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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.