2025Q4 Houzz Renovation Barometer -Construction Sector
Findings from the Q4 2025 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
The Project Backlog Indicator is 5.4 weeks nationally at the start of Q4 2025: The Project Backlog Indicator for the construction sector is 5.1 weeks shorter than a year ago. Wait times for build-only remodelers are 4.4 weeks, which is 3.9 weeks shorter compared with Q4 2024. Design-build remodelers report a 6.5-week decrease in wait times to 6.3 weeks when compared with Q4 2024.
Geographically, backlogs for the construction sector vary significantly, from 3.4 weeks in the Mountain division (Arizona, New Mexico, Wyoming, Nevada, Colorado, Utah, Idaho, and Montana) to 7.1 weeks in the New England division (Maine, Massachusetts, Connecticut, New Hampshire, Rhode Island, and Vermont).
The Recent Business Activity Indicator related to project inquiries and new committed projects increased to 55 in Q3 2025 (up 17 points compared with Q2): This is driven by a significant 20-point increase in project inquiries in Q3 and a 13-point increase in new committed projects, reaching 62 and 48 points, respectively. Among the two reporting industry groups, the indicators are above the 50-point line, as more businesses report increases in business activity rather than declines compared with Q2. In particular, the recent business activity indicator is up 21 points for build-only remodelers and 12 points for design-build firms, reaching 56 and 54 points in Q3, respectively. This score above 50 suggests that business activity in Q3 was stronger compared with Q2.
The Q4 2025 U.S. Houzz Renovation Barometer was fielded from September 18th through October 6th, 2025 and garnered responses from 158 build-only remodelers and 330 design-build remodelers (n=488 in the construction sector).
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The Expected Business Activity Indicator related to project inquiries and new committed projects increased by eight points to 66 for Q4 (compared with 58 in Q3): This increase is mainly driven by a 12-point rise in expectations for new committed projects in Q4. Similarly, the expectations for project inquiries increased to 67 in Q4 (from 64 in Q3). Among the two reporting groups, expected business activity indicators now stand at 66 for both build-only remodelers and design-build firms, which is an increase of 8 points each, compared to Q3. A score above 50 suggests that more businesses anticipate improved business activity in Q4 compared with Q3.