Home services expected to remain resilient in 2025

Software company Jobber this week released its Q3 Home Service Economic Report, highlighting trends from the 200,000+ contractors on its platform and offering insight into what’s next for home services. 

The big picture: The Federal Reserve’s recent interest rate cuts have started positively impacting consumers, with both spending and confidence showing an uptick. 

State of play: Jobber’s Contracting segment, including HVAC and plumbing contractors, saw a downturn in new work scheduled toward the end of the quarter. 

• However, “median revenue growth has remained relatively flat, suggesting that pricing adjustments and possibly more complex or higher-ticket projects have helped offset scheduling variability,” the report says. 

• Full report

Zoom out: Beyond Q3, home service demand is closely linked to the housing market, where Jobber notes there are bright spots. 

• The average 30-year fixed mortgage rate has dropped by about 9% since last November, to 6.8% yesterday. 

• And experts predict a rise in existing home sales — which impact replacement demand — over the next two years. 

“Increased new home construction, home sales, and rising home equity will drive demand for both discretionary and mandatory projects,” the company says.

Of note: Shipments of central air conditioners and heat pumps have also been on a tear, growing every month during the third quarter, compared to last year.

The bottom line: The combination of falling interest rates and an improving housing market builds Jobber’s optimistic outlook for contractors in the coming year. 

• “The sector is well-positioned to benefit from an aging housing stock and an increased focus on essential updates, setting the stage for sustained demand and expansion through 2025 and beyond,” the company adds.