Landscape Architectural 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 4,900 landscape architectural services in the US plan and design the development of land areas related to private homes, businesses, recreational facilities, campuses, parks, recreational facilities, and other open spaces. Firms may also offer urban planning, residential landscaping, project site master planning, and other consulting services.
Dependence on Construction Market and Economy
Demand for landscape architectural services is dependent on construction activity, which is cyclical and influenced by economic conditions.
Mitigating Climate Change
Public and private sector clients are demanding landscape architecture solutions that address climate change.
Industry size & Structure
The average landscape architectural service provider operates out of a single location, employs about 7 workers, and generates about $1.2 million annually.
- The landscape architectural services industry consists of about 4,800 firms that employ 33,000 workers and generate $5.8 billion annually.
- The industry is fragmented; the top 50 companies account for 20% of industry revenue. More than half of firms generate less than $1 million annually.
- Stantec is one of the largest architectural firms in the US and offers landscape architectural services. The biggest landscape architectural services companies typically have offices in multiple major metropolitan areas in the US, but none are truly national in scope.
- The largest client groups are private homeowners, architects, and cities/municipalities, according to the American Society of Landscape Architects (ASLA). The largest client group for firms with four employees or fewer is private homeowners. Large firms typically serve commercial and government clients.
Industry Forecast
Landscape Architectural Services Industry Growth
Recent Developments
Jul 8, 2024 - Existing Home Sales Drop
- Sales of existing US homes decreased by 0.7% in May from April and were also down 2.8% year-over-year, according to the National Association of Realtors (NAR). The median price for all types of homes in May was $419,000, marking an all-time high and up 5.8% from a year earlier. According to Freddie Mac, as of June 20, 2024, the 30-year fixed-rate mortgage averaged 6.87%, down from 6.95% for the same period in 2023. NAR chief economist Lawrence Yun said, "Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers. The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning."
- Mortgage rates fell slightly in June 2024 but remained elevated, according to Freddie Mac. The average 30-year fixed-rate mortgage was 6.92% in June compared to 7.06% in May. Despite the slight monthly drop, average mortgage rates remain 21 basis points higher than a year earlier, which is keeping many would-be homebuyers on the sidelines of the housing market. By the end of 2024, the National Association of Home Builders (NAHB) expects the 30-year mortgage rate to fall to about 6.66% and further moderate to just under 6% by the end of 2025. The NAHB also projects that the Federal Reserve will cut the federal funds rate by 25 basis points at its meeting in December 2024 and that the Fed will cut rates an additional six times in 2025.
- The total value of nonresidential building construction starts decreased 2% in May from April, according to Dodge Construction Network. The drop was primarily due to a 14% decline in manufacturing starts after robust activity in April. May’s institutional starts were down 6%, but commercial construction starts grew 10% amid a rise in warehouse, office, and parking structure starts. Residential building starts fell 7% in May as a 2% increase in single-family starts was not enough to offset a 25% decline in multifamily. Dodge Construction Network chief economist Richard Branch said, “Even though May’s gain in construction starts was mainly due to a handful of large projects, the data highlights that there is some grassroots demand building in the market. Single-family starts, in particular, have risen in 8 of the last 12 months despite high mortgage rates. Growth in single-family will incentivize further demand for retail, health, and education starts, among others, and the stability in the Dodge Momentum Index, which tracks projects in planning, underscores this optimism.”
- The recent What Home Buyers Really Want Study by the National Association of Home Builders offers insight into the outdoor features most desired by homebuyers and homeowners. Study participants were given a list of more than 200 home features and were asked to rate each as essential, desirable, indifferent, or do not want. Patios were the top outdoor feature, with 86% of respondents rating them essential or desirable. Other leading home outdoor features included exterior lighting (82%), front porch (81%), and landscaping (80%).
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