2024Q3 Houzz Renovation Barometer - Construction Sector
Findings from the Q3 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 decreased to 52 for Q3 (compared with 58 for Q2): The expectations for project inquiries and new committed projects declined 6 and 5 points, respectively to 52. The expected business activity indicator for both build-only and design-build firms is lower than for Q2 standing at 53 and 51, respectively. Overall, both business groups expect Q3 business activity to be better than Q2, 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 7.6 weeks nationally at the start of Q3 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 Q3 2023 (6.9 and 3.8 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 (10.1 weeks) driven by build-only and design-build firms in the region (11.1 and 9.0 weeks, respectively). Construction firms in the Middle Atlantic division (including New Jersey, New York and Pennsylvania) report the shortest backlogs (5.7 weeks). See additional subsector and regional data (PDF).
The Recent Business Activity Indicator related to project inquiries and new committed projects increased to 52 in Q2 2024 (up 7 points compared with Q1): This is driven by a 9-point increase in project inquiries in Q2, relative to the previous quarter, and a 4-point increase in new committed projects to 52. Both remodeler groups report improvement in business activity indicators. In particular, the recent business activity indicator is up 11 points for design-build remodelers. It stands at 53 among build-only remodelers (up 3 points compared with Q1). See additional subsector and regional data (PDF).
The Q3 2024 U.S. Houzz Renovation Barometer was fielded from June 29 through July 9, 2024 and garnered responses from 153 build-only remodelers and 362 design-build remodelers (n=515 in the construction sector). See detailed methodology here.
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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.
See Related Stories:
- Read the Press Release
- Read the Data Watch Story: Pros Report Increased Business Activity and Tempered Expectations
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.
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