Houzz launched its Houzz Renovation Barometer, a quarterly index that tracks confidence in the home renovation market among industry professionals.
Landscaping professionals somewhat led the pack in the inaugural Barometer Study, with 79 percent of contractors reporting revenue increases in 2014.
Some of their other feedback from 2014 included:
- 83 percent of landscape professionals reported 2014 revenues were at or below their expectations for the year;
- 80 percent of landscaping professionals reported increases in the number of projects in 2014;
- 66 percent of landscaping professionals reported an increase in the scale of projects; and
- 63 percent of landscape professionals reportedly saw an increase in proposal-to-business conversion rates in 2014.
Heading into 2015, optimism is quite high, too, for landscape professionals, with 86 percent expecting increased revenues in 2015 to 2014 and 85 percent anticipating profit increases. In addition, 43 percent of landscape professionals plan to hire more in 2015 to supplement their growth.
Looking at the Barometer Study as a whole, it posted an index value of 74 or higher across all company types for the last three months of 2014, indicating optimism about a continued industry rebound, relative to the same period of 2013. Confidence in the industry’s recovery continues into 2015, with barometer posting an index value of 75 or higher for the first quarter.
The Barometer Study also found that the economic recovery reached very small firms—firms with fewer than five employees—in 2014. Overall revenues are improving for firms of all sizes, and many smaller interior designers, landscape professionals, builders/remodelers, specialty trade and other industry firms report aggressive rates of growth at more than 50 percent annually—roughly a third hired new employees in 2014.
“With a community of over 25 million monthly unique users, 90 percent of whom are homeowners and more than 600,000 active home professionals, Houzz is in a unique position to provide unprecedented insights into the health of the home renovation, building and decorating industry,” said Nino Sitchinava, principal economist at Houzz. “Barometer findings are consistent with other leading industry research and economic indicators of growth and confidence for the home improvement industry as baby boomers and growing families continue to invest in their homes.”
The study will continue to be conducted quarterly across a national panel of architects, builders/remodelers, interior designers, landscape architects/designers, landscape contractors, specialty trade and other related categories.
