2024 U . S . HOUZZ STATE OF THE INDUSTRY REPORT
2024 U . S . Houzz State of the Industry
Home care pros forecast growth in ‘ 24
Houzz Inc ., a platform for home care and remodeling , released the 2024 U . S . State of the Industry . The report provides an outlook for 2024 and a review of 2023 performance for residential renovation and design businesses — including landscape and outdoor — based on data reported by more than 2,150 professionals in the Houzz community .
Companies across industry sectors * expect stronger business performance in 2024 than at the same time last year , with more than 3 in 5 anticipating 2024 will be good or very good . Pros forecast revenue growth along with improved demand for their services , despite rising costs of labor , products and materials . This follows the drop in revenue many experienced in 2023 .
“ Home industry professionals have greater optimism heading into 2024 ,” said Marine Sargsyan , Houzz staff economist . “ They are expecting to turn the tide following a challenging year , where economic conditions such as inflation and rising costs of labor and materials resulted in fewer and smaller-scope projects .
“ With positive signs that inflation is easing somewhat , and interest rates are stabilizing , they anticipate an increase in the demand for their services in 2024 ,” Sargsyan added . “ Many pros adopted new processes and became more selective with the type of projects they ’ ll take on , making their businesses more resilient .”
In response to the challenges they faced last year , firms implemented a variety of strategies including bringing in larger-budget projects , adjusting pricing structures and offering new products and services .
The following findings from the report highlight the landscape and outdoor sector :
High expectations for 2024
Expectations for positive business performance in 2024 are higher across all industry groups compared with expectations for 2023 . Depending on industry segment , 61 % to 71 % of firms predict a good or very good performance in 2024 versus 50 % to 56 % in 2023 .
Landscaping and outdoor firms reporting their overall business outlook for 2024 : Very Good — 14 % Good — 50 % Neutral — 24 % Poor — 7 % Very Poor — 5 %
Increased demand expected
More than half of businesses across the industry groups anticipate a higher demand for their services in 2024 .
Landscape and outdoor firms expectations for 2024 : Demand for services : 54 % improve ; 22 % worsen . Local economy : 25 % improve ; 26 % worsen . National economy : 26 % improve ; 35 % worsen .
28 OPE + March 2024 www . OPE-Plus . com