Jobber Home Service Economic Report
Q1 2025
Jobber Tracks the Pulse of Home Service
Jobber is the leading software platform for small home service businesses. It supports over 300,000 professionals across industries like landscaping, HVAC, plumbing, and cleaning, helping them manage operations and get paid faster.
Home Service is a major but underreported part of the small business economy—local, labor-intensive, and essential. The Home Service Economic Report (HSER) leverages Jobber’s proprietary data drawn from its more than 300,000 users to offer a rare, real-time view of trends in consumer demand, revenue, and economic conditions across four key segments: Green, Cleaning, Contracting, and Construction.
The HSER delivers actionable insights on market shifts, challenges, and strategies, helping businesses understand what’s happening, why it matters, and how to succeed.
Trends Defining Q1 in Home Service
2025 began with stabilization in Home Service, but growth was limited by economic uncertainty and cautious consumers. As inflation eased and household incomes improved slightly, elevated interest rates continued to hold back demand for larger projects. In response, homeowners shifted spending toward essential services, smaller upgrades, and more convenient digital experiences. Jobber’s real-time data reveals how these trends played out across Green, Cleaning, Contracting, and Construction segments.
What’s driving change in Home Service?
- Stabilization, not acceleration
The category entered the year on steadier ground, but uncertainty around interest rates and broader macro conditions kept many homeowners cautious, particularly about discretionary or financed projects. - Homeowners are spending, but selectively
More are investing in what they already have rather than moving. High home equity and an aging housing stock supported demand for essential upgrades and deferred maintenance, but large-scale renovations still lagged. - Segment performance was mixed
- Green started strong but lost momentum mid-quarter; revenue held up thanks to bundled services and price adjustments.
- Cleaning remained steady due to recurring work and stable invoice sizes.
- Contracting saw solid baseline demand but little expansion as project sizes stayed conservative.
- Construction showed early signs of volume recovery, but revenue declined as homeowners deferred big-ticket jobs.
- Digital payments hit a record high
Digital payments now account for 47% of transaction volume—a 9% YoY increase—reflecting homeowner demand for convenience and professionalism. - Outlook: cautious consumers, steady opportunities
Home Service companies that focus on value, reliability, and digital-first operations will be best positioned to retain customers and grow in a slower market.
The Broader Home Service Economic Landscape
Cautious optimism fuels demand for essential, value-driven home services
Home Service entered 2025 on stronger footing than the previous year, supported by easing inflation1, steady GDP growth2, and resilient household spending3, despite a dip in consumer confidence4. Inflation fell to 2.7% in Q11, but with real disposable income growing just 1.5%3, purchasing power remains under pressure, keeping consumers cautious and price-sensitive. Interest rates held steady5, but borrowing costs stayed high6, prompting service professionals to prioritize cash flow, avoid new debt, and focus on recurring, high-margin work over large, financed projects. As maintenance spending7 declined and homeowners became more selective, service businesses are best positioned for success by emphasizing essential services, preventative care, and clear value.
Despite sluggish home sales8, U.S. home equity reached $35 trillion by the end of 2024, prompting homeowners to invest in targeted, value-driven improvements rather than large renovations due to high borrowing costs. Renovation spending rebounded in Q1 2025 after five quarters of decline, with continued growth projected into 20269. Aging homes and longer ownership10 are fueling demand for maintenance, repairs, and system upgrades. As a result, service pros should focus on high-equity geographic areas and promote preventative, energy-efficient services that appeal to long-term homeowners.
Home Service Category Performance
Segment snapshot: Home Service shows mixed Q1 performance as consumers prioritize smaller, recurring jobs over big projects
In this section, we break down Q1 2025 performance across the four key segments of Home Service– Green, Cleaning, Contracting, and Construction–to see how each fared in terms of jobs and revenue11. Each segment has its own seasonal patterns and is influenced differently by economic factors.
Green
Invoice sizes drive revenue, while scheduling is soft
The Green segment began the year with strong momentum, showing an 8% YoY increase in new work scheduled in January. That early growth faded, with bookings declining 14% in February and 1% in March, likely due to unpredictable weather and hesitancy around non-essential outdoor services.
Despite the booking dip, revenue rose 6% YoY, driven by a 5% increase in average invoice size. Revenue growth was driven by bundled seasonal offerings and modest price increases, especially early and late in the quarter, which helped offset fewer bookings. Looking ahead, recurring models and early-season retention will be key to maintaining revenue.
New Work Scheduled YoY — Green
Average Invoice Size YoY — Green
Median Revenue YoY — Green
Cleaning
Recurring work sustains revenue while new work scheduled is down
The Cleaning segment faced ongoing challenges in Q1 2025, with new work scheduled down 4% year-over-year. Although this marks an improvement from the 7% decline in Q1 2024, volatility persisted month to month. January and February posted declines of 5% and 8%, respectively, while March stabilized at 0%. These results point to continued softness in lead generation, particularly for one-time or discretionary services.
Despite lower job volume, revenue rose modestly thanks to a 5% increase in average invoice size, driven by upselling and bundling of recurring services, especially in February and January. Businesses emphasizing long-term client retention and subscription-style models fared better than those relying on new customer acquisition. Given the segment’s low seasonality, Q1 provides a meaningful snapshot of underlying demand: consumers remain cautious about adopting new services but are still willing to pay for reliable, recurring cleaning help. Companies offering streamlined scheduling, digital payments, and seamless communication are best positioned to retain clients and weather a sluggish lead environment.
