22
© 2017 Houzz Inc. Q2 2017 HOUZZ RENOVATION BAROMETER July 2017

Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

Q2 2017 HOUZZ RENOVATION BAROMETER July 2017

Page 2: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 2

Big Ideas

U.S. Houzz Renovation Barometer | July 2017

•  The Houzz Renovation Barometer, which tracks industry optimism in year-over-year and quarter-over-quarter market

changes, posted Q2 readings exceeding 50 points across all industry groups (63 to 78 out of 100), as more firms

reported market activity increasing than those reporting it decreasing quarter over quarter. Looking forward to the

third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter scores of

64 to 76.

•  Barometer readings for Q2 2017 are in line with Q2 2016, with confidence among building and outdoor specialty

companies rebounding after a dip reported last quarter. In the Northeast and Midwest, the confidence of architects

somewhat weakened compared with Q2 2016, while readings for design-build firms picked up year over year in the

South and West.

•  The newly introduced Houzz Renovation Barometer Backlog Index shows a project backlog of 4.3 to 7.4 weeks on

average across sectors, indicating significant delays before companies can take on new projects. Design-build

companies and general contractors/remodelers have the longest backlog, at 7.4 and 7 weeks on average,

respectively, while backlogs are longest in the West across all sectors.

•  Similar to last year, many remodelers continue to report a shift in their project mix toward larger-scale and higher-end

projects. A third are experiencing a growing demand for smart home technologies and increased preparation for

retirement through upgrades related to aging in place, among other trends.

Page 3: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 3

Spotlight on Project Trends 4-6

Houzz Renovation Barometer: Project Backlog 7-10

Houzz Renovation Barometer: Quarter-Over-Quarter Confidence Scores 11-14

Houzz Renovation Barometer: Year-Over-Year Confidence Scores 15-16

Methodology 17-18

Appendix 19-22

Contents

U.S. Houzz Renovation Barometer | July 2017

Pages Section

Page 4: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

SPOTLIGHT ON PROJECT TRENDS

4 U.S. Houzz Renovation Barometer | July 2017

Page 5: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

54%

37% 35%

49%

38%

30% 27%

Kitchen/Bathroom Renovations

Clients Tackling Multiple Projects at the Same

Time

Clients Purchasing High-End Products

Clients Working on Fixer-Uppers

5

Similar to last year, many remodelers continue to report a shift in their project mix toward larger-scale and higher-end projects. Nearly half of GCs/remodelers and design-build companies report a year-over-year increase in kitchen and/or bathroom renovations in the first half of 2017 (49% on net*). Furthermore, a significant share of remodelers report an increase in the number of homeowners tackling multiple projects at the same time (38% on net*), purchasing high-end products (30% on net*) and/or working on fixer-upper homes (27% on net*).

Large-Scale Renovations Still on the Rise

U.S. Houzz Renovation Barometer | July 2017

*Percentage (%) of firms reporting increases minus percentage (%) of firms reporting decreases in the project types so far this year relative to the same period last year.

2017

2016

NA

% of FIRMS REPORTING YEAR-OVER-YEAR INCREASES MINUS THOSE REPORTING DECREASES IN PROJECT TYPES – GCS/REMODELERS/DESIGN-BUILD COMPANIES COMBINED*

Page 6: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

35% 33% 30%

13% 11%

34% 33% 28%

13% 10%

Smart Home Projects

Aging-in-Place Projects

Energy-Efficiency Projects

Green Projects

Health-Related Projects

6

Increased demand for smart home technologies continues, reported by a third of GCs/remodelers and design-build companies (34% on net*). Preparation for retirement among baby boomers is another major trend, with a third of remodelers seeing a rise in aging-in-place upgrades year over year (33% on net*).

