Home renovation and design professionals lowered their expectations for business activity in the second quarter of 2022 compared with the first quarter, a Houzz study found.
Houzz’s Q2 2022 Construction Sector Barometer’s Expected Business Activity Indicator fell from a level of 79 in the first quarter of 2022 to a level of 67. Expectations for product inquiries plummeted from 80 to 65.
“While business activity and the confidence in demand for construction and design services has been the strongest we’ve seen in the last four quarters, industry professionals are cautious about expected Q2 performance,” Houzz Staff Economist Marine Sargsyan said in a statement. “Pros anticipate some impact on project inquiries due to inflation, supply chain delays and rising costs for materials, such as lumber, aluminum, and even gasoline. Lengthy backlogs persist into Q2 however, signaling continued home renovation and design activity.”
The survey’s Project Backlog indicator reached 12 weeks in the second quarter of 2022, the highest backlog reported since 2017. Compared with the second quarter of 2021, backlogs are 2.7 weeks longer, according to Houzz.
The full Houzz report can be found here.
