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Houzz Study Reveals Moderate Outlook For Home Renovation Professionals

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Houzz Inc., the leading platform for home renovation and design, including the all-in-one software solution for industry professionals, today released the 2023 Houzz UK State of the Industry Report.*

The report provides an outlook on 2023 and a review of 2022 performance for residential renovation and design businesses, based on data reported by industry professionals in the Houzz community. Companies across the industry have a tempered perspective, with 40% anticipating a good or very good year and 42% expressing a neutral outlook for 2023. While the sentiment is less widespread than last year, more businesses expect increases in revenues and profits for 2023 than those expecting decreases (50% and 44%, respectively, versus 21% and 30%, respectively). 

“Professionals in the home renovation and design industry have a moderate outlook about business activity in 2023, despite concerns around current economic conditions. Though less prevalent than last year, more businesses anticipate revenue growth,” says Marine Sargsyan, Houzz staff economist. “The 2023 Houzz State of the Industry reveals that professionals are willing to implement a diverse combination of marketing, financial and customer-centric strategies to achieve their business targets amidst high overhead and materials costs.”

2023 UK State of the Industry: Major Findings

  • A forecast for 2023: Two in five residential companies expect this will be a good or very good year (40%), and 42% express a neutral outlook. Design and build firms are the most optimistic, with 62% anticipating a good or very good year, followed by interior designers (48%). 

  • Expectations for revenue: More businesses among the industry groups surveyed expect increases in revenue in 2023 (50%) than those expecting decreases (21%), albeit the sentiment is less widespread than last year. 

  • Increased demand anticipated: In 2023, a larger share of businesses believe that demand for their services will improve (52%), rather than decrease (31%). Design and build firms, in line with their overall outlook for business in 2023, feel confident about demand this year, with almost three-quarters anticipating an increase (73%).

  • Costs of doing business rise: More firms across all of the industry groups cited an increase in the cost of doing business (82%) versus those citing a decrease (4%), with the share of businesses reporting an increase rising by five percentage points this year (82% compared with 77% in 2021). 

  • Hiring slows: Many residential renovation and design companies continued to hire employees in 2022 (22%), although at a slower rate than in 2021 (29%). Design and build firms continue to lead the industry in hiring at 46%, followed at a distance by interior designers and architects (20%, each).

  • Product availability improves: The availability of products and materials was less of a concern in 2022, compared with 2021. The proportion of firms citing it as one of their top three business challenges fell eight percent (12% compared with 20% in 2021). 

  • Pros implement diverse business strategies: More than two-thirds of businesses target larger budget projects (67%) and more than half increased marketing and sales efforts (55%) to achieve expected growth in 2023. Businesses also plan to improve customer experience and employee productivity (45% and 33%, respectively). 

*The Houzz UK State of the Industry was conducted among home renovation firms in the Houzz UK community that offer services related primarily to residential renovation and/or design. The study was fielded from December 2022 to January 2023. N=136.

Download the report here

Source : Houzz UK

Image : shutterstock.com / 378589792 

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29 March 2023

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