Why Business is Booming for Renovation Companies on Houzz
Understand why the industry is reporting higher revenues, and find out how companies plan to keep the good times coming
The 2022 Australian Houzz State of the Industry report surveyed 147 companies across architecture, interior design, home building and building design about the health of their businesses in 2021 and expectations for 2022. Respondents reported higher revenues, optimistic outlooks and planned investment in marketing as a key growth engine.
The best-performing sector was…
Interior designers and decorators.
Nearly four out of five interior designers reported increases in gross revenues in 2021 (79 percent). This was followed by building designers and home builders (67 and 63 percent, respectively).
Unsurprisingly, this led to interior designers and decorators being the most optimistic about revenue growth in 2022 (77 percent), followed by home builders and building designers (76 and 72 percent, respectively).
Interior designers and decorators.
Nearly four out of five interior designers reported increases in gross revenues in 2021 (79 percent). This was followed by building designers and home builders (67 and 63 percent, respectively).
Unsurprisingly, this led to interior designers and decorators being the most optimistic about revenue growth in 2022 (77 percent), followed by home builders and building designers (76 and 72 percent, respectively).
How companies plan to continue revenue growth in 2022
Companies across all industry sectors plan to grow revenue by increasing marketing and sales efforts and increasing prices, mark-ups and margins (52 percent, each).
By sector:
Companies across all industry sectors plan to grow revenue by increasing marketing and sales efforts and increasing prices, mark-ups and margins (52 percent, each).
By sector:
- Interior designers and decorators planned to invest in marketing/sales efforts (70 percent) and bringing in larger-budget projects (61 percent)
- Building designers intend to bring in larger-budget projects (62 percent) and increase prices/mark-ups/margins (62 percent each).
- Home builders aim to hire more staff (54 percent) and bring in larger-budget projects (54 percent) as part of their strategy.
This means that hiring is on the rise
More than one quarter of businesses surveyed increased their headcount in 2021 (28 percent), compared with only 17 percent of businesses who added employees in 2020.
Home builders were the most likely to hire in 2021 (47 percent), compared with interior designers and building designers (32 percent, each).
Hiring is expected to continue among one third of surveyed businesses in 2022 to support revenue growth (34 percent).
More than one quarter of businesses surveyed increased their headcount in 2021 (28 percent), compared with only 17 percent of businesses who added employees in 2020.
Home builders were the most likely to hire in 2021 (47 percent), compared with interior designers and building designers (32 percent, each).
Hiring is expected to continue among one third of surveyed businesses in 2022 to support revenue growth (34 percent).
And the biggest challenges ahead are…
The cost of doing business, with nearly seven in 10 businesses reporting an increase in the cost of doing business in 2021 (69 percent).
Home builders were the most impacted by rising costs (84 percent), followed by interior designers and building designers (70 and 50 percent, respectively).
Price volatility of products and materials was one of the top challenges reported by one in five businesses (22 percent).
The cost of doing business, with nearly seven in 10 businesses reporting an increase in the cost of doing business in 2021 (69 percent).
Home builders were the most impacted by rising costs (84 percent), followed by interior designers and building designers (70 and 50 percent, respectively).
Price volatility of products and materials was one of the top challenges reported by one in five businesses (22 percent).
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Your turn
Do your experiences align with these figures? Tell us in the Comments below, like this story, share it with your team and join the conversation.
More
Did you know Houzz has dedicated articles for pros? Browse the archives here
In 2021, a larger share of businesses reported year-over-year revenue growth than in the past four years (70 percent).
Two-thirds of companies surveyed reported that revenue growth was at, or above, their initial expectations for the year (66 percent).