The landscaping industry is experiencing remarkable momentum heading into 2026. New market research from Sherlock Research shows business owners are optimistic, demand remains strong, and several emerging trends are reshaping how companies operate.

Market growth and economic drivers

The residential landscaping sector is projected to grow 4.2% year-over-year in 2026, driven by continued residential construction and homeowner investment in outdoor living spaces. The post-pandemic surge in home improvement spending hasn't cooled — in fact, it's stabilizing at a higher baseline.

Key economic drivers include:

  • Persistent demand for outdoor living areas and hardscaping
  • Continued investment in sustainable, water-efficient landscaping
  • Growing commercial landscaping opportunities as commercial property reopens
  • Increased professionalization of the industry
Outdoor living spaces driving residential demand

Emerging trends and opportunities

1. Sustainability and eco-friendly design

Homeowners are increasingly requesting native plants, drought-resistant landscaping, and sustainable maintenance practices. Companies that can offer these solutions command premium pricing and attract a growing segment of environmentally conscious clients.

2. Technology adoption

From scheduling software to drone inspections, technology is increasingly adopted across the industry. Early adopters are gaining competitive advantages in efficiency, customer communication, and operational scaling.

3. Premium services

The trend toward premium outdoor living — including outdoor kitchens, water features, and integrated lighting — continues to grow. These higher-margin services are attracting new customers willing to invest in their properties.

Want the data behind your market?

The full 2026 Landscaping Industry Report includes city-specific demand, pricing benchmarks, and competitive intensity for 20+ U.S. metros. Plus 6 modules of operator-ready analysis — not just charts.

See the full report →

Challenges and considerations

While the outlook is positive, landscaping business owners should be aware of several challenges:

  • Labor availability: Finding and retaining skilled workers remains difficult in most markets.
  • Material costs: While stabilizing, material costs remain elevated compared to pre-pandemic levels.
  • Competition: More players entering the market, particularly from adjacent service industries.
  • Seasonality: Managing cash flow across seasons requires more sophisticated financial planning.

What operators should do now

For landscaping business owners looking to capitalize on current market conditions, we recommend:

  1. Understand your local market deeply — demand and pricing vary significantly by geography
  2. Invest in technology and training to improve operational efficiency
  3. Develop a pricing strategy that reflects the premium nature of your services
  4. Build your brand around your unique value proposition (sustainability, design, service quality, etc.)
  5. Plan your growth strategically — understand what your market can support

Looking ahead

The landscaping industry is well-positioned for continued growth in 2026 and beyond. Business owners who understand their market, adopt best practices, and invest in their capabilities will be best positioned to capture this opportunity.

Want detailed benchmarks, competitive intelligence, and location-specific insights for your market? Our 2026 Landscaping Industry Report provides exactly that — data you can act on.