Houzz Renovation Barometer tracks confidence in the home renovation market among industry professionals. More than 5,000 U.S. residential service providers are members of the Houzz Industry Panel and provide quarterly updates on the health of the industry.
Findings from the Q3 2016 Houzz Renovation Barometer include:
- Quarter-Over-Quarter Uptick: The Houzz Renovation Barometer, which tracks industry optimism in year-over-year and quarter-over-quarter market improvements, posted high Q3 readings across all industry groups (60-72 out of 100), reflecting widespread industry confidence in quarter-over-quarter market gains. The readings for Q3 2016 are in line with the Q3 2015 results for most industry groups. Outlook for Q4 2016 is positive despite expected seasonal slow down.
- Year-Over-Year Growth Continues to Slow for Architects: The Barometer posted high year-over-year readings of 64-77 in the third quarter of 2016, which is in line with scores for Q2 2016 for most industry groups (66-77). Architects continued to report a five-quarter long decline in confidence in residential market gains, while designers broke the decline streak with a strong uptick in year-over-year scores in Q3 2016 relative to Q2 2016 (70 vs. 66, respectively).
- Labor Shortages Affecting Cost to Clients: Consistent with past Barometer findings, nearly four in five remodelers and design-build firms report moderate to severe shortages of skilled trades and general laborers. Half of general contractors, remodelers and design-build firms report that labor shortages are driving increases in costs to hire subcontractors and employees. These rising costs translate to rising project costs for clients, as reported by 59% of firms.
Download the current quarterly report to learn about the current state of professional confidence in the quarter-over-quarter and year-over-year improvements in the home renovation market on national, state and metro levels.