2026Q2 U.S. Houzz Pro Industry Barometer: Construction
Findings from the Q2 2026 Houzz Pro Industry Barometer, which tracks residential renovation market expectations, project backlogs and recent activity among businesses in the construction sector.
1 of
The Project Backlog Indicator is 5.6 weeks nationally at the start of Q2 2026 (compared with 6.4 weeks in Q2 2025): This marks a decline of 0.8 weeks year over year, indicating shorter pipelines across the industry. Wait times for build-only remodelers decreased to 4.6 weeks (compared with 4.8 weeks in Q2 2025), a modest 0.2-week reduction. In contrast, design-build remodelers report a more pronounced decline of 1.3 weeks to 6.7 weeks (down from 8.0 weeks in Q2 2025), driving much of the overall contraction. Notably, while backlog levels have eased across both groups, design-build firms report a longer wait time than build-only remodelers (6.7 vs. 4.6 weeks). The broader trend suggests that backlogs have normalized from the elevated levels seen in prior years, with the most significant adjustments occurring among design-build firms.
The Recent Business Activity Indicator related to project inquiries and new committed projects declined to 48 in Q1 2026 (compared with 51 in Q4 2025): This decrease is driven by a drop in new committed projects, which fell 7 points to 45 (down from 52), while project inquiries increased 2 points to 51 (up from 49). The divergence between the two components is notable. While project inquiries show some recovery, the decline in new committed projects suggests weaker near-term conversion of demand into signed work. Trends also diverge across pro types. Build-only remodelers report an indicator of 50 in Q1 2026 (down from 59 in Q4 2025), with project inquiries at 54 (down from 56) and new committed projects at 46 (down from 61). In contrast, design-build remodelers report an indicator of 46 (up from 43 in Q4 2025), reflecting an increase in project inquiries to 48 (up from 42) and new committed projects to 45 (up from 43).
Overall, while recent business activity remains below the 50-point threshold at the national level—indicating that more firms report declines than improvements—the data points to a split dynamic, with inquiry activity stabilizing while new committed projects continue to lag.
The Q2 2026 U.S. Houzz Pro Industry Barometer was fielded from March 17 through April 6, 2026 and garnered responses from 149 build-only remodelers and 313 design-build remodelers (n=462 in the construction sector).
See Related Stories:
The Q2 2026 U.S. Houzz Pro Industry Barometer was fielded from March 17 through April 6, 2026 and garnered responses from 149 build-only remodelers and 313 design-build remodelers (n=462 in the construction sector).
See Related Stories:
The Expected Business Activity Indicator related to project inquiries and new committed projects increased by 3 points to 58 in Q2 2026 (compared with 55 in Q1 2026), driven by gains in new committed projects: While project inquiries held steady at 57 (unchanged Q1 2026), new committed projects rose 6 points to 59 (compared with 53 in Q1 2026), signaling improved follow-through on existing demand. Trends diverge considerably across pro types. Design-build remodelers saw a strong rebound, with their indicator increasing 10 points to 66 (compared with 56 in Q1 2026), supported by increases in both project inquiries (63, compared with 58 in Q1 2026) and new committed projects (68, compared with 53 in Q1 2026). In contrast, build-only remodelers declined 5 points to 50 (compared with 55 in Q1 2026), with project inquiries decreasing to 51 (compared with 55 in Q1 2026) and new committed projects falling to 49 (compared with 54 in Q1 2026). Overall, while the index remains above the 50-point threshold—indicating that more firms expect improving business activity—momentum is uneven, with gains concentrated among design-build firms while build-only remodelers face softer near-term expectations.