Data Watch: Houzz Renovation Barometer Signals Confidence
Many architects, builders, designers and landscape professionals are seeing an uptick in the number and size of projects they’re taking on in the first three months of this year, compared with the last three months of 2014. This increase in business activity, as reported in the new Houzz Renovation Barometer, signals continued confidence in the recovering home remodeling industry, says Nino Sitchinava, principal economist at Houzz.
As spring approaches, landscape and other outdoor professionals are enjoying significant gains in business confidence this quarter over the last three months of 2014 (26 percent increase). But all professional groups are optimistic that the next quarter will be even more rewarding for their businesses.
For more, check out the full report below.
This graph reflects the quarter-over-quarter gains in business activity among all the professional groups polled. Basically, an index number higher than 50 means that those professionals reported an increase in business activity. The higher the number, the more increase in activity.
Here you can see that all professionals reported gains in the first quarter of 2015 compared with the last quarter of 2014, with an index number ranging from 71 for building and renovation companies to 78 for landscape and outdoor firms, which saw the biggest gains for the quarter.
You can also see that all groups anticipate even more gains in the second quarter of 2015, as indicated by the dark green bars that show index numbers ranging from 74 for architects to 83 for landscape and outdoor professionals.
This chart breaks down the increases across key business activities, which are the number of inquiries professionals receive about potential projects, the number of new projects they secure and the size of those projects.
So, design-build firms, for example, saw a significant increase in the number of inquiries they received during the first three months of 2015 compared with the last three months of 2014.
Meanwhile, the chart shows that general contractors, remodelers and landscape and outdoor professionals are optimistic about significant increases in activity for the second quarter of 2015.
Broken down by region, you can get a sense of how Northeast winter storms affected business activity in the last quarter of 2014 and the first quarter of 2015. But all Northeast professional groups remain optimistic about the second quarter of this year.
On the other hand, look at the index number for landscape and outdoor professionals in the West for the first quarter of 2014: 84. That high number of increased business activity is probably due to the moderate winter climate in the western part of the United States, which makes it easier for professionals to work outdoors on projects, but could also be due to homeowners responding to drought conditions with inquiries about creating more water-wise outdoor spaces.
The following charts reflect increases or decreases in business activity comparing quarters for this year versus the same time periods last year.
All in all, a significant majority of home remodeling professionals are confident that the foreseeable future will be positive for business.
Tell us: How is your business outlook for the coming months?
