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While project backlogs remain higher than the same period last year, home renovation and design businesses in the construction sector and architectural design services sector experienced a decline in project backlog, according to the Q3 2018 Houzz Backlog Indicator.* The Houzz Backlog Indicator tracks the average number of weeks before a business can start work on a new midsize project and is a component of the U.S. Houzz Renovation Barometer.

Construction Sector The Backlog Indicator revealed that companies in the construction sector experienced project backlogs of 6.5 weeks nationally (down 3.4 weeks from Q2). Backlog declined among all three reporting business groups but most significantly for specialty trade contractors to three weeks (down 5.2 weeks from Q2). Build-only remodeler backlog declined to 9.8 weeks (down 0.9 weeks from Q2) and design and build remodeler backlog declined to 11.4 weeks (down 1.5 weeks from Q2). That said, overall backlog for the construction sector is nearly two weeks higher than the same period last year (4.6 weeks in Q3 2017).

Architectural and Design Services Sector In contrast to the quarterly decline experienced by the construction sector, the architectural and design services sector held steady quarter-over quarter at 5.6 weeks nationally. Among the three reporting business groups, architects’ backlog declined by one week to 4.5 weeks, landscape architects’ backlog increased to 6.6 weeks (up 1.5 weeks from Q2), and interior designers’ backlog remained somewhat steady at 7.4 weeks (up 0.4 weeks from Q2). Compared to last year, backlog for the architectural and design services sector as a whole is 1.6 weeks higher (versus four weeks in Q3 2017).

In addition to increasing year-over-year backlog, expectations for project inquiries and new projects in Q3 are high. The overall outlook for the home improvement market remains strong through the end of the year and beyond, according to our principal economist, Nino Sitchinava. For more of Nino’s insight on the market, check out her latest blog post here.

This week, the National Association of Realtors reported that existing home sales saw a four month decline in July to their slowest pace in over two years.

It’s time to take the party outside, according to the Houzz 2018 Landscaping Survey,* which found that over half of homeowners spend more time entertaining outside after completing landscaping projects (51%). More than a quarter of homeowners also report that their usable outdoor area is significantly larger than that of their home (27%). So transforming the yard into added living space creates an entertaining haven for the next garden party or backyard barbecue.

The study found that homeowners invest in a variety of elements during landscaping projects that make their outdoor areas more livable, including ample seating for family and guests with lounge furniture (43%), dining furniture (34%) and benches (27%). The addition of fire pits (38%), ceiling fans (15%) and patio heaters (14%), allow people to entertain outdoors year-round, and new string lights (35%) and rugs (14%) suggest a focus on exterior ambiance.

Technology also plays a role in making the yard entertainment-ready. Of the nearly one in five homeowners who added or upgraded entertainment systems during their landscaping projects (18%), three in five opted for a new television (59%), followed by wired and solar speakers (48% and 42%, respectively). One in 10 homeowners also added wired and solar charging stations (14% and 11%, respectively).

Curb Appeal Part of the Plan

While the majority of outdoor projects take place in the backyard (70%), nearly two in five landscaping homeowners update their front yard (39%) and more than a quarter work on side yards (30%). Homeowners adding or updating elements in the front of their home report that the most important features contributing to curb appeal are beds and borders (41%), shrubs (34%) and perennials (25%). Considering these priorities, it’s no surprise that they are also the most popular features installed in front of homes (60%, 54% and 56%, respectively).

The leading reason for homeowners to begin a landscaping project is to improve elements of the outdoor space that have deteriorated or broken down (29%). Following a year of unexpected weather patterns, one in ten homeowners report that their outdoor projects address damage from harsh weather or natural disasters (9%), including hurricanes (35%), rainstorms (26%) and drought (24%). Costs for landscaping projects vary widely, with more than half of homeowners who completed their outdoor renovation spending more than $10,000 (56%) and nearly one-third of homeowners spending less than $5,000 (32%).

Regardless of motivations or budget, the majority of homeowners who completed a landscaping project report that they spend more time outside (67%). Some of the other ways that homeowners enjoy their newly upgraded outdoor space include relaxing (62%) and gardening (44%).

The graphic below illustrates additional findings from the Houzz Landscaping Survey. You can also browse a collection of outdoor essentials from the Houzz Shop here.

