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Despite Q3 slowdown, remodeling and design professionals anticipate Q4 rebound, Houzz Survey finds

Houzz Inc., the leading platform for home remodeling and design, empowering industry professionals and their clients with all-in-one project management and design software, today released the Q4 2024 Houzz U.S. Renovation Barometer. The Barometer found decreases in Q3 business activity indicators compared with Q2 among home remodeling and design professionals. Despite this overall decline, business performance was better among architectural and design businesses, for which the indicator remains above the 50-point line. Businesses in the construction sector, on the other hand, reported a decline in business activity compared with Q2, dipping below the 50-point line. Businesses across all sectors remain optimistic about activity in the coming quarter. 

“Business activity slowed in Q3, especially in the construction sector, with fewer project inquiries and commitments compared with Q2,” said Marine Sargsyan, Houzz staff economist. “However, the outlook for Q4 is more positive, especially among architectural and design firms, driven by anticipated economic growth, declining interest rates and larger project budgets. Those anticipating gains cite these favorable conditions, while others remain cautious due to economic uncertainty, current interest rates and tighter budgets. The broader political environment, including uncertainty around upcoming elections, also adds to the industry’s caution.”

Q4 2024 Construction Sector Barometer

  • The Expected Business Activity Indicator related to project inquiries and new committed projects increased 10 points to 62 for Q4 (from 52 in Q3) for construction pros. Compared with Q3 2024, Q4 expectations for project inquiries increased 7 points to 59 and new committed projects increased 12 points to 64. The index is above 50 points suggesting businesses expect Q4 performance to be better than Q3. 
  • The Project Backlog Indicator is 10.5 weeks in the beginning of Q4, which is 0.9 weeks shorter than a year ago. Build-only remodelers report a substantial decrease of 2.3 weeks to 8.3 weeks, while design-build remodelers report a 0.6 week increase in wait times at 12.8 weeks.
  • The Recent Business Activity Indicator related to project inquiries and new committed projects decreased to 47 in Q3 2024, down 5 points from Q2, indicating slower business activity in Q3 compared with Q2. This is driven by a 6-point decrease in project inquiries to 46 in Q3, relative to the previous quarter, and a 4-point decrease in new committed projects to 48. Among the two reporting groups, build-only remodelers reported a larger dip in recent business activity (from 53 in Q2 to 46 in Q3), while design-build remodelers reported a 3-point decline (from 51 in Q2 to 48 in Q3).

Q4 2024 Architectural and Design Services Sector Barometer

  • The Expected Business Activity Indicator related to project inquiries and new committed projects increased to 71 in Q4 (up 11 points from Q3) for architecture and design pros. This is driven by a 13-point increase in expectations for project inquiries and a 9-point increase in expectations for committed projects (73 and 69 points, respectively). Both architects and interior designers report an increase in expectations for Q4, up 17 points for architects (60 in Q3 and 77 in Q4) and 1 point for interior designers (60 in Q3 to 61 in Q4).
  • The Project Backlog Indicator is 6.3 weeks in the beginning of Q4. Backlogs are up by 0.2 weeks compared with last year (6.1 weeks). This slight year-over-year increase is driven by architects, who report 7.8 week wait time, up 0.4 weeks from last year. Interior designers reported a 0.2-week decrease in wait times (3.9 weeks in Q4 2024) compared with last year (4.1 weeks in Q4 2023).
  • The Recent Business Activity Indicator related to project inquiries and new committed projects decreased to 54 in Q3 (versus 60 in Q2). This decrease is driven  by a dip in project inquiries (down 8 points from Q2 to 52 in Q3) and new committed projects (down 5 points from Q2 to 55 in Q3). While the business activity indicator remained at 60 for the architects, interior designers reported a significant decline in the business performance. The index dipped 17 points, going below the 50-point line. 

The quarterly Houzz U.S. Renovation Barometer provides timely insights into the residential renovation industry, including expectations, project backlogs and recent activity among businesses in the U.S. construction and architectural and design services sectors. Scores for each component are computed as a seasonally adjusted diffusion indices on a scale of 0 to 100, with index values over 50 indicating that a greater proportion of firms reported quarter-over-quarter increases than those reporting decreases. Detailed methodology and underlying quarterly indices for the construction sector and the architectural and design services sector, and other information on market conditions, can be found on houzz.com/research. The Q4 2024 Barometer was fielded September 26 through October 9, 2024, and garnered responses from over 1,000 home improvement firms on Houzz. n=1,029.

The Houzz community includes more than 3 million home remodeling and design professionals including architectsinterior designersgeneral contractors and design-build firmsHouzz Pro provides professionals and their clients with all-in-one project management and design software, including CRMestimatestakeoffs and more. 


About Houzz
Houzz, the leading platform for home building, remodeling and design, empowers industry professionals and homeowners with the tools they need to make every project a success. The company’s cloud-based, AI-powered project management and design software, Houzz Pro (houzz.com/pro), helps pros win projects, collaborate with clients and teams, and run their businesses efficiently and profitably. Houzz Pro also provides their clients with 24/7 access to project information, 3D visualizations and financial tools. Using Houzz, people can find ideas and inspiration, hire professionals and buy products. The Houzz platform is used by more than 3 million construction and design industry professionals and over 70 million homeowners and home design enthusiasts around the world. Houzz and Houzz Pro are available on the web and as top-rated mobile apps. For more information, visit houzz.com.

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