Home renovation professionals anticipate business growth in 2022

The Houzz Market Study 2022 in Spain reveals the general increase in income in companies in the sector

Houzz.es, online platform specialized in home design and renovation, has presented the results of the Houzz Market Study 2022 in Spain. This report offers a general review of the results of the companies in the sector during 2021 and expectations for 2022, based on data provided by home renovation and design companies.

The report reveals that nearly three quarters of professionals (72%) expects to grow its gross income in 2022, and two thirds (63%) expect profits to rise too. In this way, the positive trend continues 2021, where more companies declared to have had a higher revenue growth than in the previous four years.

“After a prosperous year for the home renovation and design industry, Houzz Market Research data reveals that professionals are optimistic and expect the momentum in the industry to continue through 2022”, afirma Marine Sargsyan, Senior Economist at Houzz. “The positive trend prevails in all the groups of the sector, from interior designers to builders, despite global challenges and rising costs”, Add.

Main results:

1. Architects and design and construction companies, the most optimistic in 2022: architects and design and construction companies are the most optimistic about their revenue growth in 2022 (78% each), followed by interior designers (74%). Companies in the sector plan to increase their profits by closing larger budget projects, increasing efforts in marketing and sales and improving the customer experience (61%, 50% Y 42%, respectively).

2. Revenues exceeded expectations for 2021: in 2021, the 61 % of companies declared having had higher revenue growth than in the previous four years. Three out of five companies reported that their revenue growth matched or exceeded initial expectations for the year (60%). Nearly two-thirds of interior designers (63%) declared an increase in gross receipts in 2021, followed by architects and design-build companies (62% Y 56%, respectively).

3. Increase in the number of employees: And 25 % of companies increased their workforce by 2021 compared to the 15% who claimed to have done it 2020. Design-build firms were the most likely to hire last year (33 %), followed by architects and interior designers (25 % Y 13 %, respectively). In 2022 hiring is expected to continue to grow. And 29 % of companies plan to hire new employees to support revenue growth.

4. Price volatility affects the entire sector: Product and material price volatility is a major challenge for one in eight businesses (12%). More than half of the companies (54%) confirm an increase in their costs in 2021. Architects were the most affected by the increase in costs (57%), with design and construction companies and interior designers (55% Y 49%, respectively) as the following most affected professionals.