PALO ALTO, CA — Expectations for continued home remodeling demand are being tempered as homeowners – facing inflation, interest rate hikes and other uncertainties –reportedly await signs of national economic stability, according to the latest in a series of quarterly reports by Houzz, the Palo Alto, CA-based platform for home remodeling and design.
“Following the strong residential remodeling and design activity of the past two years, it’s unsurprising that businesses are leveling their expectations as current economic conditions now impact both sides of the industry,” said Marine Sargsyan, staff economist for Houzz, which this week released its Q3 2022 Houzz Renovation Barometer.
The quarterly Houzz Barometer, based on a survey sent to a national panel of businesses with an online profile on Houzz, tracks residential renovation market expectations, project backlogs and recent activity in the construction and architectural/design services sectors. The latest Barometer was fielded from June 30 through July 11, according to Houzz.
The Q3 2022 Houzz Renovation Barometer found that the majority of businesses across both the construction and architectural and design services sectors reported more increases than decreases in recent business activity. At the same time, following record high wait times before professionals can begin work on a new midsize project, businesses reported that backlogs are decreasing across the industry, Houzz said.
“Rising interest rates and inflation have put downward pressure on homeowners’ demand for professional services in the short term, giving pros an opportunity to clear up lengthy backlogs,” Sargsyan observed. “That said, homeowners managing the demands of aging housing stock and housing market shortages will continue to drive home renovation and design activity in the long run.”