Houzz Q2 Renovation Barometer Reveals Growth & Optimism

Palo Alto, CA, July 23, 2015—Houzz has released the Q2 2015 Houzz Renovation Barometer, which tracks confidence in the home renovation market among industry professionals.

According to the Q2 2015 Barometer, more than two-thirds of home renovation firms reported 2015 year-to-date revenues and profits to be at or above pre-recession levels, with one in five firms or more reporting revenues and profits to be significantly higher.

The Q2 2015 Barometer reflects steady optimism in market growth among professionals, with high index scores of 69 or higher in market confidence across all company types, in line with Q1 readings (71 or higher).

Specialty building/renovation and specialty landscaping/outdoor firms report somewhat higher confidence relative to the start of the year (5% to 8% increase), while architecture firms report a slightly weaker outlook (4% decrease).

Market conditions are expected to remain strong into Q3, with scores of 69 or higher for all sectors.

Additional findings from the Q2 2015 Houzz Renovation Barometer follow.

Year-Over-Year Gains Continue: Confidence in market growth continued in Q2 2015, relative to the same period in 2014. The Barometer posted high year-over-year readings of 75 to 83, a notch higher than the year-over-year scores for the previous quarter (74 to 79). Landscape/outdoor specialty firms are exceptionally positive about year-over-year gains (83 versus 77 in Q1).

Widespread Quarter-Over-Quarter New Business Gains: All industry groups reported strong quarter-over-quarter improvement in new business activity in Q2, as indicated by high index scores for new inquiries (72 or higher), number of new projects (72 or higher) and new project size (64 or higher). Professionals are similarly optimistic about the continued influx of new business in Q3 (66 or higher), pointing to the continued strengthening of the overall market.

Confidence Varies by Industry Sector and Region: Outdoor, renovation specialty firms and general contractors in the Northeast are reporting an acceleration of new business activity following a harsh winter, with quarter over quarter index scores of 91, 78 and 77 respectively (a 34%, 23% and 10% gain over Q1 scores). When it comes to year-over-year improvements, Western architects are especially confident (80 versus Southern architects at 69), as are Southern specialty firms (82 versus Midwest specialty firms at 73).