With the holiday of love upon us, we surveyed our community* to find out what it’s like to remodel, redecorate or build a home with your significant other. The 2018 Houzz Remodeling & Relationships Survey found that more than half of respondents claim it was a collaborative and fulfilling experience (59% and 53%, respectively). But for some, love and home projects are like oil and vinegar, with one third finding the process frustrating (33%). Seven percent even considered separation or divorce during the project. That may sound shocking, but we’re happy to report that it’s quite an improvement from the 12 percent we found in our 2015 survey!

One in five respondents took issue with their significant other’s decorative items (18%). The most offensive items were posters and other artwork (52%), sports memorabilia (24%), childhood toys and mementos (24%) and homemade art (18%).

Nearly a third of respondents found the biggest challenge to be agreeing on products, materials and finishes (30%), followed by communication (29%), sticking to the budget (25%) and agreeing on style and/or design (25%).

So how can you overcome these challenges? The biggest piece of advice from those who’ve been through a home project with a significant other is to compromise (34%). Other solutions include gathering pictures and ideas from Houzz (31%) and getting advice from home professionals (29%).

Despite the challenges, a resounding 96% of respondents say the result was worth the effort. Seven in 10 report feeling more comfortable (70%) and 57 percent are happier at home following the project. Sixty-four percent say they spend more time together in their homes, just in time for Valentine’s Day.

A new home presents an opportunity to make it your own. According to the 2018 Houzz Kitchen Trends Study*, more than a quarter of homeowners remodelled their kitchen to personalize a recent purchase (28%). An even greater share of homeowners in urban centers agree (34%), compared to those in rural and suburban areas (28% and 27%, respectively). That said, kitchen projects are also triggered by homeowners who can no longer stand their old kitchen (41%) and those who wanted to do it all along and finally have the means (36%). We took a look at what is most important to kitchen remodelers.

As homeowners look to personalize their kitchens, storage and style are at the forefront of their functional and design priorities. Urban upgraders enjoy entertaining and find it to be a huge functional priority, compared to their rural counterparts (63% and 59%, respectively). Suburban homeowners prioritize things that add resale value to the home, more than urban upgraders do (29% and 20%, respectively).

Countertops are a key kitchen feature for remodeling homeowners. They are not only the most often upgraded (by 94% of renovating homeowners), but also the item homeowners choose to splurge on most (42%).

Homeowners are gravitating towards engineered quartz for their countertops. For the first time in three years, it is the most popular countertop material (43%), unseating granite (34%) and far surpassing butcher block or wood slab (13 percent). Engineered quartz is most common among suburban homeowners, followed by those in urban dwellings (45%) and rural areas (34%).

White is becoming increasingly popular for countertops, gaining six percentage points over the previous year (27% vs. 21% in the 2017 study) to tie for the most popular choice with multicolored countertops (27 percent). White is also chosen most often for cabinets (43%) and backsplash tile (36%), but it is only the second most popular color for walls (24%), behind gray (27%).

For additional findings on how homeowners are personalizing their kitchens, you can read the full 2018 U.S. Houzz Kitchen Trends Study at this link.

Given the popularity of photos and stories related to small spaces on Houzz, we surveyed our community* to find out how people living in small homes use creative decor and storage options to make their homes feel more spacious.

Considering that the two most popular characteristics of small home interiors are lots of natural light (57%) and easy access to the outdoors (54%), it seems homeowners incorporate external factors into their design decisions to give their homes a bright and airy atmosphere. Of those who upgraded their homes in the past two years, nearly one-third renovated outdoor spaces (30%) and more than a quarter created an open floor plan (26%) to extend their living areas.

The survey found that homeowners also choose room-defining area rugs (48%), limit the number of furniture pieces in each room (36%) and add mirrors (35%) to optimize their space. Many homeowners reduce clutter in their small homes by putting their stuff in exterior storage areas, like garages (44%), basements (34%) and yards or other outdoor spaces (31%).

While certain tasks, like storing things or hosting visitors, may be more challenging in small homes (as reported by 60% and 55% of homeowners), the above solutions show that there are many ways to live comfortably in a small space. In fact, nearly two in five homeowners report that their home is just the right size for their needs (39%). Furthermore, more than half say that relaxing and keeping spaces clean are especially easy in their small home (58% and 42%, respectively).

