Jobber Projects Home Services Growth Possible in Second-Half 2024

(Image courtesy of Jobber; Breakout image courtesy of Stephanie Ho/pexels.com)

Home service software provider Jobber, Edmonton, Alberta, released its Home Service Economic Report for the second quarter, finding that consumer spending on home services, such as renovations, may grow in the second half of this year.

The first half of 2024 saw some cooldown in Home Services business, but service provider revenues still grew at low single digits for Q1 and Q2, largely due to increased invoice size.

Experts predict that consumer spending will increase in the second half of the year and 2025 as inflation and interest rates wane. Consumer spending has been cautious so far this year.

However, home equity values are increasing, but new permits and housing starts are declining, which may create different headwinds in the industry.

Remodeling activity, specifically, is expected to recover in early 2025 and is poised for long-term growth amid the aging housing stock in the U.S.

In terms of home service categories, Green (lawn care, landscaping, etc…) saw steady growth–Jobber noted that that may be related to consumers investing in small aesthetic improvements instead of major projects. Revenue in the Cleaning sector was fairly flat or showed only a slight uptick.

The Contracting segment (such as arborists, electricians, HVAC, plumbing, and other non-construction services) had mixed results in terms of new work scheduled and median revenue growth in the first half of 2024.

The Construction segment saw the largest decline in new work, but declined less than in the same period last year–it was potentially hit hard by high interest rates.

“As we navigate the economic landscape of 2024, it’s clear that consumer demand is experiencing a cautious yet positive trend,” said Abheek Dhawan, Senior VP, Strategy and Analytics at Jobber. “Although growth has cooled to low single digits in the first half of the year, increased average invoice sizes have helped service businesses maintain revenue. As inflation subsides and potential interest rate cuts loom, we anticipate a boost in consumer spending in the latter half of 2024 and into 2025. This will likely drive growth in the Home Service sector, particularly as housing and home improvement services become more affordable.”