Houzz Inc., the leading platform for home remodeling and design, today released the 2017 State of the Industry. The report provides an overview of 2016 performance and an outlook on 2017 for residential renovation and design businesses based on data reported by more than 4,800 professionals in the Houzz community. The majority of firms anticipate revenue and profit growth in 2017, following a very strong year in 2016. Houzz also released today the Q4 2016 Houzz Renovation Barometer, which shows continued year-over-year and quarter-over-quarter market improvements across all industry groups.
“Based on some estimates, residential remodeling activity in 2016 surpassed the pre-recession peak, and by far outpaced the recovery of the new residential construction sector. Several market fundamentals propelled this expansion, including aging housing stock, recovered home prices, homeownership and home buying concentrated in older and more established households, and finally a massive Baby Boomer population planning retirement in current homes, among others,” said Nino Sitchinava, principal economist at Houzz. “Houzz research finds that the steady growth of the residential remodeling spend is driven by homeowners tackling multiple projects at a time, embarking on projects with a large scope, and/or installing high end finishes. This trend is likely continue into 2017.”
2017 State of the Industry: Major Findings
Q4 2016 Houzz Renovation Barometer: Continued Optimism in Renovation Market Gains
The Q4 2016 Barometer, which tracks industry optimism in year-over-year and quarter-over-quarter market improvements, posted high year-over-year readings of 61 or higher across industry groups, indicating high optimism in continued gains in the home renovation market. The greater the index value relative to 50, the greater the proportion of firms reporting year-over-year increases in quarterly business activity than those reporting decreases.
Additionally, Houzz Renovation Barometer posted quarter-over-quarter readings of 54 or higher points across all industry groups (54-67 out of 100). Typical seasonal cooling is reflected in Q4 2016 scores being 6 percent to 14 percent lower than Q3 2016 scores for most industry groups, while still being comparable to the scores during the same period in 2015. This seasonal slowdown is felt across all regions and most industry sectors, although slightly less so for firms in the West and South. The Houzz Renovation Barometer posted high quarter-over-quarter readings for Q1 2017 (72-78), however, reflecting widespread optimism for the new year.
The full 2016 Houzz State of the Industry can be found here, and the complete Houzz Renovation Barometer Q4 2017 report can be found here.
Notes to Editors
The Houzz U.S. State of the Industry Study is conducted annually among home renovation firms on Houzz that offer services related primarily to residential renovation and/or design. The study was fielded December 8, 2016 – January 9, 2017. N=4859.
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. The greater the index value relative to 50, the greater the proportion of firms reporting increases in quarterly business activity than those reporting decreases. N=2223.
The next Houzz Renovation Barometer release date is April 13, 2017.
Houzz is the leading platform for home renovation 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, find 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.