Landscaping Services NAICS 561730

Aug 18, 2025 - Green Industry Posts Steady Q2 Growth

• Providers of lawn care and landscaping – “Green” services – saw conditions improve in the second quarter of 2025 after a slow start to the spring season, according to the recently released Home Service Economic Report by Jobber, a job tracking and customer management software firm. Amid high interest rates and inflation, consumers are focusing on maintenance instead of taking on large projects. However, the green sector saw a 2.5% increase in new work bookings in Q2 compared to the same period in 2024. Green firms’ median revenue increased 5.8% in the second quarter over a year earlier, and average invoice size grew by 3.7% over the same period. To maintain momentum into the slower third-quarter season, Jobber suggests green firms focus on client retention and upselling existing customers on preventative care services. Landscaping services spending helps drive demand for lawn and garden equipment.
• US outdoor power equipment (OPE) dealers saw same-store sales rise 20% in July 2025 compared to the same month in 2024, according to Constellation Dealer Services. OPE dealers’ wholegoods department sales saw the most significant increase with a year-over-year rise of 23%. Dealers’ parts department sales grew 14% and service department sales saw 5% improvement. Regionally, OPE dealers in the South saw the biggest gains in May sales with a rise of 24% compared to a year earlier, followed by the Midwest and Northeast, which saw increases of 21% and 15%, respectively. Same-store OPE dealer sales in the West increased 2% in July 2025 over the same period in 2024. Outdoor power equipment sales are a proxy indicator for landscaping services demand.

• Renters were the sole driver of the rise in household formations in the second quarter of 2025, according to the Census Bureau’s most recent Housing Vacancy Survey (HVS) and the National Association of Home Builders (NAHB). In Q2 2025, the total number of US households increased to 132.5 million, up by 1.2 million compared to 131.3 million in the second quarter of 2024. The increase in new households was entirely driven by renters, amid the lowest homeownership rate since 2019. US homeownership fell to 65% of total households in Q2 2025 and was 4.2 percentage points below the 25-year average of 66.3%. High home prices, elevated mortgage rates, and low inventories have pushed housing affordability to the lowest level in decades. US homeownership is an indicator of demand for residential landscaping services.
• Home remodeling spending growth is expected to remain flat in 2025 and the first half of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 2% to $509 billion in the third quarter of 2025 compared to Q3 2024. In the fourth quarter of 2025, remodeling spending will rise quarter-over-quarter to $511 billion, up 1.8% from Q4 2024. Spending will increase to $524 billion in Q1 2026, up 2.2% from Q1 2025. In the second quarter of 2026, year-over-year spending is forecast to rise 1.2% to $518 billion. Joint Center expects a weak housing market to put downward pressure on remodeling spending. However, recent federal cuts to incentives for efficiency improvements may spur short-term growth as homeowners make upgrades before benefits expire at the end of the year.