Q1 Expectations Mixed Among Renovation Professionals, Houzz Barometer Finds

Window & Door
January 15, 2019
Markets
Houzz Inc. released the Q1 2019 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 mixed expectations for home renovation market activity in the first quarter of the year.
 
“Current Barometer readings and qualitative feedback reflect a mixed degree of caution about market conditions among contractors, architects and designers,” says Nino Sitchinava, Houzz principal economist. “It is notable that, relative to a year ago, expectations and recent activity among contractors are more subdued and project backlogs are considerably lighter. In contrast, the sentiments and backlogs of architects and designers are on par with a year ago, likely explained by a boost in new business activity in the last quarter of 2018. That said, businesses overwhelmingly cite rising costs of products and materials and customers’ reluctance to proceed with the projects due to these costs.”
 
The Expected Business Activity Indicator related to project inquiries and new projects decreased to 72 in Q1. The Project Backlog Indicator slightly increased to 4.8 weeks nationally in Q1 and the overall backlog for the construction sector is 1.7 weeks below year-over-year levels. The Recent Business Activity Indicator related to project inquiries and new projects decreased to 67 in Q4. The decline follows a decrease in project inquiry activity and recent new projects activity.
 
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