repair platform to launch in Mexico. Currently, there is no other company or competitor on the horizon. This creates a straightforward expectation that Pedro’s List will dominate Mexico’s $12.3 billion home improvement market over the coming years.

With Mexico’s economy strong and growing stronger, this is a tremendous time to get exposure to Mexico’s real estate market, and Pedro’s List is an excellent place to start.