Smart Homes and Preparation for Retirement on Trend

U.S. Houzz Renovation Barometer | July 2017

*Percentage (%) of firms reporting increases minus percentage (%) of firms reporting decreases in the project types so far this year relative to the same period last year. **Smart home projects refers to installation of connected devices, smart thermostats, etc.; aging-in-place projects refers to removing trip hazards, improving accessibility, etc.; energy-efficiency projects refers to upgrades to heating, insulation, etc.; green projects refers to installation of sustainably sourced/recycled materials, alternative energy systems, etc.; and health-related projects refers to improving air quality, removing lead/asbestos/mold, etc.

2017

2016

% of FIRMS REPORTING YEAR-OVER-YEAR INCREASES MINUS THOSE REPORTING DECREASES IN PROJECT TYPES – GCS/REMODELERS/DESIGN-BUILD COMPANIES COMBINED**

Page 7: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

HOUZZ RENOVATION BAROMETER

PROJECT BACKLOG

7 U.S. Houzz Renovation Barometer | July 2017

Page 8: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

5.2 5.6

Start of Q3 2017

5.9

4.3

Start of Q3 2017

7.0 7.4

Start of Q3 2017

Specialty: Building/Renovation Specialty: Landscape/Outdoor

Architects Designers

GCs/Remodelers Design-Build

8

The newly introduced Houzz Renovation Barometer Backlog Index shows a project backlog of 4.3 weeks to 7.4 weeks across sectors, reflecting the delay an average firm faces in starting a new midsize project due to its current project commitments. Design-build companies and GCs/remodelers have the longest backlogs, at 7 and 7.4 weeks on average, respectively. Interior designers have the shortest backlog, at 4.3 weeks.

Introducing a Project Backlog Index

U.S. Houzz Renovation Barometer | July 2017

HOUZZ RENOVATION BAROMETER – AVERAGE PROJECT BACKLOGS IN WEEKS*

*Project backlog refers to the number of weeks until a firm can start work on a new midsized project given its current in-progress projects or ordersand upcoming confirmed projects or orders.

Page 9: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

6.0 4.2

4.1 3.5

6.2 3.9

6.5 4.9

6.4 7.7

6.9 6.9

6.5 6.5

7.9 8.3

6.3 5.8

5.3 5.9

4.9 4.7

5.0 6.3

9

The regional Barometer Backlog Index exceeds three weeks across all industry groups and regions. Western firms report the longest delays before they are able to start work on a new midsized project, ranging from 4.9 to 8.3 weeks, on average, across sectors. GCs/remodelers and design-build companies appear to be the busiest industry group in every region, with backlogs ranging from 6.4 to 8.3 weeks, on average across regions.

Longest Project Backlog in the West

U.S. Houzz Renovation Barometer | July 2017

HOUZZ RENOVATION BAROMETER – REGIONAL AVERAGE PROJECT BACKLOGS IN WEEKS*

NORTHEAST

MIDWEST

WEST

SOUTH

Specialty: Building/Renovation Specialty: Landscape/Outdoor

Architects Designers

GCs/Remodelers Design-Build

*Project backlog refers to the number of weeks until a firm can start work on a new midsized project given its current in-progress projects or ordersand upcoming confirmed projects or orders.

