The inaugural Houzz Barometer study tracks industry confidence in the U.S. home renovation market by way of industry surveys, and this year’s results paint a happy picture. The quarterly index posted a value of 74 or higher across all company types for the last three months of 2014, which indicates optimism about the industry rebound continuing. This trend continued into this year, with the Houzz Renovation Barometer posting a value of 75 or higher in the first quarter.
Over 80 percent of interior designers, landscape professionals, builders and remodelers, and 70 percent of architects, expect revenues and profits to grow this year, which will result in hiring plans. Nearly half of builders/remodelers and specialty trade firms expect to grow their employee base this year.
The study was conducted by surveying a national panel of over 5,000 architects, builders and remodelers, and interior designers, landscape architects and designers.
“With a community of over 25 million monthly unique users, 90 percent of whom are homeowners, and more than 600,000 active home professionals, Houzz is in a unique position to provide unprecedented insights into the health of the home renovation, building and decorating industry,” said Nino Sitchinava, principal economist at Houzz. “Barometer findings are consistent with other leading industry research and economic indicators of growth and confidence for the home improvement industry, as baby boomers and growing families continue to invest in their homes.”
Charts courtesy of Houzz.
Last year saw healthy revenue growth that either met or beat expectations the expectations of many firms. Industry revenue growth largely came in the form of an increase in number and scale of new projects and orders.
That all being said, many firms expressed concerns about an impending shortage of qualified labor and subcontractors, a shift toward a budget-conscious homeowner and the overall uncertainty across U.S. and global economic and political climates.