Home Renovation Industry Remains Cautiously Optimistic About the Future
New committed projects and inquiries dropped quarter-over-quarter, but a recent report finds there is hope ahead for the rest of the year
July 18, 2024
Image: Tomasz Zajda / stock.adobe.com
The business outlook for the home renovation industry is looking up.
The home renovation industry, which includes architectural and design professionals, as well as construction pros, is experiencing modest growth in business activity. According to the Q3 2024 Renovation Barometer from home remodeling and design website Houzz, businesses in both sectors are cautiously optimistic about the remainder of the year. While the outlook for construction firms remains positive, their Expected Business Activity Indicator—which measures project inquiries and new committed projects—dropped by 6 points, from 58 in Q2 2024 to 52 in Q3 2024. However, it looks like positive changes are right around the corner, with the average backlog across the construction sector at 7.6 weeks nationally as of Q3 2024, down by 5.4 weeks from Q3 2023 when it was 13 weeks.
“Pros report moderately increased activity across the industry, which is particularly significant for the construction sector following a two-year slowdown,” Houzz staff economist Marine Sargsyan says. “Third-quarter expectations are cautiously optimistic as pros navigate the current political and economic landscape, and face challenges related to costs and availability for labor, products and materials.”
