Landscape Architectural Services NAICS 541320

Jul 7, 2025 - Green Industry Bookings Drop, Revenue Rises

• Providers of lawn care and landscaping – “Green” services – have seen bookings gradually soften in 2025 after a strong start in January, according to the recently released Home Service Economic Report by Jobber, a job tracking and customer management software firm. After an 8% year-over-year increase in bookings in January, demand dropped 14% in February and posted a modest 1% gain in March. Unfavorable weather conditions and consumer hesitancy to take on non-essential projects likely led to the Q1 drop in green services demand. However, while new bookings fell, green revenues rose 6% year-over-year in Q1 2025, driven by a 5% increase in average invoice size. Bundling of seasonal service offerings and modest price increases helped boost revenue. Landscaping services spending helps drive demand for lawn and garden equipment.
• New single-family home sales fell 13.7% month-over-month and were down 6.3% year-over-year in May 2025, according to the US Census Bureau. May’s total new home sales reached 623,000 units. According to Dow Jones estimates, Wall Street analysts had expected May sales to reach 695,000. In recent quarterly reports, some homebuilders said high interest rates and weaker consumer confidence weighed on demand. As sales of new homes remain soft, inventories of unsold homes are increasing. At the end of May, there were 507,000 new homes for sale, up 15% compared to May 2024. The number of unsold new homes in May was the highest since the summer of 2022, after the Federal Reserve began increasing interest rates.

• Home builder confidence in the single-family market dropped in June to the lowest level since December 2022 amid high mortgage rates, tariff concerns, and increased economic uncertainty, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), fell two points to 32 in June 2025. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders have reduced home prices to lure potential buyers off the sidelines, although the average price reduction of 5% has remained unchanged since November 2024.
• The total value of nonresidential building starts rose 18% in May, according to Dodge Construction Network. Commercial construction starts increased 28% amid stronger activity in the retail, office, and warehouse subsectors. Healthcare helped boost institutional starts to 19% growth in May over April. Manufacturing starts were down 13%. Dodge Construction Network associate director of forecasting Sarah Martin said, “Construction starts rebounded across most sectors in May, bouncing back from a sluggish April. However, year-to-date figures remain below last year’s pace. Ongoing uncertainty around trade policy and the economic outlook is likely to keep construction activity in check in the months ahead.” Nonresidential building construction is a demand driver for landscape architectural services.