How Business is Booming for Renovation Firms on Houzz
Revenues exceeded expectations for many design firms in 2021, according to the latest Houzz State of the Industry report
The Houzz UK 2022 State of the Industry study includes responses from 298 firms in the home renovation and design industries. Read on to find out how your fellow professionals found 2021 and what they’re expecting for the year ahead.
The other firms include specialists in the landscaping & outdoor, decorating, and building & renovation categories.
Renovation professionals are generally feeling positive about the year ahead, with 76% of all firms surveyed expecting to increase their gross revenues in 2022.
Design & build firms are the most optimistic, at 88%, while 80% of interior designers and 76% of architects predict higher revenues for the year.
The most popular planned strategy for revenue growth in 2022 is to bring in larger-budget projects, with 60% of all pros saying this will be their aim this year. Architects are relying on this strategy the most, at 68%, while 58% of interior designers intend to adopt the same plan.
Design & build companies are equally drawn towards two strategies, with 56% saying they’ll focus on both higher-budget projects and increasing marketing and sales efforts.
A greater share of businesses reported year-over-year revenue growth in 2021 than in the past four years, and the majority of firms did better than expected. Indeed, two-thirds reported that revenue growth either met or exceeded their initial expectations for the year.
72% of both architects and design & build firms told us they’d seen a rise in gross revenues in 2021, followed by 70% of interior designers.
More firms were taking on new staff last year, with 29% of those surveyed saying they’d grown their teams in 2021 compared with 17% the previous year.
At 35%, design & build firms were the most busy hiring new employees, while 29% of architects and 26% of interior designers also increased their headcount.
Businesses are expected to keep hiring in 2022, with 38% of those surveyed saying they plan to recruit in order to support revenue growth.
Business costs rose last year, with almost four in five businesses – 77% – reporting an increase in the cost of doing business in 2021. This was a particular challenge for design & build firms, with 94% saying they’d been impacted by rising costs, followed by 70% of interior designers and 65% of architects.
Client budgets were also pinched, as 34% of pros reported that customers who were overly concerned about costs were a big challenge in 2021.
Download the full study.
What were your biggest challenges in 2021 and what are your plans for the year ahead? Share your thoughts in the Comments.