Dive Brief:
- Renovation and remodeling design companies on Houzz expect stronger growth in revenue and profits this year compared with 2015, according to the 2016 Houzz State of the Industry report, released Tuesday during the International Builders' Show.
- Half or more of businesses surveyed on the remodeling and design online platform were "bullish" toward 2016 prospects and predicted their revenues will grow by 10% or more this year. More than one-fifth of respondents expect growth of 15% or more.
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Despite the optimistic outlook for 2016, remodeling companies and designers reported they were still experiencing significant obstacles to stronger growth, including: managing consumer concerns and expectations; rising business costs; and staffing shortages.
Dive Insight:
"All of our Houzz industry research to-date points to an exceptional two-year run for the home renovation and design industry, leading to a healthy market in 2016," said Nino Sitchinava, principal economist at Houzz.
Houzz's reports of a strong year for remodeling coincide with other industry predictions that 2016 will bring in major profits for this sector of the building industry. Last month, experts echoed this sentiment, and one remodeler told Construction Dive, "Through all of the ups and downs, this is the first time I feel very comfortable."
The strength of the remodeling sector is especially prevalent in the luxury market, where homeowners are more financially secure and comfortable enough to make significant investments in their homes, according to experts.
Despite this sense of optimism for 2016, the issues affecting remodelers are being felt across the industry as a whole. The worker shortage, especially, has been the most significant obstacle for the recovering industry.
