PALO ALTO, Calif. — Houzz Inc., a home remodeling and design platform, has released its Q4 2020 Houzz Renovation Barometer, showing that businesses have recovered to pre-pandemic activity levels with the strongest activity in 2 years.
The quarterly barometer tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector and the architectural and design services sector in the U.S.
“The results from the Houzz Q4 Barometer show that the home remodeling and design industry is truly resilient,” said Marine Sargsyan, Houzz senior economist. “Home professionals have a positive outlook through the end of the year … continuing the momentum from the recent quarter.”
For the Construction sector, the barometer shows project inquiries and new committed projects are up to 75 in the third quarter, up from 49 in Q2.
(Scores for each component are computed as a seasonally adjusted diffusion indices on a scale of 0 to 100, with index values over 50 indicating that a greater proportion of firms reported quarter-over-quarter increases than those reporting decreases.)
The project backlog has also increased to 7.2 weeks for the fourth quarter, up 2 weeks from last year’s levels.
For the Architectural and Design Services sector, the barometer shows project inquiries and new committed projects are up to 61 in the third quarter, up from 48 in Q2, while the project backlog is holding steady at 4.5 weeks.
Architecture and design firms, as well as construction businesses have responded to pandemic-related challenges by offering more online and video consultation tools, as well as more safety guidelines at the office and worksite.
One third of businesses in the architectural and design services sector (36%) and 26% of businesses in the construction sector also adopted online invoicing and payments.
At the start of the fourth quarter this year, 85% of firms in the architectural and design services sector and 87% of firms in the construction sector have a neutral to very good outlook for the rest of the year, compared with 73% and 82%, respectively, at the start of the third quarter.
The Q4 2020 Barometer was fielded Sept.24-Oct. 7 and garnered responses from nearly 1,700 home improvement firms on Houzz.