Industry Research
Renovation Barometer
2023Q3 Houzz Renovation Barometer - Architectural & Design Sector
Findings from the Q3 2023 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the architectural and design services sector.
The Expected Business Activity Indicator related to project inquiries and new committed projects decreased to 52 for Q3 (compared with 56 for Q2): This decrease in expectations is driven by decreases in both components. Expectations for project inquiries and new committed projects in Q3 declined by 3 and 6 points, respectively to 52. Among the two reporting business groups, expectations decreased among architects by 3 points to 52 in Q3 (compared with 55 in Q2) and by 5 points among interior designers (52 points in Q3 compared with 57 points in Q2), indicating that a slightly lower number of firms expect their business activity to improve rather than decline compared to Q2. See additional subsector and regional data.
The Project Backlog Indicator is 6.4 weeks nationally at the start of Q3: The overall backlog for the architectural and design services sector is 1.1 weeks shorter than the same period last year. Among the two reporting business groups, architects’ backlog is at 7.6 weeks (1.2 weeks shorter relative to Q3 2022) and interior designers’ project backlog is at 4.3 weeks (1 week shorter relative to Q3 2022).
Backlogs across all nine regional divisions vary from 2.5 weeks in the West North Central division to 9.2 weeks as reported by architects and interior designers in the East South Central division. See additional subsector and regional data (PDF).
The Recent Business Activity Indicator related to project inquiries and new committed projects increased slightly to 43 in Q2 (compared with 42 in Q1): Following a continuous decline over eight consecutive quarters, the overall indicator is up 1 point at 43 relative to Q2. The recent project inquiries remained steady at 40 and the new committed projects increased to 46 in Q2 (compared with 44 in Q1). Among the two reporting business groups, architects continue to report a steady recent business activity at 41 and interior designers reported a 3-point increase in business activity to 46 in Q2 (compared with 43 in Q1). See additional subsector and regional data (PDF).
The Q3 2023 U.S. Houzz Renovation Barometer was fielded from June 22 through July 1, 2023 and garnered responses from 255 architects and 251 interior designers on Houzz (n=506 in the architectural and design services sector). See detailed methodology here.
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