Industry Research
Renovation Barometer
2025Q2 Houzz Renovation Barometer - Construction Sector
Findings from the Q2 2025 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 6.4 weeks nationally at the start of Q2 2025: The Project Backlog Indicator for the construction sector is 0.1 weeks shorter than a year ago. Wait times for build-only remodelers is 4.8 weeks, which is 2 weeks shorter compared with Q2 2024. In contrast, design-build remodelers report 1.8 weeks longer wait times at 8 weeks when compared with Q2 2024.
Geographically, backlogs for the construction sector vary significantly, from 3.5 weeks in the West South Central (Oklahoma, Texas, Arkansas, and Louisiana) to 11.8 weeks in the New England division (Maine, Massachusetts, Connecticut, New Hampshire, Rhode Island, and Vermont).
The Recent Business Activity Indicator related to project inquiries and new committed projects dropped to 42 in Q1 2025 (down 12 points compared with Q4 2024): This is driven by a significant 18-point decrease in project inquiries in Q1, relative to the previous quarter, and a slight decline in new committed projects to 43. Among the two industry groups, the indicators are below the 50-point line, as more businesses report declines in business activity rather than increases. In particular, the recent business activity indicator is down 14 points for build-only and 9 points for design-build remodelers, reaching 39 and 46 points, respectively.
The Q2 2025 U.S. Houzz Renovation Barometer was fielded from March 14 through March 28th, 2025 and garnered responses from 155 build-only remodelers and 358 design-build remodelers (n=513 in the construction sector).
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The Expected Business Activity Indicator related to project inquiries and new committed projects declined to 59 for Q2 (compared with 65 for Q1): This drop is mainly driven by a 12-point decline in expectations for project inquiries in Q2. The expectations for new committed projects inched down to 61 for Q2 (from 62 for Q1). Among the two industry groups, expectations for business activity in Q2 diverge. While build-only remodelers expect an uptick in Q2 business activity, with the indicator reaching 68, design-build firms are less bullish at 49 (down from 66).