More than half of residential renovation and design companies have a positive outlook for business in 2019, according to the 2019 Houzz U.S. State of the Industry report. However, the number of companies citing a positive outlook declined from 2018’s survey.
“Based on qualitative feedback, the recent deceleration in growth of construction services is likely a function of capacity constraints due to labor shortage, rather than a contracting demand,” Houzz Economist Nino Sitchinava said in a statement. “That said, it is clear that the remodeler's mood with respect to the economy is quickly changing and clouding their business outlook.”
Confidence in the national economy also dropped, with most respondents anticipating a decline in the economy in 2019 than an improved economy.
More than one-third of construction-related industries plan to hire in 2019, according to the survey, but also anticipate challenges for finding labor.
Regarding 2018 revenue, more than half of companies reported that revenues met or exceeded their expectations. However, a majority of the construction sector reported widespread challenges from the rising costs of doing business.
