2019Q4 Renovation Barometer - Construction Sector
Findings from the Q4 2019 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
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The Expected Business Activity Indicator related to project inquiries and new committed projects increased to 74 in Q4 (up four points relative to Q3): The increase is a result of the expectations for project inquiries increasing significantly to 78 in Q4 (up ten points), and expectations for new committed projects decreasing slightly to 70 in Q4 (down one point). Among the two reporting business groups, the increase in overall expectations is entirely driven by build-only remodelers. Expectations of build-only remodelers increased by eight points to 73 in Q4 (relative to Q3), while expectations of design and build remodelers remained steady at 75. See additional subsector and regional data (PDF).
The Project Backlog Indicator increased to 5.2 weeks nationally at the start of Q4 (up 0.3 weeks relative to Q3): The overall backlog for the construction sector is 1.1 weeks below year-over-year levels. Among the two reporting business groups, backlogs declined for build-only remodelers, down to 4.2 weeks (from 4.6 weeks in Q3) and increased to 6.3 weeks (from 5.2 weeks in Q3) among design and build remodelers. Backlogs vary significantly from 3.0 weeks to 6.6 weeks across the nine Census divisions. See additional subsector and regional data (PDF).
The Recent Business Activity Indicator related to project inquiries and new committed projects increased to 63 in Q3 (up five points relative to Q2): This follows an 11-point increase in project inquiry activity to 67 in Q3 and a slight increase in new committed projects to 60 (up one point). The overall recent activity indicator was mixed among the two business groups, with the overall increase driven by build-only remodelers, who reported a significant recovery in recent activity (up nineteen points to 66 in Q3 relative to Q2) and tempered by the decline reported by design and build remodelers to 61 (down seven points relative to Q2). See additional subsector and regional data (PDF).