Confidence ‘Tempered’ Across Remodeling Trade, Houzz Finds
PALO ALTO, CA — Confidence was “tempered” among residential construction firms facing pandemic-related uncertainty, increased lumber prices, and labor and material shortages, according to the latest in a series of economic barometers compiled by Houzz Inc.
The Q1 2021 “Houzz Renovation Barometer,” released last month, points to positive sentiment for home renovation activity in the first quarter of the year, albeit tempered among construction businesses, according to Houzz, whose quarterly barometer tracks residential renovation market expectations, project backlogs and recent activity among businesses in new construction and the architectural and design services sector in the U.S.
“Businesses in the home remodeling industry are kicking off the year with cautious optimism,” said Marine Sargsyan, senior economist for the Palo Alto, CA-based Houzz. “Favorable interest rates and increased pandemic-related demand for remodeling have given architectural and design firms confidence for Q1 compared with the previous quarter. Yet, construction businesses have tempered their expectations slightly as they continue to face supply chain constraints, labor shortages and increasing costs for materials, such as lumber.”
Houzz Renovation Barometers are based on a quarterly online survey sent to a national panel of businesses with an online profile on Houzz. The Q1 2021 Barometer was fielded Jan. 2-25 and garnered responses from nearly 1,600 home improvement firms on Houzz, the company said.