Home Renovation Business Growth In 2022
Houzz, a leading platform for home renovation and design, has released the 2022 Houzz UK State of the Industry report. […]
Houzz, a leading platform for home renovation and design, has released the 2022 Houzz UK State of the Industry report.
The report provides an outlook on 2022 and review of 2021 performance for residential renovation and design businesses based on data reported by industry professionals in the Houzz community. Businesses have a confident outlook for 2022, with more than three-quarters anticipating revenue growth (76 percent) and two-thirds expecting profits to increase (66 percent). This follows strong 2021 results with more companies reporting revenue growth, as compared to the previous four years, exceeding expectations for the year.
“Following a successful year for the home renovation and design industry, the findings from the Houzz State of the Industry report show that professionals are bullish that momentum will continue throughout 2022,” says Marine Sargsyan, Houzz senior economist. “The positive outlook is prevalent across industry groups from interior designers to builders, despite global challenges and increased costs of doing business.”
Design and build firms are most optimistic about 2022: Design and build firms are the most optimistic about revenue growth in 2022 (88 percent), followed by interior designers and architects (80 and 76 percent, respectively). Companies across all industry sectors plan to grow revenue by bringing in larger budget projects (60 percent).
Revenue growth surpassed expectations in 2021: In 2021, a larger share of businesses reported year-over-year revenue growth than in the last four years (69 percent). More than two-thirds of companies reported that revenue growth was at or above their initial expectations for the year (69 percent). Nearly three quarters of both design and build firms and architects reported increases in gross revenues in 2021 (72 percent), followed by interior designers (70 percent).
Hiring is on the rise: More than a quarter of businesses increased headcount in 2021 (29 percent), compared with only 17 percent of businesses who added employees in 2020. Design and build firms were the most likely to hire last year (35 percent), compared with architects and interior designers (29 and 26 percent, respectively). Hiring is expected to continue among nearly two in five of businesses in 2022 to support revenue growth (38 percent).
Increases in the cost of doing business: More than three-quarters of businesses reported an increase in the cost of doing business in 2021 (77 percent). Design and build firms were the most impacted by rising costs (94 percent), followed by interior designers and architects (70 and 65 percent, respectively). Price volatility of products and materials was one of the top challenges reported by one in five businesses (22 percent).
The complete 2022 Houzz UK State of the Industry report can be found here.
There are more than 2.7 million active home renovation and design professionals on Houzz, including architects, interior designers, home builders and design and build firms.
Source: Houzz UK