Activity, Confidence Reported Up Among Remodeling Firms
PALO ALTO, CA — Residential construction professionals experienced their busiest quarter since at least 2015 in the first quarter of 2021, with confidence among remodeling construction and design firms running high into this year’s third quarter, according to Houzz Inc.
The Palo Alto, CA-based online platform for home remodeling and design reported positive results for its “Q3 2021 Houzz Renovation Barometer,” a quarterly gauge of residential renovation market expectations and recent activity among companies in the U.S. construction, architectural and design services sectors.
However, the heightened activity is not without challenges, according to Houzz, which reported that supply chain delays, extreme weather patterns, rising product and material costs and labor shortages “continue to create major headwinds for the industry.” Specifically, more than nine in ten construction businesses report labor shortages, including carpenters, laborers, framers, cabinet specialists and plumbers, Houzz said.
In a related development, annual gains in homeowner improvement and maintenance spending are poised to accelerate in the second half of 2021 and remain elevated through mid-year 2022, according to the Leading Indicator of Remodeling Activity (LIRA), released last month by the Remodeling Futures Program at the Joint Center for Housing Studies of Harvard University.
The LIRA projects that annual growth in home renovation and repair expenditures to owner-occupied U.S. homes will reach 8.6% by the second quarter of next year, with annual remodeling expenditures to owner-occupied homes expected to surpass $380 billion.