The recently released Q1 2021 Houzz Renovation Barometer showed optimism among home improvement businesses, with the construction sector sentiment softening slightly due to labor and supply shortages as well as increasing material costs. The Barometer tracks residential renovation market expectations and recent business activity in the construction and architectural design services industries.
Within the construction sector, the Project Backlog Indicator rose to 7.4 weeks above the fourth quarter of 2020. The fourth quarter Recent Business Activity Indicator decreased 13 points from Q3 to 62, while the Q1 Expected Business Barometer remained high, but dropped 3 points from the previous period to 70.
Within the architectural and design sector, Project Backlog Indicator rose to 5.6 weeks in the first quarter. The Recent Business Activity Indicator increased 3 points from the third quarter to 63 in the fourth quarter, while the Expected Business Activity Indicator for Q1 jumped six points to 68.
The Houzz Renovation Barometer is an online quarterly survey sent to U.S. businesses with a Houzz profile. The fourth quarter survey garnered responses from 1,588 home improvement-related businesses between January 7 through January 25, 2021. See Houzz