Home Pros Report Improvements in Labor Availability
Labor shortages have eased in Q2 2023 but continue to impact the home renovation industry, a Houzz survey shows.
Labor shortages in the home renovation and design industry are slightly less severe than they were a year ago, according to the Q2 2023 U.S. Houzz Renovation Barometer from Houzz, the leading platform for home remodeling and design, including the all-in-one software solution for industry professionals. Nearly four-fifths of residential construction and design businesses (79%) report moderate to severe shortages in the past quarter, down from 91% of businesses in Q2 2022. This may be a reflection of declining business activity levels, as new committed projects reported at the start of the year have decreased 5 points relative to Q3 2022.
Carpenters are in the shortest supply, followed by electricians and cabinet makers (as cited by 42%, 28% and 26% of industry pros, respectively). However, at least 30% fewer renovation and design pros are reporting shortages of these subcontractors as compared with the previous year.
Labor shortages continue to be a headwind for the home renovation and design industry. The most significant business impacts include increased project costs (81%), subcontractor compensation (72%), and project length (71%). For their part, pros are encouraging the next generation of tradespeople to enter the industry and relieve these constraints by offering on-the-job training for recent hires (54%) and leveraging social media to spread awareness of job opportunities (42%).
Beyond skilled labor, construction and design professionals are also facing challenges in securing the items they need to complete their projects. Nearly half of businesses not only report moderate to severe shortages of products and materials (49%), but also shipping delays once purchased (63%). Material challenges are greatest with copper or brass (47%), followed by lumber or plywood (46%), drywall (40%) and aluminum (40%). Delays in the arrival of cabinetry (96%), indoor furniture (95%), windows (94%), outdoor and indoor doors (94% and 93%, respectively) and lighting fixtures (92%), are top of mind for pros as they plan their project timelines.
Houzz is the leading platform for home remodeling 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 shop for products.
* The Q2 2023 U.S. Houzz Barometer was fielded March 3 through March 24, 2023 and garnered responses from over 1,547 home improvement firms on Houzz. Recent and expected business indicators, as well as backlog data, will be included in the Q3 2023 Houzz Renovation Barometer, set to be released in July 2023.