Houzz, a social media platform for home remodeling and design, released its 2023 State of the Industry study that surveyed 2,090 U.S. residential renovation businesses. The study focused on a review of 2022 and outlook for 2023. Over half of the companies surveyed reported that 2022 revenue met or exceeded expected goals; however, the average revenue growth rate declined from 2021.
The cost of doing business rose for all industry segments in 2022. Still, it was most widespread within the design-build sector, with 74% of companies reporting increased prices for products and materials. Subcontractor expenses were also cited as a factor for higher business costs for general contractors and design-build firms. Product availability was a significant concern in 2021 but was only mentioned as a top concern for three business groups in 2022. Actual revenue growth was lower than the expectations for all groups in 2022.
The study showed an overall positive outlook for 2023, with all groups expecting revenue growth ranging from 0.3% to 6.1% with most expecting more demand. See Houzz
