Home renovation professionals anticipate business growth in 2019

Houzz Inc, the world’s leading platform for home renovation and design, released the 2019 Houzz AU State of the Industry. The report provides an outlook on 2019 and a review of 2018 performance for residential renovation and design businesses, including architects, interior designers and builders, based on data reported by nearly 300 professionals in the Houzz Australia community. The study revealed that a majority of firms across the industry are optimistic about business growth in 2019, following positive 2018 results.

Nearly three-quarters of the industry anticipates that gross revenue will increase in 2019 (74 percent). In fact, more than half of businesses expect that revenue will grow by more than 10 percent (58 percent). Interior designers have the most confident view of 2019, with 84 percent of firms anticipating an increase in gross revenue, followed by home builders and building designers (73 and 47 percent, respectively). To support revenue growth, firms plan to increase marketing and sales efforts and bring in larger budget projects (60 and 46 percent, respectively).

“Residential construction and design service professionals in Australia are gearing up for another robust year,” said Nino Sitchinava, Houzz principal economist. “Positive expectations follow overall revenue growth in 2018 despite headwinds in managing consumer concerns over cost and unreasonable expectations”.

Positive expectations for the year ahead follow a successful 2018 for firms across the industry, with more than two-thirds of businesses reporting that gross revenue met or exceeded expectations (69 percent). In fact, actual gross revenue increased by 10 percent or more for nearly half of businesses (45 percent). Interior designers saw the largest increase, with nearly half of businesses reporting that gross revenues grew by 15 percent or more from the year prior (45 percent).

Revenue growth was not without its challenges, led by increased cost of doing business (overhead, wages, etc.), managing consumer concerns over cost and managing consumer expectations (30, 29 and 27 percent, respectively). That said, one-third of businesses were able to expand and hire new employees (32 percent). Home builders were the most likely to increase headcount (50 percent), followed by interior designers and building designers (24 and eight percent, respectively).

There are more than 2.3 million active home renovation and design professionals on Houzz globally, including architects, interior designers, home builders and design and construction firms.

The Houzz AU State of the Industry Study was conducted among home renovation firms in the Houzz Australia community that offer services related primarily to residential renovation and/or design. The study was fielded in December 2018 and January 2019. N=273.

Source: Houzz Inc