2024Q4 Houzz Renovation Barometer - Construction Sector
Findings from the Q4 2024 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
The Project Backlog Indicator is 10.5 weeks nationally at the start of Q4 2024: The Project Backlog Indicator for the construction sector is 0.9 weeks shorter than a year ago. Wait times for build-only remodelers is 8.3 weeks, which is 2.3 weeks shorter compared with Q4 2023. In contrast, design-build remodelers report longer wait times when compared with Q4, 2023 (0.6 weeks longer at 12.8).
Geographically, backlogs for the construction sector vary significantly, from 3.4 weeks in the East South Central division (Alabama, Tennessee, Kentucky and Mississippi) to 14.3 weeks in the West North Central division (MIssouri, South Dakota, North Dakota, Iowa, Minnesota, Kansas and Nebraska).
The Recent Business Activity Indicator related to project inquiries and new committed projects decreased to 47 in Q3 2024 (down 5 points compared with Q2): This is driven by a 6-point decrease in project inquiries in Q3, relative to the previous quarter, and a 4-point decrease in new committed projects to 48. Both remodeler groups report a dip in business activity indicators. In particular, the recent business activity indicator is down 3 points for design-build remodelers and down 7 points for build-only remodelers (reaching 48 and 46 points, respectively). A score below the 50-point line is an indicator for a slower activity in Q3 compared with Q2.
The Q4 2024 U.S. Houzz Renovation Barometer was fielded from September 26 through October 9, 2024 and garnered responses from 118 build-only remodelers and 310 design-build remodelers (n=428 in the construction sector).
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The Expected Business Activity Indicator related to project inquiries and new committed projects increased to 62 for Q4 (compared with 52 for Q3): The expectations for project inquiries increased by 7 points to 59 and new committed projects increased by 12 points to 64. The expected business activity indicator for both build-only and design-build firms is higher than in Q3, reaching 62 and 61, respectively. Overall, both groups expect Q4 business activity to improve compared with Q3, as a score greater than 50 points indicates that more businesses expect quarter-over-quarter increases rather than decreases in business activity.