Additional findings are below and you can browse a collection of small space decor solutions from the Houzz Shop here.

This quarter, the Houzz Renovation Barometer, which tracks confidence in the home renovation market among industry professionals, gathered information specific to business conditions in the Houston metropolitan area and Southwestern Florida following the severe impact of hurricanes Harvey and Irma in these areas.*

The hurricanes had an immediate effect on renovation-related businesses, with 28% in the Houston metro area and 41% in Southwestern Florida reporting that they suspended operations within the first two weeks of the hurricanes making landfall. Among those companies, 91% impacted by Hurricane Harvey and 65% affected by Hurricane Irma kept their doors closed for a week or longer. Despite closures, 92% and 78% of affected companies in Texas and Florida, respectively, expect to fully recover financially over the next 12 months.

Business owners faced challenges reopening their doors as the hurricanes exacerbated shortages of subcontractors (as reported by 38% of respondents in both Southwestern Florida and the Houston metro area), scarcity of products and materials (20% and 15%, respectively) and damage to local infrastructure (20% and 15%, respectively). Managing cost-concerned customers and consumer expectations also became challenges for businesses impacted by Hurricanes Harvey and Irma (46% and 23%, respectively, and 31% and 23%, respectively). As a result, project backlogs** increased by nearly two weeks, on average, from 2.9 weeks to 4.4 weeks in the Houston metro area and from 4.8 weeks to 6.5 weeks in the Tampa metro area.

Despite hurricane-related business complications, backlogs in the Houston and Tampa metro areas are among the shortest of the top 20 metro areas. Consistent with Q2 2017 findings, the metro area experiencing the longest wait times is Boston (13.2 weeks), followed closely by Seattle (12.8 weeks). The St. Louis and Phoenix metro areas have the shortest average backlogs (3.5 and 3.6 weeks, respectively).

Overall, the Houzz Renovation Barometer showed continued quarter-over-quarter business confidence in the U.S. across all sectors in Q3 2017, including architects, designers, general contractors (GCs)/remodelers, design-builders, building/renovation specialists and landscape/outdoor specialists. For more information about the Q3 2017 Houzz Renovation Barometer, read the full report here.

* Hurricane Harvey made landfall in Texas on August 25, 2017 and Hurricane Irma struck the Florida coast on September 10, 2017. Findings about the impact of Hurricane Maria, which hit Puerto Rico on September 20, 2017, were not included due to very small sample sizes.

Master bathrooms are getting a style makeover, according to the 2017 U.S. Houzz Bathroom Trends Study,* which found that 90% of renovating homeowners change the style of their master bathroom during upgrades. Of those making a change to the overall style, contemporary (25%), transitional (17%) and modern (15%) lead in popularity. Design decisions vary by generation, with Millennial (25-34) homeowners opting most often for modern style master bathrooms, while contemporary is most popular among Gen-Xers (35-54) and Baby Boomers (55+).

White continues to gain popularity in renovated master bathrooms, with even more countertops and walls appearing in white this year (40% and 19%, respectively) compared with 2016 findings. Additionally, bathroom features are increasingly contrasted against gray walls and cabinet surfaces (35% and 14%, respectively, compared with 30% and 9% in 2016, respectively).

Millennials are significantly more likely to choose white countertops (52%) and cabinets (50%) and gray walls (48%) and flooring (43%) for their master bath than Baby Boomers. When it comes to wood cabinets, Baby Boomers tend to pick medium tones, while dark wood is preferred by Gen-Xers.

Among the 81% of renovating homeowners tackling master showers, ceramic and porcelain tile or natural stone tile and slabs are the top surface materials chosen, with marble being the universally preferred choice for natural stone, especially for Gen-Xers. Other materials see generational biases. For example, travertine is more likely to be installed by Baby Boomers, while slate is preferred by Millennial homeowners.

Ceramic or porcelain tile (63%) and natural stone tile or slab (32%) continue to top the flooring list, likely integrating the look of the shower with the rest of the bathroom surfaces. In contrast, these higher end finishes are less likely to appear on walls outside of the shower area, with just 27% choosing ceramic or porcelain tile and 15% opting for natural stone.

For more insights from the 2017 U.S. Houzz Bathroom Trends Study, check out the full report here.