Landscaping Services NAICS 561730

May 16, 2025 - Homeownership Hits Five-Year Low

• Weaker homeownership rates may reduce demand for landscaping services for single-family residences. The US homeownership rate fell to 65.1% in the first quarter of 2025, marking the lowest level since the first quarter of 2020, according to the US Census Bureau’s Housing Vacancy Survey (HVS). Homeownership has been pressured as housing affordability remains at the lowest point in several decades amid high interest rates and a lack of inventory. Homeownership rates in Q1 were down across all age groups except people over 65. At 36.6%, the homeownership rate for those under 35 was the lowest in six years.
• Multifamily developer confidence declined in the first quarter of 2025, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) fell three points in Q1 2025 to 44 compared to the first quarter of 2024. The Multifamily Occupancy Index (MOI) decreased by one point to 82 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include a tight lending environment, higher borrowing costs, and regulatory difficulties. More than half of multifamily builders surveyed said their suppliers had raised prices in response to announced, enacted, or anticipated tariffs. While multifamily construction activity is expected to remain weak for the remainder of the year, the NAHB projects a modest recovery will take hold in 2026. Multifamily properties are a demand driver for commercial landscaping services.

• At an industry event in April, landscaping professionals shared their real-world experiences using battery-powered lawn and garden equipment, according to OPE+. Adoption of battery-powered equipment among landscapers is low, about 5%, according to equipment manufacturer Kress. Penetration into the consumer market has been similarly weak. Key complaints include long charging times and weak power, which some manufacturers argue are issues the industry has largely solved. However, some landscape professionals said they were disappointed by the performance of some battery-powered products and expressed concerns about adequate charging infrastructure. Others reported that the reduced maintenance needs of battery-powered equipment led to less downtime per worker per day, which improved efficiency.
• Landscapers are optimistic that revenue growth will improve in 2025, according to a recent survey of landscaping professionals by field service management provider Aspire Software. About 42% of landscaping professionals surveyed said their revenue declined in 2024, but 44% expect revenue to increase in 2025. With more than two-thirds of respondents, growing revenue was the top business goal in 2025, followed by customer acquisition (48%), business optimization (40%), and customer retention (40%). Top revenue-enhancing strategies include improved sales and marketing efforts (38%), expanded teams (21%), adding new offices (16%), and technology investments (14%). While most landscaping firms don’t plan to expand their services offerings in 2025, for those that do, the top areas of expansion include commercial and residential bid-build construction services.