New data sheds light on homebuilding backlogs
What're the biggest holdups with homebuilding these days?
Houzz, a home renovation a design company, has released its latest Renovation Barometer, which tracks backlogs among architectural, design and construction businesses. According to the data tabulated between June 29 through July 9, 2024, and culled from 153 build-only remodelers and 362 design-build remodelers, masonry work is currently the biggest drag on productivity. Not far behind are cabinetry, carpentry and siding work.
Marine Sargsyan, staff economist for Houzz, says, “Labor shortages are a leading challenge among residential builders, remodelers and designers. Houzz research shows a range of three to six weeks before subcontractors can begin work on a new project, with the most significant backlogs among masonry and cabinetry services. These wait times highlight the need for careful planning and coordination to ensure timely project completion.”
She adds: "As kitchen and bathroom renovations remain the most popular renovations undertaken by homeowners, it is not surprising that these specialty groups—cabinetry, tiling, flooring, and painting—are in particularly high demand. That said, finding specialty providers can also depend on the complexity of the projects and local availability."
It's important to shed light on these wait times, she says, to ensure pros and homeowners alike are aware of potential project timelines and can plan accordingly.
Per other recent data collected by Houzz regarding the overall state of U.S. construction, the company found:
The Project Backlog Indicator is 7.6 weeks in the beginning of Q3, which is 5.4 weeks shorter than a year ago. Both build-only and design-build remodelers report decreased wait times compared to Q3 2023 (6.9 and 3.8 weeks shorter, respectively).
The Recent Business Activity Indicator related to project inquiries and new committed projects increased to 52 in Q2 2024, up 7 points from Q1. This is the first positive sentiment reported since Q3 2022 and is driven by a 9-point increase in project inquiries in Q2, relative to the previous quarter, and a 4-point increase in new committed projects to 52.
