PALO ALTO, CA — Labor shortages are slightly less severe than they were a year ago, but “continue to be a headwind” for the home renovation and design industry, according to the Q2 2023 Houzz U.S. Renovation Barometer, a quarterly gauge that tracks residential renovation market expectations, project backlogs and recent activity among businesses in the nation’s construction, architectural and design services sectors.
The Palo Alto, CA-based Houzz reported this week that nearly four-fifths (79%) of the more than 1,500 residential construction and design businesses surveyed in March reported moderate-to-severe shortages in this year’s second quarter, down from 91% in the second quarter of 2022.
The finding may be a reflection, however, of recent declines in business activity levels and newly committed projects, Houzz cautioned.
Carpenters are in the shortest supply, followed by electricians and cabinet makers (as cited by 42%, 28% and 26% of industry pros, respectively), Houzz said. However, at least 30% fewer renovation and design pros are reporting shortages of these subcontractors as compared with the previous year, the company noted.
Among other key findings of Houzz’s survey were the following:
- The most significant impacts of the labor shortages include increased project costs (81%), subcontractor compensation (72%), and project length (71%).
- Home renovation pros are encouraging the next generation of tradespeople to enter the industry and relieve labor constraints by offering on-the-job training for recent hires (54%) and leveraging social media to spread awareness of job opportunities (42%).
- Beyond skilled labor, construction and design professionals are also facing challenges in securing the items they need to complete their projects. Nearly half of businesses not only report moderate to severe shortages of products and materials (49%), but also shipping delays once purchased (63%).Material challenges are greatest with copper or brass (47%), followed by lumber or plywood (46%), drywall (40%) and aluminum (40%). Delays in the arrival of cabinetry (96%), indoor furniture (95%), windows (94%), outdoor and indoor doors (94% and 93%, respectively) and lighting fixtures (92%), “are top of mind for pros as they plan their project timelines,” Houzz said.