Houzz Inc., the leading platform for home remodeling and design, today released the Q3 2015 Houzz Renovation Barometer, which tracks confidence in the home renovation market among industry professionals. The Q3 2015 Barometer revealed that optimism in quarter-over-quarter market improvements remains high across industry professionals, with high index scores of 65* or higher in market confidence. However, readings for Q3 of 2015 are six to 11 percent lower than readings from Q2 across all industry groups. Landscape specialty firms are the exception, having reported a decrease of 21 percent, likely due to seasonal patterns.
Hiring remains a top challenge for renovation professionals across industry sectors in Q3. General contractors (GCs), remodelers and design-build firms report that carpenters are in the shortest supply across the U.S. (cited by 45 percent of firms), followed by framers (25 percent), tile (22 percent) and drywall specialists (21 percent). Interestingly, more than one in five architects and interior designers report shortages of general contractors (24 percent and 21 percent respectively). Labor shortages are reported to be most prevalent in the Midwest and least severe in the Northeast.
“Barometer readings consistently show year-over-year gains in the past three quarters of 2015, pointing to healthy improvements in the remodeling industry in 2015 over 2014,” said Nino Sitchinava, principal economist at Houzz. “The headwinds slowing overall industry performance are widespread labor shortages, particularly in the Midwest.”
Additional findings from the Q3 2015 Houzz Barometer include:
The full Houzz Renovation Barometer Q3 2015 report can be found here.
The Houzz Renovation Barometer study is conducted quarterly and presents analysis of responses to an online survey sent out to a national U.S. panel of architects, interior designers, general contractors/remodelers, design-build firms, and building/renovation and landscape/outdoor specialties. N=2688.
The next Houzz Renovation Barometer release date is January 20, 2016.
*The greater the index value relative to 50, the greater the proportion of firms reporting increases in quarterly business activity than those reporting decreases.
Houzz is the leading platform for home remodeling and design, providing people with everything they need to improve their homes from start to finish – online or from a mobile device. From decorating a small room to building a custom home and everything in between, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals across the country and around the world. With the largest residential design database in the world and a vibrant community empowered by technology, Houzz is the easiest way for people to find inspiration, get advice, buy products and hire the professionals they need to help turn their ideas into reality. Headquartered in Palo Alto, Calif., Houzz also has international offices in London, Berlin, Sydney, Moscow and Tokyo. Houzz and the Houzz logo are registered trademarks of Houzz Inc. worldwide. For more information, visit houzz.com.