Page 10: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

5.7

5.6

5.5

5.4

5.3

4.8

4.8

4.4

3.2

2.9

Dallas-Fort Worth-Arlington, TX

Washington-Arlington-Alexandria, DC-VA-MD-WV

Atlanta-Sandy Springs-Marietta, GA

San Diego-Carlsbad-San Marcos, CA

Miami-Fort Lauderdale-Pompano Beach, FL†

New York-Northern New Jersey-Long Island, NY-NJ-PA

Phoenix-Mesa-Scottsdale, AZ

Detroit-Warren-Livonia, MI†

Chicago-Naperville-Joliet, IL-IN-WI

Houston-Sugar Land-Baytown, TX

13.9

13.5

13.1

12.6

9.7

9.1

7.9

7.6

6.8

5.9

Boston-Cambridge-Quincy, MA-NH

Seattle-Tacoma-Bellevue, WA

Portland-Vancouver-Beaverton, OR-WA

San Jose-Sunnyvale-Santa Clara, CA

Minneapolis-St. Paul-Bloomington, MN-WI

San Francisco-Oakland-Fremont, CA

Philadelphia-Camden-Wilmington, PA-NJ-DE-MD

Austin-Round Rock, TX†

Los Angeles-Long Beach-Santa Ana, CA

Denver-Aurora, CO

10

Metro-Level Drilldown: GCs & Design-Build Companies

U.S. Houzz Renovation Barometer | July 2017

At the metro level, the Barometer Backlog Index shows that GCs/remodelers and design-build companies in the Boston, Seattle, Portland, and San Jose metro areas have the longest project backlog, exceeding three months (12.6 to 13.9 weeks) on average. In contrast, remodelers in the Chicago and Houston metro areas have the shortest delays and are able to start work on a new midsized project in as little as three weeks (3.2 and 2.9 weeks, respectively) on average.

TOP METRO AREAS AVERAGE PROJECT BACKLOGS IN WEEKS – GCS/REMODELERS/DESIGN-BUILD COMPANIES COMBINED*

*Project backlog refers to the number of weeks until a firm can start work on a new midsized project given its current in-progress projects or orders and upcoming confirmed projects or orders. Interpret metro-level backlog estimates with caution due to small sample size (N<50). †Denotes limited sample size of four to 10 respondents.

Page 11: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

HOUZZ RENOVATION BAROMETER

QUARTER-OVER-QUARTER CONFIDENCE SCORES

11 U.S. Houzz Renovation Barometer | July 2017

Page 12: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

64

73

70

65

62

68

63

60

54

66

63 64

69

72 73

67 66

70

66 66 66 68

66

73

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

66

75

78

72

65

74 74 72

67

74 75 76

69

77 78

70

64

75

71 69

65

76

73 74

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

68

71

77

73

66

72 73 72

64

69

73

76

61

78

82

65

58

73

78

66

57

67

78

66

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Specialty: Building/Renovation Specialty: Landscape/Outdoor

Architects Designers

GCs/Remodelers Design-Build

12

The Houzz Renovation Barometer posted readings of 63 to 78 in Q2 2017, indicating continued optimism in quarter-over-quarter market gains across all sectors. The readings for all industry groups are in line with readings for the same quarter of 2016, with the confidence of building and outdoor specialty companies rebounding after a weakening reported last quarter. Expectations for Q3 are especially strong among design-build and building specialty companies (74 and 76, respectively) compared with a year ago (70 and 72, respectively).

Industry Confidence for Q3 is High

*A reading over 50 indicates that more firms are reporting that business activity is higher than those reporting it is lower in a given quarter relative to the prior quarter. The greater the index value relative to 50, the greater the proportion of firms reporting increases in quarterly business activity than those reporting decreases. Business activity is measured as number of inquiries, number of new projects/orders, and size of new projects/orders.

Q3E reflects expectations for the upcoming quarter.

U.S. Houzz Renovation Barometer | July 2017

HOUZZ RENOVATION BAROMETER – QUARTER-OVER-QUARTER CONFIDENCE SCORES*

Page 13: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

59 65 71 70 69

74

55 65

71 68 69 69 51

66 66 66 65 59 58 65 68 71

66 63 55

64 71 70 69

76

59 68 72 70 73

66

Architects Designers GCs/Remodelers Design-Build Specialty: Specialty: Building/Renovation Landscape/Outdoor

65 67 76 72 74

81

63 66 73 69

74 64 56 64 69 64 63 55

74 69

78 80 73 69 67 65

77 76 76 78

66 74

79 76 77

64

NO. OF INQUIRIES

NO. OF NEW PROJECTS/ORDERS

SIZE OF NEW PROJECTS/ORDERS

65 68 76 72 76

81

62 68 73 69 72

67 56 67 67 64 63 58 67 70 75 77

68 58 65 67

77 73 74 79

65 75 78 76 79

68

HOUZZ RENOVATION BAROMETER – COMPONENTS OF QUARTER-OVER-QUARTER CONFIDENCE SCORES*

13

New Inquiries Boost Confidence in Construction Sector

*See footnote on page 12 for interpretation of the scores. The Houzz Renovation Barometer is a simple average of the scores of the three components. **YOY change indicates an increase or decrease of 3 points or more in Q2 2017 relative to Q2 2016.

