2026Q3 U.S. Houzz Pro Industry Barometer: Construction
Findings from the Q3 2026 Houzz Pro Industry 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 Q3 2026 (compared with 6.1 weeks in Q3 2025): This marks no change year over year, indicating stable pipelines across the industry overall. Wait times for build-only remodelers decreased to 6.0 weeks (compared with 6.4 weeks in Q3 2025), a 0.4-week reduction. In contrast, design-build remodelers report an increase of 0.4 weeks to 6.2 weeks (up from 5.8 weeks in Q3 2025), offsetting the decline among build-only remodelers. Notably, backlog levels have converged across both groups, with design-build firms now reporting a wait time only slightly longer than build-only remodelers (6.2 vs. 6.0 weeks). The broader trend suggests that backlogs remain steady year over year, with build-only remodelers easing modestly while design-build firms see a slight lengthening in timeline.
The Recent Business Activity Indicator related to project inquiries and new committed projects declined to 47 in Q2 2026 (compared with 48 in Q1 2026): This modest decrease was driven largely by a slip in project inquiries, which fell 1 point to 50 (down from 51), while new committed projects held steady at 45 (unchanged from Q1). Unlike the prior quarter, the two components move roughly in tandem here, with only a slight softening overall.
Trends diverge more clearly across pro types. Build-only remodelers report an indicator of 47 in Q2 2026 (down from 50 in Q1 2026), with project inquiries falling to 48 (down from 54) even as new committed projects ticked up to 47 (from 46). In contrast, design-build remodelers report an indicator of 47 (up from 46 in Q1 2026), reflecting a notable increase in project inquiries to 52 (from 48), even as new committed projects eased to 43 (from 45).
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 across pro types, with build-only remodelers seeing incoming demand soften even as conversion holds up, while design-build firms see stronger inquiry activity offset by softer follow-through on new committed projects.
Trends diverge more clearly across pro types. Build-only remodelers report an indicator of 47 in Q2 2026 (down from 50 in Q1 2026), with project inquiries falling to 48 (down from 54) even as new committed projects ticked up to 47 (from 46). In contrast, design-build remodelers report an indicator of 47 (up from 46 in Q1 2026), reflecting a notable increase in project inquiries to 52 (from 48), even as new committed projects eased to 43 (from 45).
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 across pro types, with build-only remodelers seeing incoming demand soften even as conversion holds up, while design-build firms see stronger inquiry activity offset by softer follow-through on new committed projects.
The Q3 2026 U.S. Houzz Renovation Barometer was fielded from July 2 through July 8, 2026 and garnered responses from 128 build-only remodelers and 296 design-build remodelers (n=424 in the construction sector).
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The Expected Business Activity Indicator related to project inquiries and new committed projects increased by 3 points to 61 in Q3 2026 (compared with 58 in Q2 2026), driven by gains in project inquiries: While new committed projects inched up to 60 (compared with 59 in Q2 2026), project inquiries rose 4 points to 61 (compared with 57 in Q2 2026), signaling stronger incoming demand. Trends diverge considerably across pro types. Build-only remodelers saw a strong rebound, with their indicator increasing 9 points to 59 (compared with 50 in Q2 2026), supported by increases in both project inquiries (59, compared with 51 in Q2 2026) and new committed projects (58, compared with 49 in Q2 2026). In contrast, design-build remodelers declined 3 points to 63 (compared with 66 in Q2 2026), as new committed projects fell to 61 (compared with 68 in Q2 2026) while project inquiries held roughly steady at 64 (compared with 63 in Q2 2026). Overall, while the index remains above the 50-point threshold—indicating that more firms expect improving business activity—momentum shifted this quarter, with gains concentrated among build-only remodelers while design-build firms face softer near-term expectations for new committed projects.