Home Renovation Market Activity Keeps Pace in Q4, Houzz Barometer Finds

Window & Door
October 16, 2018
Markets

Houzz Inc. released the Q4 2018 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector and the architectural and design services sector. The Barometer points to a strong outlook for the home renovation market in the last quarter of the year.

“Home renovation professionals experienced consistent new business gains and backlogs in the third quarter in both sectors, fueling optimism for the year end,” says Nino Sitchinava, Houzz principal economist. “While market fundamentals—such as high home equity, aging homes and older homeowners staying in place—drive the demand nationally, southern and western regions continue to be shaped by recent hurricane and wildfire activity. Overall, rising costs of raw materials and persistent skilled labor shortages create headwinds across all regions and industry sectors.”

In the construction sector, the Expected Business Activity Indicator related to project inquiries and new projects increased six points in Q4, relative to Q3. The Backlog Indicator decreased to 4.5 weeks nationally in Q4, down two weeks relative to Q3. Overall backlog for the construction sector is roughly half a week below year-over-year levels.