2026Q1 U.S. Houzz Pro Industry Barometer: Construction
Findings from the Q1 2026 Houzz Renovation Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
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The Project Backlog Indicator is 6.1 weeks nationally at the start of Q1 2026: The Project Backlog Indicator for the construction sector is 0.3 weeks longer than a year ago. Wait times for build-only remodelers are 5.5 weeks, which is 0.5 weeks longer compared with Q1 2025. Design-build remodelers report a 0.1-week decrease in wait times to 6.6 weeks when compared with Q1 2025.
The Recent Business Activity Indicator related to project inquiries and new committed projects declined to 51 in Q4 2025 (down 4 points compared with Q3): The decline is driven by a 13 point decrease in project inquiries in Q4 yet a 3-point increase in new committed projects, reaching 49 and 52 points, respectively. Among the two reporting industry groups, the indicators diverge with build-only having it above the 50-point line, as more businesses report increases in business activity rather than declines compared with Q3 and below the line for the design-build remodelers. In particular, the recent business activity indicator is up 3 points for build-only remodelers and down 11 points for design-build firms, reaching 59 and dropping to 43 in Q4, respectively.
The Q1 2026 U.S. Houzz Renovation Barometer was fielded from December 2 through December 22nd, 2025 and garnered responses from 170 build-only remodelers and 385 design-build remodelers (n=555 in the construction sector).
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The Expected Business Activity Indicator related to project inquiries and new committed projects decreased by 11 points to 55 for Q1 (compared with 66 in Q4 2025): This decrease is driven by a notable decline in expectations for project inquiries to 57 and new committed projects to 53 for Q1. Among the two reporting groups, expected business activity indicators now stand at 55 for build-only remodelers and 56 for design-build firms, which is a decline of 10 points each, compared to Q4 2025. A score above 50 suggests that more businesses anticipate improved business activity in Q1 compared to the previous quarter.