Residential remodeling firms across the country report strong confidence in the health of the industry, according to the Q1 2016 Houzz Renovation Barometer. While the majority of firms overall are optimistic in year-over-year and quarter-over-quarter market improvements, some regions are more confident than others – and some are being hit especially hard by current industry challenges.

Pro Confidence 1: Original chart on Houzz

The Q1 Barometer readings indicate high quarter-over-quarter confidence nationally, across all industry groups, thanks in part to a seasonal uptick in market activity. However, rainy weather in the West contributed to weaker confidence for firms in this region, which posted scores of 67-73 vs. national scores of 72-84.

Pro Confidence 2: Original chart on Houzz

Firms across the country posted widespread year-over-year increases in business inquiries and the number and size of new projects in Q1 2016. Northeastern pros in a number of sectors are especially bullish. General contractors, remodelers, building/renovation specialty firms and landscape/outdoor specialty firms in the Northeast all reported an increase in year-over-year market gains in Q1 2016 compared to Q1 2015.

Pro Confidence 3: Original chart on Houzz

Labor shortages continue to be a top challenge for renovation-focused professionals nationally. Four in five remodelers and design-build firms report moderate to severe shortages in skilled trade professionals and general laborers.

Firms in the Midwest are especially impacted by this challenge, with nearly nine in ten firms in the region experiencing moderate to severe shortages. Northeastern firms are impacted the least, with 72% of these firms reporting significant shortages.

For more information from the Q1 2016 Houzz Renovation Barometer, see the full report. This includes additional findings among architects, interior designers, general contractors, design-build firms and more.