Houzz: Renovation Pros Report High Quarter-To-Quarter Confidence

Renovation professionals, including architects, interior designers, general contractors and design-build firms, reported a higher level of confidence in the market’s growth in the first quarter of 2016 than in the fourth quarter of 2015, according to the Houzz Renovation Barometer.

The confidence levels reported by each renovation business type ranged from 68–75 in the first quarter on the Houzz Barometer. A level above 50 means the professionals in that business type are experiencing more activity than they did during the prior quarter.

“While Barometer readings continue to reflect year-over-year market improvements across industry groups, these gains are somewhat less widespread than those we saw in the same period of 2015,” said Nino Sitchinava, principal economist at Houzz, in a statement. “Consistent with our projections in the Houzz State of the Industry report at the beginning of the year, we are seeing early evidence that 2016 will be a year of more moderate yet steady growth for residential renovation and design businesses.”

The report also highlighted labor shortages across renovation industry business types. Thirteen percent observed a shortage in flooring specialists in the first quarter of 2016, versus 11 percent in the third quarter of 2015.

Seventy-seven percent of businesses reported a labor shortage in general in the first quarter of 2016, a decrease compared with 79 percent in the third quarter of 2015.

Midwestern firms were 50 percent more likely to be short on labor than other regions during the first quarter of 2016.

Architects and Designers

Specifically, architects and designers reported levels in the first quarter that were 6 percent and 10 percent higher, respectively, than the previous quarter. General contractor’s confidence level was 14 percent higher and design-build firms’ confidence level was 17 percent higher than the previous quarter. Specialty firms also posted confidence level gains of 9 percent (building/renovation firms) and 26 percent (landscape/outdoor firms).

Article credited and reposted from Hardwood Floors Mag