Houzz Inc., the home improvement and design platform, today released the State of the Houzz Industry in the United States for 2022.* The report provides a 2022 outlook and a 2021 performance review for home improvement and design companies based on data from more than 2,800 professionals in the Houzz community.
Businesses across all industry sectors have a confident outlook for 2022, with more than two-thirds expecting it to be a good or very good year, and that demand for their services will continue to grow. This follows strong results in 2021 with revenue growth at its highest level in four years across the sector, beating expectations for the year.
“After a busy year for the home improvement and design industry, Houzz’s State of the Industry results show professionals are optimistic that momentum will continue through 2022,” said Marine Sargsyan, senior economist at Houzz. “Positive outlook prevails across all industry groups, from architects and designers to builders and landscapers, despite headwinds in the form of labor and product availability and price volatility. Accumulated housing equity and other industry fundamentals continue to drive demand for improvements to the aging housing stock and upgrades that will allow homeowners to stay in their homes until retirement.
State of the industry in the United States in 2022: key results
- Confidence in 2022: The majority of home construction and design companies on Houzz predict 2022 will be a good or very good year (71-77%). For the first time since 2018, architects have the most positive outlook among the seven sectors surveyed, with almost four in five expecting a good or very good year (77%). This is followed closely by general contractors (73%), design-build companies (73%) and companies specializing in construction and renovation (71%).
- Revenue growth exceeded expectations in 2021: In 2021, companies saw their strongest year-over-year revenue growth in the past four years (9-12%), with five out of seven groups seeing double-digit revenue growth. Three-quarters of companies across all industries said revenue growth was at or above their initial expectations for 2021 (71-77%). Companies across all industry groups forecast continued growth in 2022 of 5-9%.
- Expected increase in demand: More companies in all seven industry groups expect demand for their services to increase in 2022 (41-54%) rather than decrease (6-11%). Interior designers are the most confident that demand for their services will improve (54%).
- Recruitment is on the rise: More home improvement and design companies (18-34%) hired employees in 2021 than in 2020 (9-24%). Design-build companies were the most likely to hire in 2021 (34%), followed by general contractors, builders and renovators (28%) and landscaping and outdoor companies (27%). Hiring should continue in all industrial groups in 2022 (18 to 40%).
- Labor shortages impact costs: Businesses across all industry groups expect labor availability to deteriorate in 2022 (by 41-55%), affecting labor costs. In fact, companies across all seven industry groups also expect labor costs to rise in 2022 (by 49% to 64%). Construction companies are particularly affected. The percentages of general contractors, construction and renovation specialists and design-build companies who expect a deterioration in the availability of labor in 2022 have respectively increased by 11, 11 and 10 points compared to expectations a year ago.
- Price volatility and availability of products and materials are key challenges: All industry groups cited product and material price volatility as one of their top challenges. Availability of products and materials is one of the main challenges for six of the seven industrial groups. General contractors, design-build firms and construction and renovation specialists cite price volatility (47-55%) and availability of products and materials (37-40%) as the top challenges they face. were faced in 2021, followed unsurprisingly by the increase in business implementation costs (28 to 35%). More than half of companies in the seven industry groups expect an increase in product and material costs (53-72%).
Houzz’s full report on the state of the industry in the United States in 2022 is available here.
There are over 2.7 million active home improvement and design professionals on Houzz, including architects, interior designers, home builders, and design and construction companies.
* The Houzz State of the Industry in the United States was conducted among home improvement businesses in the Houzz community in the United States that offer services primarily related to home renovation and/or design. Companies have been grouped into seven industry sectors, including architects, interior designers, general contractors and renovators, design-build companies, construction and renovation companies, companies specializing in landscaping and exterior and companies specializing in decoration. The study was performed from December 30, 2021 to January 26, 2022. N=2,805.
Houzz is the leading home improvement and home design platform, giving people everything they need to improve their home from start to finish. On Houzz, people can find design inspiration, find and hire home professionals, and shop for products to complete their projects. For home professionals, Houzz Pro (houzz.com/pro) provides an all-in-one software solution that enables industry professionals to stand out, win clients, and manage their projects efficiently and effectively. profitable. The Houzz community is made up of millions of homeowners, interior design enthusiasts, and home improvement professionals around the world. Houzz is available on the web and as a premium mobile app. Based in Palo Alto, California, Houzz also has international offices in London, Berlin, Sydney, Moscow, Tel Aviv, and Tokyo. Houzz is a registered trademark of Houzz Inc. worldwide. For more information, visit houzz.com.
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