PALO ALTO, Calif. — Construction companies tempered their positive outlook for expected business activity in the second quarter from last quarter’s peak, according to the just-released Houzz Second Quarter 2022 Renovation Barometer.
The Barometer, based on a quarterly survey only of companies with an online profile on Houzz, tracks home improvement market expectations, project delays and recent activity by U.S. construction and industrial companies. architectural and design services.
While architecture and design professionals remain confident about their business prospects, this has eased slightly, with expectations lowering somewhat for project inquiries and new projects committed. Order books reached three months for construction professionals and nearly two months for architecture and design professionals.
“While business activity and confidence in demand for construction and design services was the strongest we’ve seen in the past four quarters, industry professionals are cautious about expected performance in the second quarter.” , said Marine Sargsyan, economist at Houzz. “The pros anticipate some impact on project requests due to inflation, supply chain delays and rising material costs, such as wood, aluminum and even gasoline. However, long backlogs persist in the second quarter, signaling continued home renovation and design activity.
- In the construction industry, build-only and design-build professionals are aligned on anticipated business performance. Build-only renovators report stronger activity compared to the fourth quarter of 2021, while design-build companies saw a slight decline in activity in the first quarter of 2022 compared to the previous quarter.
- Interior designers expressed optimism for business in the second quarter, reporting higher expectations than last quarter for new projects committed. Architects tempered their outlook, anticipating a drop in project requests and new projects being committed. Both groups report slower business activity in the first quarter of 2022 compared to the previous quarter.
- Backlogs continue to grow across the industry, with the time before professionals can begin work on a new medium-sized project lengthening further across the country. In fact, wait times are the longest from the start of any year since 2018. Backlogs vary widely by geography, but are longer in Q2 2022 than they were in Q2 2021 in all nine census divisions in the United States.
The 2022 Q2 Barometer was conducted from March 27 to April 7 and garnered responses from over 1,000 home improvement companies on Houzz.