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