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Houzz Inc, the world’s leading platform for home remodeling and design, today released the 2020 Houzz Canada State of the Industry.* The report provides an outlook on 2020 and review of 2019 performance for residential renovation and design businesses based on data reported by hundreds of professionals in the Houzz community. The majority of companies across industry sectors are confident about revenue growth in 2020, despite rising costs of doing business.

“The findings from this year’s Houzz State of the Industry show momentum for the home remodeling industry following 2019 revenue growth,” says Marine Sargsyan, Houzz senior economist. “Home professionals plan to support continued success in 2020 by bringing in larger budget projects and improving customer experience in order to offset business expense increases.”

2020 Canada State of the Industry: Major Findings

- Businesses maintain a positive outlook: More than three-quarters of residential renovation and design companies on Houzz predict that they will have an increase in gross revenues in 2020 (77 percent), reflecting improved expectations from a year ago (70 percent). Interior designers and decorators have the most positive outlook with more than four in five businesses anticipating an increase in gross revenue (83 percent).
- Taking action to support growth: The majority of businesses across the industry plan to bring in larger budget projects and improve customer experience to bolster revenue growth over the coming year (51 and 47 percent, respectively). Interior designers are also likely to partner with other businesses (57 percent), while half of architects will increase marketing and sales efforts (50 percent).
- Many expect to hire in 2020, yet fewer hired in 2019: Nearly a third of residential renovation and design companies plan to hire new employees in 2020 (34 percent). General contractors anticipate the most widespread increase in headcount (42 percent). Interestingly, a smaller share of companies across all industry groups hired in 2019 (24 percent).
- Rising business costs: Nearly three quarters of businesses reported an increase in the costs of doing business, such as products and materials and employee wages (72 percent). General contractors experienced the greatest impact (79 percent), compared with architects and interior designers (63 and 52 percent, respectively). On a related note, managing customer concerns over cost was a top business challenge (35 percent).
- Revenue growth was less widespread in 2019: While revenue continued to increase in 2019, there was a slight reduction in the number of businesses reporting an increase (61 percent in 2018 versus 58 percent in 2019). That said, a majority of businesses met or exceeded expectations in 2019 (56 percent), including five percent of businesses who saw results that were significantly higher than their expectations.

The complete 2020 Houzz Canada State of the Industry report can be found here.

There are more than 2.5 million active home renovation and design professionals on Houzz, including architects, interior designers, home builders and design and build firms.

* The Houzz Canada State of the Industry was conducted among home renovation firms in the Houzz Canada community that offer services related primarily to residential renovation and/or design. Companies were grouped into seven industry sectors including, architects, interior designers, general contractors and remodelers, design-build firms, building and renovation specialty firms, landscape and outdoor specialty firms, and decorating specialty firms. The study was fielded from December 4, 2019 to January 14, 2020. N=205.

About Houzz
Houzz is the leading platform for home remodeling and design, providing people with everything they need to improve their homes from start to finish – online or from a mobile device. From decorating a small room to building a custom home and everything in between, Houzz connects millions of homeowners, home design enthusiasts and home improvement professionals across the country and around the world. With the largest residential design database in the world and a vibrant community empowered by technology, Houzz is the easiest way for people to find inspiration, get advice, buy products and hire the professionals they need to help turn their ideas into reality. Headquartered in Palo Alto, Calif., Houzz also has international offices in London, Berlin, Sydney, Moscow, Tel Aviv and Tokyo. Houzz is a registered trademark of Houzz Inc. worldwide. For more information, visit houzz.com.