GOLDEN, Colo., May 30 –Home improvement professionals remain confident about the state of their businesses, seeing increases in both project size and revenue per project over the past 12 months according to the results from the Q1 2018 HomeAdvisor Farnsworth Index*.
“With average home equity doubling over the past six years and the nation’s economy showing sustained growth in employment and income, home improvement professional see homeowners ready to spend money on their homes, not only on a larger number of projects, but larger project sizes, possibly putting their revenue growth into overdrive,” said Brad Hunter, Chief Economist for HomeAdvisor. “Home improvement professionals are feeling confident as of the first quarter of 2018 with a majority (82%) of the businesses surveyed expecting to see their revenue grow in the next 12 months.”
Confidence is robust nationwide, but home pros in the southern states are feeling the most confident about the future. “Home equity growth has been even stronger in parts of the South than in the nation as a whole and economic conditions there have been robust,” said Hunter. “In Florida in particular, homeowners have received a double-shot from the equity gains, because the locals have seen gains in their home values. And, homeowners who live most of the year in Florida’s “feeder markets” like New York and New Jersey, have enjoyed large gains in the values of their primary home “up north,” and that has given them the confidence to improve their vacation residence in Florida.”
“With home services playing such a large part in the country’s economy it’s important to gauge business confidence within this industry,” said Grant Farnsworth, Partner at The Farnsworth Group. “This index provides essential data to monitor the conditions of the home services, labor, manufacturing and retail markets and provides valuable insights into the correlations between consumer confidence and service professionals’ sentiment.”
- Home improvement companies rated their confidence 8.8 (out of 10), up from 8.7 last quarter. Exterior specialists confidence was highest of the groups polled, rising to an extremely high 9.2 (compared with 8.8 the same quarter a year earlier).
- 82% of all home improvement professionals expect their revenue to grow in the next 12 months; only 0.7 % expect a decline.
- Homeowners are opening their pocketbooks wider, finally taking on larger projects. 55% of contractors who responded to the survey said their average project size has increased over the past 12 months. Only 5% of pros reported over the past 12 months, a decrease in average project size. Exterior contractors saw the most dramatic increase in the average price tag of a project (coming in at 55.3% in the first quarter, versus 52.7% the same quarter a year ago).
- Home improvement companies reported an increase in average project size clustered around 6%-10% larger.
- Confidence in the ability to find enough labor is still an issue. 54% of businesses surveyed reported challenges hiring skilled workers, with the most acute issues being in landscaping companies at 62%, up from 57% a year ago.
The HomeAdvisor Farnsworth Index serves as the definitive monitor in the home improvement industry to track business confidence among trade professionals and small businesses. The Index provides insights on new business consumer leads and inquiries, volume and quality of job backlog, labor availability and costs, government and regulatory climate and the economy. The Index is based off the Q1 2018 HomeAdvisor Farnsworth Index, a quarterly survey of thousands of home professionals and small businesses across 13 business categories including remodelers, carpenters, painters, plumbers and roofers.
To request an interview with HomeAdvisor’s chief economist, Brad Hunter, please reach out to the media relations team. To view the complete Q1 2018 HomeAdvisor Farnsworth Index results, visit HomeAdvisor’s website.
HomeAdvisor® is a digital marketplace evolving the way homeowners connect with service professionals to complete home projects. With HomeAdvisor’s on-demand platform, homeowners can find and vet local, prescreened home service professionals; view average home project costs using True Cost Guide; and instantly book appointments online or through HomeAdvisor’s award-winning mobile app, which is compatible with all iOS, Android and virtual assistants, including Amazon Echo. HomeAdvisor is based in Golden, Colo., and is an operating business of ANGI Homeservices (NASDAQ: ANGI).
About The Farnsworth Group
The Farnsworth Group is a custom market research firm with 30 years of expertise serving manufacturers and retailers in the building products, hardware, home improvement, lawn and garden industries. The Farnsworth Group provides actionable insights based on primary research and industry expertise to help clients evaluate the DIY and Contractor markets.
*Data included in the Q1 2018 HomeAdvisor Farnsworth Index is based on an online survey conducted by HomeAdvisor and The Farnsworth Group. The survey was conducted nationwide from February 15-28 among 1,225 respondents who work in at least one of the following 13 trade professions: remodeling, kitchen and bath, roofing, siding and windows, HVAC, plumbing, electrical, painting, carpentry, drywall, flooring, landscape and decking. Also, each respondent represents that they have done at least 50 percent of their work on residential projects.