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8. maj 2018
Houzz Study Finds Strong Outlook for Home Renovation Professionals in 2018
Despite increasing business costs, 2018 Houzz U.S. State of the Industry reports banner 2017


Houzz Inc., the world’s leading platform for home remodeling and design, today released the 2018 Houzz U.S. State of the Industry.* The report provides an outlook on 2018 and review of 2017 performance for residential renovation and design businesses based on data reported by nearly 3,400 professionals in the Houzz community. Companies across all industry sectors anticipate revenue growth in 2018, following positive 2017 results.

“The residential renovation and design industry continues to build on the robust growth of the past four years. Average revenue growth rates hovered around 10 percent annually, with performance exceeding expectations for most firms, and at least one-fifth of businesses hiring more workers each year,” said Nino Sitchinava, principal economist at Houzz. “With market fundamentals aligned in favor of the home improvement industry, 2018 is set to be another great year. That said, businesses are cautious about tightening local labor markets that may hamper growth in many regions, and apparent economic uncertainty on a national level.”

2018 U.S. State of the Industry: Major Findings

  • Bullish on 2018: The majority of companies surveyed have a positive outlook for 2018 (71 to 88 percent). Those in construction-focused and outdoor industry groups are particularly optimistic, with 36 to 44 percent having “a very good” outlook for the year. Companies across industry groups also anticipate demand for their services to improve (65 to 70 percent) and expect an average revenue rate of growth of seven to 12 percent in 2018.
  • Reduced labor availability: Positive growth sentiments are somewhat tempered by expectations that labor availability and costs will worsen (27 to 53 percent and 36 to 57 percent, respectively) despite already constrained labor markets over the past several years. Regardless, two in five construction-focused businesses (40 to 46 percent) and one in five design-related companies (20 to 26 percent) plan to hire in 2018.
  • Increased costs of doing business: While the availability of products and materials is expected to remain stable in 2018 according to two thirds of companies across industry groups (66 to 76 percent), half expect the costs of products and materials to rise (47 to 60 percent). Between increases in the costs of labor and costs of products and materials, it is not surprising that many companies expect the overall costs of doing business to continue to increase in 2018.
  • Economic Uncertainty: Expectations on consumer demand may also be impacted by polarized views of the national economy in 2018. At least a quarter of companies in each industry group expect the national economy to improve (25 to 38 percent), while a meaningful share anticipate conditions will deteriorate (12 to 28 percent). Local economies are expected to improve (31 to 41 percent) or remain unchanged (48 to 58 percent).
Reflecting on 2017
  • Strong results: The majority of firms reported positive results in 2017, with at least three in five companies showing revenue increases (61 to 73 percent). At least two in five experienced annual growth rates of 10 percent or more (44 to 60 percent) and approximately one fifth reported growth rates of 25 percent or higher (16 to 21 percent).
  • Accelerated growth: Architects, general contractors, and design-build companies showed accelerated average annual revenue growth rates (eight, 11 and 11 percent, respectively) compared to 2016 rates (seven, nine and eight percent, respectively). Other companies reported average revenue growth rates in line with 2016 rates.
  • Increased costs: Consistent with 2016 findings, two in five companies across industry groups reported a surge in the costs of doing business in 2017 (54 to 79 percent versus 58 to 76 percent in 2016). Those in the construction sector continued to see the most widespread cost increases, specifically three in four general contractors, design-build firms, and building and renovation specialty firms (73 to 79 percent).

The full 2018 Houzz U.S. State of the Industry report can be found here.

There are more than 1.5 million active home renovation and design professionals on Houzz, including architects, interior designers, home builders and design and build firms.

* The Houzz U.S. State of the Industry was conducted among home renovation firms in the Houzz U.S. community that offer services related primarily to residential renovation and/or design. Companies were grouped into seven industry sectors including, architects, interior designers, general contractors and remodelers, design-build firms, building and renovation specialty firms, landscape and outdoor specialty firms, and decorating specialty firms. The study was fielded from November 28, 2017 to January 31, 3018. N=3,378.

About Houzz

Houzz is the leading platform for home remodeling and design, providing people with everything they need to improve their homes from start to finish – online or from a mobile device. From decorating a small room to building a custom home and everything in between, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals across the country and around the world. With the largest residential design database in the world and a vibrant community empowered by technology, Houzz is the easiest way for people to find inspiration, get advice, buy products and hire the professionals they need to help turn their ideas into reality. Headquartered in Palo Alto, Calif., Houzz also has international offices in London, Berlin, Sydney, Moscow, Tel Aviv and Tokyo. Houzz is a registered trademark of Houzz Inc. worldwide. For more information, visit www.houzz.com.