Q3E reflects expectations for the upcoming quarter.

U.S. Houzz Renovation Barometer | July 2017

More firms continued to report quarter-over-quarter increases than decreases in the number of inquiries and the number and size of new projects in Q2 2017, as reflected by Barometer readings exceeding 50 across all industry groups (65 to 78, 65 to 79, and 55 to 76, respectively). Design-build companies are seeing a more widespread influx of inquires (76) compared with Q2 2016 (72).

YOY**

YOY**

YOY**

Page 14: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Q3E ’17

61 66 76 70 75 75

57 65 72 66

73 70 56 66 66 65 61 63

66 69 74 75 67 70 64 66

77 73 69 76

66 75 77 71

79 68

Architects Designers GCs/Remodelers Design-Build Specialty: Specialty: Building/Renovation Landscape/Outdoor

NORTHEAST

MIDWEST

WEST

SOUTH

59 65 74 73 74

86

63 66 67 69 69 64 54 67 62 55 68 53 64 71 69 74

65 54 54 67 76 72 78 77

63 75 74 74 73

66

72 67 73 72 71 83

60 66 76 71 74

59 53 60 67 66 63 43

73 65

75 79 68

65

65 67 72 74 73 84

64 67 74 77 77

57

65 67 73 71 72 77 61 68

75 70 70 70 55 67 70 68 64 68 67 67

76 75 76 74 65 64 75 75 72 75

59 72

79 75 77 69

14

Weakened Confidence of Architects in Some Regions

Q3E reflects expectations for the upcoming quarter.

U.S. Houzz Renovation Barometer | July 2017

91

Barometer regional scores exceed 60 for nearly every industry group in Q2 2017. In the Northeast and Midwest, the confidence of architects somewhat weakened (54 and 65, respectively) compared with Q2 2016 (59 and 72, respectively), while readings for design-build firms picked up year over year in the South and West.

*Click the links to see the Houzz Renovation Barometer by state and by major metro area. See footnote on page 12 for interpretation of the scores. **YOY change indicates an increase or decrease of 3 points or more in Q2 2017 relative to Q2 2016.

YOY**

YOY**

YOY**

YOY**

YOY**

YOY**

HOUZZ RENOVATION BAROMETER – REGIONAL QUARTER-OVER-QUARTER CONFIDENCE SCORES*

YOY** YOY**

YOY**

Page 15: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 15 U.S. Houzz Renovation Barometer | July 2017

HOUZZ RENOVATION BAROMETER

YEAR-OVER-YEAR CONFIDENCE SCORES

Page 16: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

74 76 76 75

72 70

67

64

61

65 65

76 74 75 74 73 72

66

70 72 71

68

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

77 76

80 78

76 78

76 77 75 76 76

79 79 80 79

76 75 73 73 73

77

74

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

80

77 79

77 75 74 74 74 73 73 72

80

77

83

79

75

78 77 75

70 72

78

Q4 ’14

Q1 ’15

Q2 ’15

Q3 ’15

Q4 ’15

Q1 ’16

Q2 ’16

Q3 ’16

Q4 ’16

Q1 ’17

Q2 ’17

Specialty: Building/Renovation Specialty: Landscape/Outdoor

Architects Designers

GCs/Remodelers Design-Build

16

*A reading over 50 indicates that more firms are reporting that business activity is higher than those reporting it is lower in a given quarter relative to the same quarter of the prior year. The greater the index value relative to 50, the greater the proportion of firms reporting increases in quarterly business activity than those reporting decreases. Business activity is measured as number of inquiries, number of new projects/orders, and size of new projects/orders.

