Houzz’s second-quarter Renovation Barometer for 2016, released this week, shows widespread confidence for all industry sectors including architects, designers, general contractors/remodelers, design-build, specialty building/renovation and specialty landscape/outdoor, with readings of 63 or higher. (The greater the index value relative to 50, the greater the proportion of firms reporting increases in quarterly business activity than those reporting decreases.) According to Houzz, the outlook for the third quarter also looks to be positive for all sectors.

Year-over-year increases in business activity across all sectors tend to be driven by older homeowners. Half or more firms across all sectors report an increase in activity of homeowners ages 35-54 so far in 2016, relative to the same period in 2015 (46-58 percent). Projects from Baby Boomers have increased for many as well (36-51 percent).Projects from Millennials are increasing at a slower rate, with 21-28 percent of firms across all sectors reporting growth in projects from this age group.

Looking at other factors driving increased business activity, a third or more firms across all sectors report that more clients are purchasing high-end products in 2016 relative to the same time in 2015 (32-49 percent), and a quarter or more of firms are seeing more clients are tackling multiple projects at the same time (22-48 percent). In addition, half or more firms report an increase in year-over-year kitchen and bathroom renovations (46-58 percent). A third or more firms across all industry sectors report increases in smart home technology installations and aging-related upgrades (32-45 percent and 30-45 percent, respectively). Many firms also experienced growth in energy efficiency upgrades and eco-friendly/green projects (27-41 percent and 19-46 percent, respectively).

“Barometer readings over the past six quarters have shown consistent confidence in the home renovation industry, despite slight softening in some sectors,” said Nino Sitchinava, principal economist at Houzz. “The increase in Baby Boomer and Gen Xer activity, as well as an uptick in kitchen and bath activity, is consistent with our recent insights from other studies of homeowners and are a great sign of the vitality of our industry.”

The Houzz Renovation Barometer study is conducted quarterly and presents analysis of responses to an online survey sent to a national panel of architects, interior designers, general contractors/remodelers, design-build firms, and building/renovation and landscape/outdoor specialties.

 

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