Company News

Houzz Inc., the leading platform for home renovation and design, including the all-in-one software solution for industry professionals, today released the 2023 Houzz Australia State of the Industry.* The report provides an outlook on 2023 and a review of 2022 performance for residential renovation and design businesses, based on data reported by industry professionals in the Houzz community. Companies across the industry have a tempered perspective, with 54% anticipating a good or very good year and 36% expressing a neutral outlook for 2023. While the sentiment is less widespread than last year, more businesses expect increases in revenues and profits for 2023 than those expecting decreases (56% and 51%, respectively, versus 26% and 29%, respectively).

“Professionals in the home renovation and design industry have a moderate outlook about business activity in 2023, despite concerns around current economic conditions. Though less prevalent than last year, more businesses anticipate revenue growth,” says Marine Sargsyan, Houzz staff economist. “The 2023 Houzz State of the Industry reveals that professionals are willing to implement a diverse combination of marketing, financial and customer-centric strategies to achieve their business targets amidst high overhead and materials costs.”

2023 Australia State of the Industry: Major Findings
- A forecast for 2023: More than half of the residential companies surveyed expect this will be a good or very good year (53%), and 36% express a neutral outlook. Interior designers and decorators are the most optimistic, with 81% anticipating a good or very good year, followed by home builders (67%).
- Expectations for revenue: More businesses among the industry groups surveyed expect increases in revenue in 2023 (56%) than those expecting decreases (26%), albeit the sentiment is less widespread than last year.
- Increased demand anticipated: In 2023, a larger share of businesses believe that demand for their services will improve (51%), rather than decrease (36%). Interior designers and decorators, in line with their overall outlook for business in 2023, feel confident about demand this year, with more than half anticipating an increase (53%) and only one in eight expecting it to decline (13%).
- Costs of doing business rise: More firms across all of the industry groups cited an increase in the cost of doing business (84%) versus those citing a decrease (5%), with the share of businesses reporting an increase rising by 15 percentage points this year (84% compared with 69% in 2021).
- Pros implement diverse business strategies: Nearly two-thirds of businesses will target larger budget projects (63%) and half increased marketing and sales efforts (51%) to achieve expected growth in 2023. Businesses also plan to improve customer experience and employee productivity (37% and 33%, respectively).

The complete 2023 Houzz Australia State of the Industry report can be found here.

There are more than 3 million home renovation and design professionals on Houzz in over 60 categories, including architects, interior designers, home builders and design and construction 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 December 2022 to January 2023. N=85.

About Houzz
Houzz is the leading platform for home renovation and design, providing an all-in-one software solution for industry professionals and tools for homeowners to update their homes from start to finish. Using Houzz, people can find ideas and inspiration, hire professionals and source products. Houzz Pro (houzz.com.au/pro) provides home industry professionals with a business management and marketing SaaS solution that helps them to win projects, collaborate with clients and teams, and run their business 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. For more information, visit houzz.com.au. Houzz is a registered trademark of Houzz Inc. worldwide.