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Aug 8, 2023

Home improvement professionals optimistic for Q3, construction backlogs at record high

Houzz Inc. has released its Q3 2023 Houzz US Renovation Barometer, tracking market expectations in the US construction and architectural sectors. Despite previous quarters of slowed activity and homeowner project postponements, professionals anticipate growth in Q3 2023.

 

Construction backlogs have reached a record high of 13 weeks, up 2.5 weeks from last year. Businesses in the New England region face wait times of 21.8 weeks for new midsize projects. In the architectural and design services sector, backlogs are at 6.4 weeks.

 

In the construction industry, both build-only and design-build professionals expect favorable business performance. Build-only remodelers anticipate increased activity in Q3, while design-build firms maintain steady expectations. Project inquiries and new committed projects are on the rise. For the architectural and design services sector, more firms expect business growth in Q3 than declines. However, expectations have declined compared to the previous quarter, with decreases in project inquiries and new projects.

 

“Pent-up demand and macroeconomic conditions, such as aging housing stock and high mortgage rates, which continue to drive home improvement activity, are instilling a sense of optimism among builders, remodelers, architects and interior designers as they look ahead to the second half of the year,” said Marine Sargsyan, Houzz staff economist. “We continue to monitor the industry to identify whether improvements to inflation and other economic indicators create more stable pricing for businesses and an environment in which homeowners proceed with their full project scope. That said, ongoing labor shortages and product and material delays will continue.”

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