2020Q1 Renovation Barometer - Construction Sector
Findings from the Q1 2020 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
The Expected Business Activity Indicator related to project inquiries and new committed projects remained steady at 74 in Q1: This is a result of both expectations for project inquiries and expectations for new committed projects remaining steady at 78 and 70, respectively. Among the two reporting business groups, expectations declined slightly among build-only remodelers to 72 (down one point in Q1 relative to Q4). Expectations of design and build remodelers remained steady at 75 in Q1 (relative to Q4). See additional subsector and regional data (PDF).
The Project Backlog Indicator increased to 5.4 weeks nationally at the start of Q1 (up 0.2 weeks relative to Q4): The overall backlog for the construction sector is 1.3 weeks below year-over-year levels. Among the two reporting business groups, backlogs increased for build-only remodelers, up to 5.0 weeks (from 4.2 weeks in Q4) and declined among design and build remodelers, down to 5.9 weeks (from 6.3 weeks in Q4). Backlogs vary significantly from 3.4 (East South Central division) weeks to 6.6 (Pacific division) 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 65 in Q4 (up two points relative to Q3): This follows project inquiry activity, which remained steady at 67 in Q4 and an increase in new committed projects to 62 (up two points). The overall recent activity indicator was mixed among the two business groups, with build-only remodelers reporting a decrease in recent activity (down two points to 64 in Q4 relative to Q3) and an increase reported by design and build remodelers to 65 (up four points relative to Q3). See additional subsector and regional data (PDF).