Industry Research
Renovation Barometer
2024Q2 Houzz Renovation Barometer - Construction Sector
Findings from the Q2 2024 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 58 in Q2 2024 (compared with 57 in Q1): The expectations for project inquiries increased slightly quarter-over-quarter (from 57 to 58) and the expectations for new projects decreased from 58 to 57. Build-only firms are slightly more optimistic than last quarter with an expected business indicator of 58 points in Q2 (compared with 56 in Q1). In contrast, design-build remodelers anticipate lower activity than the previous quarter (58 in Q2 versus 59 in Q1). Overall, both business groups expect Q2 business activity to be better than Q1, as a score greater than 50 points indicates that more businesses expect quarter-over-quarter increases than quarter-over-quarter decreases in the business activity. See additional sub sector and regional data (PDF).
The Project Backlog Indicator is 6.5 weeks nationally at the start of Q2 2024: The Project Backlog Indicator for the construction sector is 5.4 weeks shorter than a year ago. Both build-only and design-build remodelers report decreased wait times compared to Q2 2023 (6.4 and 4.3 weeks shorter, respectively).
For the construction sector, backlogs are shorter across all nine Census divisions compared with the same quarter last year. The New England division (including Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont) has the longest backlog (9.0 weeks) driven by build-only and design-build firms in the region (10.5 and 7.5 weeks, respectively). Construction firms in the West South Central division (including Arkansas, Louisiana, Oklahoma and Texas) report the shortest backlogs (4.1 weeks). See additional subsector and regional data (PDF).
The Recent Business Activity Indicator related to project inquiries and new committed projects decreased to 45 in Q1 2024 (down 3 points compared with Q4 2023): This is driven by a 4-point decrease in project inquiries in Q1 2024, relative to the previous quarter, and a 2-point decrease in new committed projects to 48. Both remodeler groups report a 3-point decline in business activity indicator: from 53 in Q4 2023 to 50 in Q1 2024 for build-only remodelers and from 43 in Q4 2023 to 40 for design-build remodelers.See additional subsector and regional data (PDF).
The Q2 2024 U.S. Houzz Renovation Barometer was fielded from March 15, 2024 through April 4, 2024 and garnered responses from 135 build-only remodelers and 384 design-build remodelers (n=519 in the construction sector). See detailed methodology here.
See Related Stories:
See Related Stories:
- Read the Press Release
- Read the Data Watch Story
About Houzz
Houzz is the leading platform for home remodeling and design, providing an all-in-one software solution for industry professionals and tools for homeowners to update their homes from start to finish. Using Houzz, people can find ideas and inspiration, hire professionals, and shop for products. Houzz Pro (houzz.com/pro) provides home industry professionals with a business management and marketing SaaS solution that helps them to win projects, collaborate with clients and teams, and run their business efficiently and profitably. The Houzz community is made up of millions of homeowners, home design enthusiasts and home improvement professionals around the world. Houzz is available on the web and as a top-rated mobile app. For more information, visit houzz.com. Houzz is a registered trademark of Houzz Inc. worldwide.