People are remodeling their homes and industry professionals are more confident than they were earlier this year that this trend will continue, according to Houzz’s second quarter 2016 Renovation Barometer. And that’s not all—the outlook for the third quarter “continues to be positive for all sectors,” says the report.
The driving force behind the increased business activity is older homeowners—Gen Xers and Baby Boomers. Projects from Gen Xers have increased 46-58 percent over 2015, while Baby Boomers have upped their renovation game by 36-51 percent. Millennials lag behind but they’re still contributing, with a 21-28 percent increase in projects over last year.
So what kinds of projects are these homeowners asking for? A third or more of the firms report that more clients are buying high-end products in 2016 compared to a year ago. The firms are also seeing an increase in smart home technology installations and aging-related upgrades, along with more projects that focus on energy efficiency or that incorporate eco-friendly elements. There’s an increase in clients tackling multiple projects at one time, and firms report that kitchen and bathroom renovations increased by 46-58 percent over 2015. Nino Sitchinava, principal economist at Houzz, says “the increase in Baby Boomer and Gen Xer activity, as well as an uptick in kitchen and bath activity, is consistent with our recent insights from other studies of homeowners and are great signs of the vitality of our industry.”
Although the confidence numbers are good for architects, designers, and design-build companies—66-73, relative to an index value of 50—the numbers for those sectors have been fading year to year, with the second quarter of 2015 reporting a reading of 75-80. From the first to the second quarter of 2016, scores for architects, designers, and design-build companies dropped five to seven percent, while scores in other sectors increased or stayed the same. The Renovation Barometer concludes that quarter-over-quarter market gains aren’t equally distributed across the sectors.
The barometer is an analysis of responses to a quarterly online survey Houzz sends to a panel of architects, interior designers, general contractors/remodelers, design-build firms, and building/renovation and landscape/outdoor specialties across the United States. Read the report to learn more.
About the Author
Lisa Speckhardt is the director of communications for ASID and the editor of ASID ICON. email@example.com.