Landscaping Services NAICS 561730

Jun 16, 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.
• So-called “missing middle” medium-density housing, which includes duplexes, townhouses, and other smaller multifamily properties, has gained in popularity over the last several quarters, according to the National Association of Home Builders. Multifamily properties in the missing middle (2 to 4 units) have generally been out of favor since the Great Recession, but they are experiencing a resurgence. In the first quarter of 2025, there were 5,000 construction starts for housing properties with 2 to 4 units, which was flat compared to a year earlier. However, over the past four quarters, the number of missing middle residential construction units reached 23,000, marking a 53% increase over the four quarters before that period. The missing middle segment’s gains may be limited absent zoning reform that allows for increased density. Multifamily developments are a demand driver for commercial landscaping accounts.

• 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.
• 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.