In its annual State of the Industry Report, Houzz reviewed data and looked at industry performance from 2021 and provided an outlook for 2022. The report found that companies across the home improvement industry are confident in what 2022 will bring, with more than two-thirds anticipating this year will be a good or very good year and anticipate demand for their services and products will continue to increase.
The report found that 73 percent of general contractors, 73 percent of design-build companies and 71 percent of specialty building and renovation firms believe 2022 will be a good or very good year. In 2021, businesses reported their highest year-over-year revenue growth in the last four years, with an average growth of 9 to 12 percent. Businesses expect that growth to continue in 2022, forecasting growth of 5 to 9 percent in 2022. Other findings included hiring is up across the industry, but companies expect labor availability to worsen in 2022.
“Following a busy year for the home renovation and design industry, the findings from the Houzz State of the Industry show that professionals are bullish that momentum will continue through 2022,” says Marine Sargsyan, Houzz senior economist. “The positive outlook is prevalent across industry groups from architects and designers to builders and landscapers, despite headwinds in the form of labor and product availability and price volatility. Accumulated home equity and other industry fundamentals continue to drive demand for improvements to aging housing stock and upgrades that will enable homeowners to stay in their homes long into retirement years.”