Landscaping Services in the US - Market Research Report (2014-2029)

The Landscaping Services industry is dependent on the health of housing and property markets, as well as on levels of per capita disposable income, since landscaping services are often discretionary. While these industries are the bedrock client base, landscapers also rely on institutional and commercial clients because they generate higher revenue per service.The domestic housing market boom underpinned the industry's growth. A healthier housing market has encouraged current homeowners to invest in their properties to boost their value amid growing disposable income. While the COVID-19 pandemic disrupted operations in 2020 as states across the country ordered nonessential businesses to close and commercial clients reduced demand as companies sent office workers home, low interest rates through 2022 created a boom in the housing market. In 2020 and 2021, overall landscaping revenue rose 8.0% and 6.2%, respectively. However, interest rates have since risen in an effort to curb inflation, slowing housing markets and reducing spending on the industry. Overall, revenue has rallied at a CAGR of 4.0% to $158.9 billion over the past five years, including growth of 3.0% in 2024.Nonresidential construction activity will climb steadily in the coming years, making this market a point of emphasis for landscapers. The residential market will also grow as interest rates are expected to ease as inflation tempers, while rising per capita disposable income will boost households' ability to spend on discretionary landscaping services. The industry's revenue is forecast to climb at a CAGR of 3.6% to $189.7 billion over the five years to 2029. On the back of strong growth, profit margins are also expected to grow as companies charge higher rates.