2017 Houzz State of the Industry Reports 2016 Strongest in Last 10 Years

Window & Door
January 24, 2017
Markets

Houzz released its 2017 State of the Industry report, which 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.

Highlights of the 2017 State of the Industry report include:

 

  • A third or more firms across industry groups report that 2016 was their best year in a decade. Two-thirds report an increase in revenue in 2016
  • The majority of home renovation and design businesses on Houzz anticipate more widespread revenue growth in 2017 than they experienced in 2016
  • Increased cost of doing business: At least three in five companies reported that the cost of doing business increased in 2016, in line with 2015, with labor, products and materials cited as the most cited cost drivers.

“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,” says 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 to continue into 2017.”

Read the full report here, and the Q4 2016 Houzz Renovation Barometer here.