U.S. Houzz Renovation Barometer | July 2017

The Barometer posted year-over-year readings of 65 to 78 in the second quarter of 2017, indicating high optimism in continued year-over-year gains in the home renovation market. Furthermore, these scores are in line with or exceed Q1 2017 scores (65 to 77).

Outdoor Companies Gain Steam

HOUZZ RENOVATION BAROMETER – YEAR-OVER-YEAR CONFIDENCE SCORES*

Page 17: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

METHODOLOGY

17 U.S. Houzz Renovation Barometer | July 2017

Page 18: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

Methodology

The Houzz Renovation Barometer tracks quarterly fluctuations in business activity related to renovation of owner-occupied existing homes. The study is conducted quarterly and presents an analysis of responses to an online survey sent out to a national U.S. panel of architects, interior designers, general contractors/remodelers, design-build firms, and building/renovation and landscape/outdoor specialties. The Houzz Renovation Barometer survey for the current quarter was fielded June 27 to July 10, 2017. N = 2,408 (320 architects, 464 interior and building designers, 552 general contractors/remodelers, 441 design-build firms, 451 building/renovation specialties1 and 210 landscape/outdoor specialties2).

Index Construction Method: The Houzz Renovation Barometer survey asks professionals to indicate whether certain business activities increased, decreased, or stayed about the same in a given quarter; changes in activity are measured quarter over quarter and year over year. Business activity refers to number of inquiries, number of new projects/orders, and average size of new projects/orders. The final Houzz Renovation Barometer is constructed as a diffusion index that 1) sums up the proportion of firms reporting increases in a given business activity and one-half of the proportion of firms reporting no change in the activity; and 2) averages the sums across the three components, with equal weights assigned to each component. Diffusion indices are a widely accepted method for tracking turning points in the market. For more information on the methodology, see U.S. Houzz Barometer Study, February 2015.

18

1 Building/renovation specialties include replacement contractors (e.g., carpenters) and product installers/manufacturers/resellers (e.g., cabinetry). 2 Landscape/outdoor specialties include landscape architects, designers, and contractors; outdoor replacement trades (pavers); and outdoor product installers/manufacturers/resellers (e.g., pools and spas).

U.S. Houzz Renovation Barometer | July 2017

Page 19: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc.

APPENDIX

19 U.S. Houzz Renovation Barometer | July 2017

Page 20: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 20 U.S. Houzz Renovation Barometer | July 2017

YEAR-OVER-YEAR CHANGES IN PROJECT TYPES*

Appendix A: Reported Project Trends

    Kitchen/Bathroom

Renovations Clients Tackling Multiple

Projects at the Same Time     Decrease No Change Increase Decrease No Change Increase

  Architects 10% 52% 37% 14% 61% 25%

  Designers 9% 35% 55% 14% 48% 39%

  GCs/Remodelers 5% 41% 53% 7% 49% 44%

  Design-Build 7% 36% 57% 8% 44% 48%

  Specialty: Building/Renovation 8% 42% 49% 7% 52% 40%

  Specialty: Landscape/Outdoor 5% 53% 43% 6% 47% 46%

    Clients Purchasing High-End Products

Clients Working on Fixer-Uppers

    Decrease No Change Increase Decrease No Change Increase

  Architects 18% 49% 33% 13% 55% 32%

  Designers 18% 43% 39% 9% 54% 38%

  GCs/Remodelers 9% 52% 39% 8% 58% 35%

  Design-Build 12% 44% 43% 8% 58% 34%

  Specialty: Building/Renovation 13% 47% 40% 8% 50% 43%

  Specialty: Landscape/Outdoor 11% 45% 44% 5% 55% 39%

*Percentage (%) of firms reporting increases minus percentage (%) of firms reporting decreases in the project types so far this year relative to the same period last year.