New Work Scheduled YoY — Cleaning
Average Invoice Size YoY — Cleaning
Median Revenue YoY — Cleaning
Contracting
Demand remains steady, but growth stalls across the board
New work scheduled declined 4% year-over-year in Q1, marking the third straight year of negative booking growth for the period. January and February lagged the prior year with declines of 7% and 5%, respectively, while a slight recovery in March (+1%) helped temper the overall drop. Median revenue saw only a modest 1% increase, driven by a similarly small rise in average invoice size, reflecting stable demand for core services like repairs and diagnostics but little traction in higher-value project work.
February emerged as the weakest month across bookings, revenue, and invoice size, mirroring consumer caution observed in other segments. These trends suggest that while essential contracting services remain a priority for households, larger upgrades and non-urgent installations are still being postponed. Contractors offering maintenance plans or demonstrating quick responsiveness have been more successful in maintaining job volume amid ongoing hesitancy around discretionary spending.
New Work Scheduled YoY — Contracting
Average Invoice Size YoY — Contracting
Median Revenue YoY — Contracting
Construction
Early signs of recovery, but revenue trails as projects face delays
The Construction segment had a mixed performance in Q1 2025, with new work scheduled rising 4% year-over-year, a positive shift after two years of Q1 declines. Momentum throughout the quarter was driven by 6% year-over-year gains in January and March, hinting that homeowners may be laying the groundwork for future projects despite ongoing concerns about financing conditions.
However, median revenue fell 4% year-over-year, with February standing out as particularly weak at -15%. This decline occurred despite an increase in new work scheduled and a steady rise in average invoice size (6% year-over-year), suggesting that many jobs booked late in the quarter may not have been completed or invoiced yet. Given Q1’s typical seasonal slowdown and the impact of postponed rate cuts, contractors may need to maintain quote flexibility and nurture pipelines to position for a stronger rebound later in the year.
New Work Scheduled YoY — Construction
Average Invoice Size YoY — Construction
Median Revenue YoY — Construction
Digital payment adoption reaches an all-time high as homeowners expect convenience
The adoption of digital payments in Home Service transactions hit a new high in Q1 2025 with a 9% year-over-year increase from 43% to 47% of total payments being digital. This sustained momentum reflects a broader shift in consumer expectations toward speed, ease, and digital-first experiences.
The trend has been consistent over the past five years, with adoption accelerating notably throughout 2024 and into early 2025. As more homeowners embrace a fully digital service journey—from booking to payment—digital payment capabilities have transitioned from a competitive advantage to a customer expectation. Service professionals who embrace seamless, online-friendly tools are better positioned to attract and retain modern customers, particularly younger and time-conscious homeowners who prioritize convenience.
Online Payments as % of Total Payments
Conclusion & Outlook
Charting a confident course: Adapting to a market in transition
As Q1 2025 closes, the Home Service category stands at a crossroads—stabilized after recent volatility, yet still contending with consumer caution and macroeconomic headwinds. Across segments, demand has not disappeared, but evolved: homeowners are opting for practical, value-oriented investments and favoring providers who deliver reliability, transparency, and convenience.
This environment favors businesses that are agile, digitally enabled, and responsive to changing expectations. The rise in digital payment adoption and early signs of renewed project planning, particularly in Construction, signal a broader shift: growth is increasingly being driven by operational efficiency, streamlined service delivery, and pipeline management. Looking ahead, service pros who embrace digital-first operations, simplify customer interactions, and focus on scalable, repeatable work will be best positioned for long-term success. As financing remains tight and larger projects are deferred or delayed, the greatest opportunities lie in delivering smaller, high-margin jobs with professionalism and speed.
The next wave of growth in Home Service will be driven by smarter operations. Businesses that blend the personal, hands-on approach of local service with the efficiency of modern software will lead the way. With the right tools and a forward-thinking mindset, the future of Home Service isn’t just steady—it’s full of opportunity.
Methodology & Data Sources
- 1-Year Inflation Expectations are sourced from University of Michigan.
- GDP data was sourced from The U.S. Bureau of Economic Analysis (BEA).
- Real Disposable Personal Income (DPI) data and chart is sourced from the U.S. Bureau of Economic Analysis (BEA).
- The Consumer Confidence Index is sourced from The Conference Board.
- The interest rate data was sourced from Trading Economics.
- The borrowing costs data was sourced from The Board of Governors of the Federal Reserve System.
- Personal Consumption Expenditures (PCE) data is sourced from the U.S. Bureau of Economic Analysis (BEA).
- New Home Sales figures are sourced from the U.S. Census Bureau.
- The Leading Indicator of Remodeling Activity (LIRA) is sourced from the Harvard Joint Center for Housing Studies.
- The United States Existing Home Sales data is sourced from the National Association of Realtors.
- Home Service insights in this report are based on proprietary data aggregated from over 300,000 Home Service professionals using Jobber across the United States. This includes segment performance*, digital payment adoption, and tools engagement.
*The year-over-year change in median revenue, new work scheduled, and invoice sizes were calculated by aggregating data from a cohort of businesses using Jobber since January 2021. This doesn’t include any new businesses that started using Jobber during that period.
