Landscape Contractors Predict Best Year Since Recession

Like many business sectors, landscape contractors have been through a few tough years, but there is evidence from around the country that the industry is heading into better times in certain parts of the country. Also like many industries, landscaping growth is tied to new-home construction and home sales in general.

Donald Kitner, president of Three Spruce Landscape Contractors near Dillsburg, Pennsylvania sees all the signs that this year could be the best housing market since 2007, back when the recession ground everything to a halt.

"We're going to have a hell of a spring," Kitner gushed, saying he already has lawn and shrub installinons for 20 new homes lined up. All the homes were custom builds, too. The backlog of spec homes built for buyers who never materialized in the midst of the recession has been cleared, he said. Kitner works almost exclusively works with area home builders. They put up the houses, and he puts in the lawns, shrubs and trees.

Kitner keeps a close eye on sales of existing homes in neighborhoods all over central Pennsylvania. He notices the new "For Sale" signs, then checks back to see how long before the "Sold" signs go up. It used to take several months for the homes to sell, but now, in the hot residential areas of both the East and West Shores, it can be as little as two weeks, Kitner said.

"The biggest thing is all the inventory, over the last three years, is all gone," he said. "The real estate market is starting to even out. All the way around, it's looking like a much better year.

Best Expected Growth Areas
National home prices are expected to climb 0.6 percent in the next year, according to the latest home price report by Fiserv Case-Shiller. But over the next five years, home prices are expected to rise 3.3 percent. But not all areas will advance at the same level.

Here are the top 10 cities ranked by the projected annualized change in home prices between the third quarter of 2012 and the third quarter of 2017.

Medford, Oregon: 9.7%

Santa Fe, New Mexico: 9.1%

Panama City-Lynn Haven-Panama City Beach, Florida: 9.1%

Sebastian-Vero Beach, Florida: 8.9%

Carson City, Nevada: 8.5%

Santa Barbara: 8.4%

Reno Speaks, Nevada: 8.1%

Yuma, Arizona 7.7%

Allejo-Fairfield, CA: 7.5%

Gulfport-Biloxi, Miss: 7.4%