Industry Research
Renovation Barometer
2023Q1 Houzz Renovation Barometer - Construction Sector
Findings from the Q1 2023 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 increased to 53 in Q1 (compared with 50 in Q4, 2022): The expectations for both project inquiries and new committed projects increased quarter-over-quarter (from 47 to 52 and from 53 to 54, respectively). This increase is driven by increases in expectations among build-only remodelers in Q1 (53 compared with 46 in Q4, 2022). Conversely, expectations declined 1 point among design-build remodelers (53, compared with 54 in Q4, 2022). See additional sub sector and regional data (PDF).
The Project Backlog Indicator is 8.3 weeks nationally at the start of Q1: The overall backlog for the construction sector is 3.1 weeks shorter compared with the same period last year. Among the two reporting business groups, the backlogs are at 7.5 weeks for build-only firms and are at 9.1 weeks among design-build firms. Compared with the same period last year, wait times are shorter by about 2 weeks for build-only and by more than 4 weeks among design-build firms.
Geographically, backlogs vary from 6.5 weeks (West North Central division) to 11.3 weeks (New England division) across the nine Census divisions. Compared with the same quarter one year ago, backlogs for the construction sector are shorter across all nine Census divisions. See additional subsector and regional data (PDF).
The Recent Business Activity Indicator related to project inquiries and new committed projects remained steady at 42 in Q4, 2022: This follows an increase in project inquiry activity to 39 in Q4, 2022 (compared with 34 in Q3) and a decrease in new committed projects to 46 (down 5 points relative to Q3). Build-only remodelers experienced an 8-point increase in recent business activity at 42 points in Q4 (compared with 34 in Q3). In contrast, design and build remodelers reported a decline in recent business activity to 43 in Q4, 2022 (compared with 50 in Q3). See additional subsector and regional data (PDF).
The Q1 2023 U.S. Houzz Renovation Barometer was fielded from December 27, 2022 through January 11, 2023 and garnered responses from 154 build-only remodelers and 395 design and build remodelers (n=549 in the construction sector). See detailed methodology here.
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