Jobber's Q3 2024 Home Service Economic Report Highlights Positive Momentum as Interest Rate Cuts Boost Consumer Spending

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Nov 13, 2024, 09:00 ET

Home Service businesses to benefit from focus on maintenance projects as homeowners regain financial flexibility

TORONTO, Nov. 13, 2024 /PRNewswire/ - Jobber, the leading provider of home service software, today released its latest Home Service Economic Report: 2024 Q 3. The report features expert insights and proprietary data aggregated from more than 250,000 residential cleaners, landscapers, HVAC technicians, electricians, plumbers, and more, who run their businesses using Jobber.

The U.S. Federal Reserve's recent interest rate cuts are already showing early signs of impact on consumer spending, bringing cautious optimism for the home service industry. After a slower first half of 2024, Jobber's data shows increased momentum through the end of Q3, signaling a gradual recovery fueled by improved financial flexibility for consumers. These findings are also supported by the Michigan Consumer Sentiment Index (MCSI), a monthly survey based on interviews that measure U.S. consumer attitudes towards personal finances, business conditions and economic activity.

"As we move through the second half of 2024, we're seeing encouraging signs for the home service category—especially as financial conditions continue to improve and consumer confidence grows," said Sam Pillar, CEO & co-founder of Jobber. "At Jobber, we're committed to helping small home service businesses capitalize on these opportunities, and the data we're seeing suggests a path toward sustained growth in the months and years ahead."

Demand for Home Service Outpaces Consumer Goods

Despite fluctuations in new work volume, consumer demand for home services held steady in Q3, with spending on services outpacing consumer goods. Higher average invoice sizes helped stabilize revenue, balancing the variability in new work. As interest rate cuts improve disposable income and consumer sentiment, household spending power is expected to rise, potentially driving further growth in home service demand.

Economists anticipate that the interest rate cuts will continue into 2025, providing greater affordability in areas like mortgage rates and financing for home improvements. This environment is expected to boost activity across both the housing and home service markets as consumers look to invest in essential home maintenance and renovation projects.

Housing Market: A Positive Outlook Ahead

The housing market remains closely tied to demand for home services, and recent data indicates a promising future for this sector. While certain indicators, such as construction spending, new permits, and housing starts, have shown temporary stagnation, the cumulative effect of rate cuts is projected to revitalize the market by mid-2025. Rising home equity and expected increases in home improvements will drive demand for both discretionary and essential projects, pushing projected annual spending to $477 billion by Q3 2025, nearing previous peak levels.

Segment Highlights: Green, Cleaning, Contracting, and Construction

Jobber's report includes insights on the four key segments within the home services category, revealing trends in consumer spending and business resilience:

Green: The Green segment, which includes lawn care and landscaping, saw early growth in 2024, though activity slowed in Q3 except for July. Despite economic pressures, median revenue remained stable as homeowners prioritized smaller, recurring outdoor maintenance over large renovations.
Cleaning: Cleaning services, including residential and commercial cleaning, have seen rising median prices but declining volumes in 2024. While new work scheduled fluctuated due to reduced consumer spending, service providers have maintained stable revenue growth by increasing prices and focusing on premium offerings.
Contracting: The Contracting segment, covering services like electricians and HVAC, experienced a downturn in new work scheduled by late Q3. Nonetheless, median revenue stayed steady, likely due to pricing adjustments and a shift toward higher-value projects.
Construction: Construction services, including residential and commercial projects, have seen an improvement in median revenue as consumer spending shifts toward maintenance and improvements. However, new work scheduled continued to decline in Q3, reflecting cautious spending amid the gradual economic recovery.

"The 2024 Q3 Jobber Home Service Economic Report shows a promising outlook for the home services sector as interest rate cuts start to boost consumer spending and demand," said Abheek Dhawan, Senior VP, Strategy & Analytics at Jobber. "With rising home equity and a shift toward maintenance projects, we anticipate steady growth as financial conditions improve. The sector is well-positioned to benefit from an aging housing stock and increased focus on essential updates, setting the stage for sustained demand and expansion through 2025 and beyond."

To download the Jobber Home Service Economic Report: 2024 Q3, visit: https://getjobber.com/home-service-reports/nov-2024/

About Jobber
Jobber is an award-winning software for small home service businesses. Unlike spreadsheets or pen and paper, Jobber keeps track of everything in one place and automates day-to-day operations, so small businesses can run smoothly and provide five-star service at scale. Jobber is used by more than 250,000 home service professionals to serve over 27 million properties in more than 60 countries. The company continually ranks as one of Canada's fastest-growing and most innovative companies by Canadian Business and Macleans, The Globe and Mail, Fast Company, and Deloitte. For more information visit: https://jobber.com/.

Media contacts

Travis Van Horn
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Elana Ziluk
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SOURCE Jobber