Houzz Q1 2025 Renovation Barometer Shows Optimism Among Remodeling and Design Businesses
Furniture World News Desk on
1/28/2025
Houzz Inc., a platform for home remodeling and design, has released its Q1 2025 Houzz U.S. Renovation Barometer,
revealing optimism among construction and design professionals for the year ahead. Improved business activity in
Q4 2024 and recent federal interest rate cuts have bolstered expectations for increased activity in Q1 2025.
“Strong Q4 performance and recent federal interest rate cuts have bolstered confidence among industry
professionals as we enter the new year,” said Marine Sargsyan, Houzz staff economist. “With this
solid foundation, construction firms are expressing the most positive sentiment we’ve seen for the sector
in two and a half years. Confidence levels also remain high among architects and interior designers as new
committed projects continue to reinforce demand expectations, though optimism among this sector has softened
slightly.”
Construction Sector Insights
- The Expected Business Activity Indicator for construction professionals rose 3 points to 65
in Q1 2025, the highest level since Q3 2022. This increase reflects a 10-point rise in project inquiries
(69), though new committed projects decreased slightly (down 2 points to 62).
- The Project Backlog Indicator for Q1 2025 is 5.8 weeks, a 0.9-week decrease from the
previous year. Build-only remodelers report an average backlog of 5.0 weeks (down 1.4 weeks), while
design-build remodelers report 6.7 weeks (down 0.4 weeks).
- The Recent Business Activity Indicator rose 7 points to 54 in Q4 2024, driven by a 14-point
increase in project inquiries (60). New committed projects remained stable at 48. Build-only remodelers and
design-build remodelers reported similar increases in activity, reaching indicators of 53 and 55,
respectively.
Architectural and Design Services Sector Insights
- The Expected Business Activity Indicator for this sector declined by 3 points to 68 in Q1
2025. Expectations for project inquiries dropped by 7 points (66), while new committed projects remained
steady at 69. Architects saw a 12-point dip in expectations (65), while interior designers reported an
11-point increase (72).
- The Project Backlog Indicator rose to 7.3 weeks in Q1 2025, up 2.1 weeks from a year ago.
Architect backlogs averaged 8.8 weeks (up 2.7 weeks), while interior designers reported a 1-week increase to
4.6 weeks.
- The Recent Business Activity Indicator rose 4 points to 58 in Q4 2024, driven by increases
in both project inquiries (56) and new committed projects (59). Architects reported a 1-point increase (61),
and interior designers saw a 10-point increase to 53.
About the Houzz U.S. Renovation Barometer
The Houzz U.S. Renovation Barometer tracks quarterly changes in residential renovation industry performance and
expectations. Scores are calculated on a scale from 0 to 100, with values above 50 indicating more firms
reporting increases than declines. The Q1 2025 Barometer surveyed 1,139 home improvement businesses on Houzz
from December 16, 2024, to January 11, 2025.
Houzz supports more than 3 million home remodeling and design professionals, including architects, interior
designers, general contractors, and design-build firms. Houzz Pro offers tools for project management, design,
and client relationship management. For more information, visit houzz.com/research.
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.