PALO ALTO, CA — Professionals across the nation’s residential design and construction sectors are reporting slower business activity in the third quarter of 2022, although they differ in their expectations for the balance of the year.
That’s the key finding of the Q4 2022 “Houzz Renovation Barometer,” a quarterly gauge that tracks residential renovation market expectations, project backlogs and recent activity in the U.S. construction, architectural and design services sectors. The latest barometer, fielded from Sept. 27 through Oct. 5, was based on an online survey sent to a national panel of some 900 businesses with an online profile on Houzz.
“As economic conditions are not showing signs of easing, businesses in the construction and design services sectors are navigating with caution,” said Marine Sargsyan, staff economist for Houzz, the Palo Alto, CA-based online platform for home remodeling and design.
“Professionals across industry sectors report slower business activity in Q3 2022 compared with Q2, citing increased costs of labor, products and materials, shortages across all aspects of the business and customers’ concerns about costs,” Sargsyan said.
A majority of surveyed businesses in the architectural and design services sector anticipate continued growth in Q4, while a majority of those in the construction sector anticipate slowed Q4 activity, Sargsyan noted, adding that project backlogs remain above pre-pandemic levels and vary across all regional divisions among businesses in the construction, architecture and design services sectors.