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Jobber's Economic Report: Trends and Insights for Home Services

Jobber, a leading provider of software solutions for home service businesses, has released its latest Home Service Economic Report, analyzing performance in 2024 alongside expectations for 2025. This report draws on data from over 250,000 home service professionals, including cleaners, landscapers, HVAC technicians, and electricians, offering a nuanced view of the sector.

Growth Indicators Amid Recovery

After navigating a challenging 2024, the outlook for 2025 appears brighter for home service businesses. Recovering consumer spending, increased home values, and a trend towards digital payment adoption are key drivers of this positive momentum. According to Sam Pillar, CEO and co-founder of Jobber, business owners have effectively adapted to fluctuating consumer demand while introducing digital tools and altering pricing strategies to maintain their competitive edge.

Consumer Confidence Rising

Though 2024 presented fewer job schedules, home service businesses managed to sustain revenue through strategic pricing adjustments and by increasing the average job value. The report indicates a notable rebound late in the year, suggesting that consumer confidence is on the rise, setting the stage for renewed growth in 2025.

Housing Market Trends

The report highlights a significant increase in single-family home values, which rose by 5.8% in Q4 of 2024. This surge in home values encourages homeowners to invest in renovations, repairs, and remodeling projects, further fueling demand in the Home Service sector.

Surge in New Constructions

In addition to existing home renovations, the housing market is experiencing a surge in new construction starts, indicating a growing need for construction-related home services. This opens up new opportunities for professional service providers in various domains.

Digital Payment Adoption

Digital payment methods saw a remarkable increase in popularity, with nearly half of all transactions in 2024 being processed digitally. This trend is expected to continue into 2025, making transactions easier for both service providers and customers, thereby streamlining operations.

Segment-Specific Insights

The report provides insights into various segments within the Home Service category, including Green services, Cleaning, Contracting, and Construction:

Green Services

The Green sector, encompassing lawn care and landscaping, experienced volatility in 2024 but ended strong with a late-year recovery. Providers adapted by shifting focus towards higher-ticket services and adjusting pricing to offset downturns in scheduled work.

Cleaning Services

Cleaning services, which range from residential to commercial cleaning, encountered a slowdown. However, revenue grew during the second half of the year due to proactive pricing strategies, demonstrating the sector's resilience.

Contracting

Professionals in the contracting segment, covering electricians and plumbers, initially faced challenges in securing new jobs at the beginning of 2024 but bounced back toward the year's end, evidencing adaptability in scheduling new work.

Construction

The construction segment witnessed slowdowns early in the year, followed by notable recovery periods in April and July. Although revenue fluctuated, the momentum indicates stronger prospects ahead with the recovering housing market.

Looking Ahead

Abheek Dhawan, Senior VP of Strategy and Analytics at Jobber, expressed cautious optimism, noting that while the Home Service sector is witnessing improved scheduling and steady revenue growth, the impending political uncertainties could impact material costs and overall operations.

In conclusion, the Home Services category continues to play a vital role in the American economy, remaining relatively insulated from market volatility despite external pressures. For a more comprehensive understanding of Jobber's Economic Report and its implications, the full report is available at Jobber's website.