Company News

Sydney, Australia., 4 May 2022 - Houzz Inc., the world’s leading platform for home renovation and design, today released the 2022 Houzz Australia State of the Industry.* The report provides an outlook on 2022 and review of 2021 performance for residential renovation and design businesses based on data reported by industry professionals in the Houzz community. Businesses have a confident outlook for 2022, with nearly three-quarters anticipating revenue growth (73 percent) and two-thirds expecting profits to increase (66 percent). This follows strong 2021 results with more companies reporting revenue growth, as compared to the previous four years, exceeding expectations for the year.

“Following a successful year for the home renovation and design industry, the findings from the Houzz State of the Industry show that professionals are confident that momentum will continue through 2022,” says Tony Been, Managing Director at Houzz Australia. “The positive outlook is prevalent across industry groups from interior designers to builders, despite global challenges and increased costs of doing business.”

2022 Australia State of the Industry: Major Findings

• Interior designers are most optimistic about 2022: Interior designers and decorators are the most optimistic about revenue growth in 2022 (77 percent), followed by home builders and building designers (76 and 72 percent, respectively). Companies across all industry sectors plan to grow revenue by increasing marketing and sales efforts and increasing prices, markups and margins (52 percent, each).
• Revenue growth surpassed expectations in 2021: In 2021, a larger share of businesses reported year-over-year revenue growth than in the last four years (70 percent). Two-thirds of companies reported that revenue growth was at or above their initial expectations for the year (66 percent). Nearly 4 in 5 interior designers reported increases in gross revenues in 2021 (79 percent), followed by building designers and home builders (67 and 63 percent, respectively).
• Hiring is on the rise: More than a quarter of businesses increased 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 last year (47 percent), compared with interior designers and building designers (32 percent, each). Hiring is expected to continue among a third of businesses in 2022 to support revenue growth (34 percent).
• Increases in the cost of doing business: Nearly seven in 10 businesses reported 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 complete 2022 Houzz AU State of the Industry report can be found here.

There are more than 2.7 million active home renovation and design professionals on Houzz, including architects, interior designers, home builders and design and build firms.

* The Houzz Australia State of the Industry was conducted among home renovation firms in the Houzz Australia community that offer services related primarily to residential renovation and/or design. The study was fielded from February 21, 2022 to March 9, 2022. N=147.

About Houzz
Houzz is the leading platform for home renovation and design, providing people with everything they need to improve their homes from start to finish. On Houzz, people can find design inspiration, research and hire home professionals to complete their projects. For home professionals, Houzz Pro (houzz.com.au/pro) provides an all-in-one software solution that empowers industry pros to stand out, win clients and manage their projects efficiently and profitably. The Houzz community is made up of millions of homeowners, home design enthusiasts and home improvement professionals around the world. Houzz is available on the web and as a top-rated mobile app. Houzz is a registered trademark of Houzz Inc. worldwide. For more information, visit houzz.com.au.