Page 21: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 21 U.S. Houzz Renovation Barometer | July 2017

YEAR-OVER-YEAR CHANGES IN PROJECT TYPES*

Appendix B: Reported Project Motivations

    Smart Home

Projects Aging-in-Place

Projects Energy-Efficiency

Projects     Decrease No Change Increase Decrease No Change Increase Decrease No Change Increase

  Architects 4% 60% 36% 5% 52% 43% 4% 58% 38%

  Designers 4% 52% 44% 2% 65% 33% 3% 69% 28%

  GCs/Remodelers 4% 58% 38% 5% 64% 31% 4% 64% 32%

  Design-Build 3% 60% 37% 1% 57% 43% 1% 70% 29%

  Specialty: Building/Renovation 3% 57% 40% 3% 70% 27% 3% 64% 33%

  Specialty: Landscape/Outdoor 5% 33% 62% 0% 60% 40% 10% 58% 32%

    Green

Projects Health-Related

Projects      

    Decrease No Change Increase Decrease No Change Increase      

  Architects 11% 66% 24% 7% 77% 16%      

  Designers 7% 77% 16% 4% 81% 15%      

  GCs/Remodelers 10% 67% 23% 7% 78% 15%      

  Design-Build 7% 72% 20% 5% 77% 18%      

  Specialty: Building/Renovation 7% 67% 27% 4% 76% 20%      

  Specialty: Landscape/Outdoor 8% 46% 46% 6% 64% 30%      

*Percentage (%) of firms reporting increases minus percentage (%) of firms reporting decreases in the project types so far this year (2017) relative to the same period last year (2016). **Smart home projects refers to installation of connected devices, smart thermostats, etc.; aging-in-place projects refers to removing trip hazards, improving accessibility, etc.; energy-efficiency projects refers to upgrades to heating, insulation, etc.; green projects refers to installation of sustainably sourced/recycled materials, alternative energy systems, etc.; and health-related projects refers to improving air quality, removing lead/asbestos/mold, etc.

Page 22: Q2 2017 - st.hzcdn.comst.hzcdn.com/static/econ/HouzzRenovationBarometer2017Q2.pdf · third quarter of 2017, home renovation and design firms are the most bullish, with high quarter-over-quarter

© 2017 Houzz Inc. 22

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.

Design, Renovation & Building Products for the Home Remodeling Services & Supplies Outside the Home Architects & Building Designers Appliances Building Supplies Backyard Courts

Design-Build Firms Bedding & Bath Cabinets & Cabinetry Decks, Patios & Outdoor Enclosures

General Contractors Carpet & Flooring Carpenters Driveways & Paving

Home Builders Fireplaces Closet Designers & Professional Organizers Fencing & Gates

Interior Designers & Decorators Furniture & Accessories Kitchen & Bath Fixtures Garden & Landscape Supplies

Kitchen & Bath Designers Lighting Paint & Wall Coverings Lawn & Sprinklers

Kitchen & Bath Remodelers Furniture Refinishing & Upholstery Rubbish Removal Outdoor Lighting & Audio Visual Systems

Landscape Architects & Landscape Designers Window Treatments Specialty Contractors Outdoor Play Systems

Landscape Contractors     Pools & Spas

Stone, Pavers & Concrete     Tree Services

Tile, Stone & Countertops      

Windows, Doors, Roofing & Siding Other Contractors & Services Home Service Contractors Doors Artists & Artisans Electrical Contractors

Garage Doors Home Media Design & Installation Environmental Services & Restoration

Roofing & Gutters Home Stagers HVAC Contractors

Siding & Exterior Contractors Ironwork Plumbing Contractors

Windows Kids & Nursery Septic Tanks & Systems

  Media & Bloggers Solar Energy Contractors

  Photographers  

  Real Estate Agents  

  Schools & Organizations  

  Staircases & Railings  

  Wine Cellars  

Links to Pros on Houzz

U.S. Houzz Renovation Barometer | July 2017