Industry Research
Firms Anticipate Concerned Clients and Strategy Shifts in 2026
Pros foresee homeowner hesitation due to costs and other concerns, the Q4 2025 U.S. Houzz Renovation Barometer shows
The quarterly U.S. Houzz Renovation Barometer asks more than 1,000 construction and architecture and design firms on Houzz about their expected, current and recent business activity. The just-released Q4 2025 Barometer, fielded Sept. 18-Oct. 6, also dug into pros’ anticipated client concerns and business plans for 2026.
While construction firms see renewed momentum heading into Q4, and design firms’ expectations are holding steady, the report found that nearly all businesses expect homeowners to raise concerns as they embark on renovation projects next year. At the same time, the vast majority of firms industrywide are planning to adjust how they do business.
Here’s a closer look at firms’ responses, broken down by industry sector.
While construction firms see renewed momentum heading into Q4, and design firms’ expectations are holding steady, the report found that nearly all businesses expect homeowners to raise concerns as they embark on renovation projects next year. At the same time, the vast majority of firms industrywide are planning to adjust how they do business.
Here’s a closer look at firms’ responses, broken down by industry sector.
Firms Plan to Adjust Operations
Nearly 9 in 10 construction and design firms (86% for both) expect to make changes to the way they run their businesses next year.
The most common strategies (as reported by each industry sector) include:
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Nearly 9 in 10 construction and design firms (86% for both) expect to make changes to the way they run their businesses next year.
The most common strategies (as reported by each industry sector) include:
- Adopting or upgrading technologies — particularly those with project management capabilities and AI-powered features (42% construction, 48% design)
- Placing greater emphasis on marketing and client acquisition (34% construction, 39% design)
- Adjusting pricing structures and contract terms to maintain stability (40% construction, 32% design)
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More than 9 in 10 residential construction and design professionals (93% construction, 96% design) expect clients to voice concerns when deciding whether to start or move forward with renovation projects in 2026.
The top anticipated homeowner concerns (as reported by each industry sector) include:
- Availability of products and materials (13% construction, 19% design)
Home Professionals Close 2025 With Varying Levels of Optimism