PALO ALTO, Calif. — Houzz Inc., a global home improvement and design platform, reports optimism for 2022 after strong results in 2021 with revenue growth at a four-year industry high , exceeding expectations for the year.
In Houzz’s 2022 State of the Industry Report released today, Houzz provides a 2022 outlook and 2021 performance review for home improvement and design companies based on data reported by more of 2,800 professionals in the Houzz community.
Businesses across all industry sectors have a confident outlook for 2022, with more than two-thirds predicting it will be a good or very good year and that demand for their services will continue to rise.
“After a busy year for the home improvement and design industry, the Houzz State of the Industry findings show that professionals are confident the 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.”
Confidence in 2022: The majority of residential construction and design companies on Houzz expect 2022 to be a good or very good year (ranging from 71% of construction and renovation companies to 77% for architects). For the first time since 2018, architects have the most positive outlook among the seven sectors surveyed.
Revenue growth exceeded expectations in 2021: In 2021, the companies recorded their strongest year-over-year revenue growth in the past four years, with groups ranging from an estimated revenue growth of 9% to 12%. Companies across all industry groups forecast continued growth in 2022 of 5% to 9%.
Expected increase in demand: More businesses across all seven industry groups (ranging from 41% to 54%) believe demand for their services will increase in 2022, with interior designers most confident that demand for their services will improve (54% ).
Recruitment is on the rise: 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 is expected to continue across all industry groups in 2022.
Labor shortages impact costs: Businesses across all industry groups expect labor availability to deteriorate in 2022, which affects the cost of labor. In fact, companies across all seven industry groups also expect labor costs to rise in 2022, with construction companies particularly affected.
Price volatility and availability of products and materials are the main challenges: All industry groups cited product and material price volatility as one of their top challenges. Availability of products and materials is a top challenge for six of the seven industry groups, and more than half of companies across the seven industry groups expect product and material costs to increase (from 53% to 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 US State of the Industry study was conducted among more than 2,800 home improvement companies in the Houzz US community that provide 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 conducted from December 30, 2021 to January 26.