Businesses across the construction sector have tempered their second-quarter optimism in anticipation of new tariffs and rising material costs, according to Houzz’s second-quarter U.S. Renovation Barometer.
The report found 95% of residential construction professionals anticipate a negative impact on their business in the second quarter due to market shifts.
“This tempered outlook is unsurprising, as firms continue to navigate challenges including rising material costs, cautious client spending and persistent labor shortages,” Houzz Economist Marine Sargsyan said in a statement. “In response, many firms are proactively adjusting procurement strategies and selectively stockpiling materials in preparation for anticipated tariff-driven price hikes, especially on lumber, steel and cabinetry.”
The Recent Business Activity Indicator, which tracks project inquiries and new committed projects, dropped to 42, down 12 points from the previous quarter.
New committed projects decreased 5 points at the beginning of the second quarter to 43.
The Project Backlog Indicator was 6.4 weeks at the beginning of the second quarter, 0.1 weeks shorter than a year ago.
Read the full report here.
