Tracking confidence in the home renovation market among industry pros, the Q3 2016 Houzz Renovation Barometer, released this morning, has found that “confidence remains high across renovation industry despite seasonal slowdown.” The survey targeted interior designers as well as architects, general contractors/remodelers, and design-build, specialty building/renovation and specialty landscape/outdoor pros. Among the findings are hiring and labor challenges, including nearly four in five remodelers and design-build firms reporting moderate to severe labor shortages of skilled trades and general laborers; and a rising amount of time needed to complete projects.
Houzz explains, “The outlook for Q4 continues to be positive for all sectors despite expected seasonal slowdown. Architects, designers, design-build companies, GCs and specialty building/renovation firms report scores up to 5 percent lower than Q2 2016 scores. Landscape/outdoor specialty firms are experiencing a stronger seasonal cooling, with a 15 percent drop in confidence.” Other report findings include higher costs on the employer end, which resulted in higher costs for clients; yet, despite this, there was a minimal decline in project quality and client satisfaction.
“The sustained growth in consumer demand for residential remodeling services, as indicated by the Houzz Renovation Barometer, is naturally driving prices for remodeling services up. Yet, with systematic labor shortages and no major shift in labor conditions expected in the near term, consumers will continue to experience significant increases in project costs and difficulty finding qualified remodelers,” says Nino Sitchinava, principal economist at Houzz. “At the same time, remodelers will continue to be squeezed to do more with less, be more selective about the nature of projects they take on, and be more cautious about committing to project cost and timeline estimates.”
Check out the full report.