In a huge benefit to the green industry, a recent survey conducted by Harris Interactive shows that more than 24.7 million U.S. households spent $28.9 billion on professional landscape, lawn care, and tree care services in 2002. Researchers credit a slow economy and a housing market that has remained strong, thanks to low interest rates, for the increases, which include nearly 1 million more households using these services and a $3 billion rise in spending over the previous year.
“Homeowners understand that their landscape is a valuable investment,” states Debra Holder, executive vice president of the Associated Landscape Contractors of America (ALCA), a sponsor of the survey. “Recent reports from realtors across the country cite a return on investment of landscape expenditures of 15 to 20 percent,” she adds.
The study also estimates that 24.9 million households plan to purchase lawn and landscape services in 2003. This is a 200,000-household increase – about one percent – over 2002. Since 1997, more than 21 million U.S. households have spent more than $14 billion annually on professional landscape, lawn care, and tree care services. The 2002 expenditure of $28.9 billion represents an 11 percent increase over the five-year average.
According to the study, the average amount of money each household spent on lawn care and landscaping services in 2002 was $1,170. 30 percent of expenditures came from households in the South, while the West, Midwest and East contributed 25, 23 and 21 percent, respectively.
Not surprisingly, landscape design/build accounted for the largest volume of green home improvements with $11.2 billion, as well as the largest average amount spent on services – $3,502. This segment also had the greatest participation with 19.4 million households contributing.
Despite a sluggish economy, spending on landscape and tree care services remains strong. Researchers attribute this trend to several factors, including continuously low mortgage rates and a weak stock market. Also, since September 11, many Americans are traveling less and spending more time at home. As a result, many homeowners are refinancing and reinvesting in their homes. Also attributable is the growing recognition of the value and return on investment in landscape expenditures.
Harris Interactive reached their results by interviewing a representative sampling of 1,500 households nationwide. The data, which covers 2002 spending on lawn care/landscape maintenance, landscape installation, landscape design and tree care, has a margin of error of +/– 3 percentage points.
ALCA, the American Nursery & Landscape Association, the International Society of Arboriculture, the Tree Care Industry Association, and the Professional Lawn Care Association of America sponsored the Harris Interactive survey, which was conducted by the National Gardening Association.