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Home Professionals Bracing for Impact of Market Shifts
Firms are adjusting strategies and stockpiling materials, the Q2 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 Q2 2025 Barometer, fielded March 14-28, was expanded to include questions about how professionals expect market shifts, such as tariffs and interest rates, to impact their business and the industry as a whole.
The report found that firms across the industry expect these shifts to negatively impact their business. Additionally, many are adjusting procurement strategies and selectively stockpiling materials in anticipation of tariff-driven price hikes, especially on lumber, steel and cabinetry.
Here are more insights into construction and design businesses’ outlooks and strategies in the face of changing economic conditions.
The report found that firms across the industry expect these shifts to negatively impact their business. Additionally, many are adjusting procurement strategies and selectively stockpiling materials in anticipation of tariff-driven price hikes, especially on lumber, steel and cabinetry.
Here are more insights into construction and design businesses’ outlooks and strategies in the face of changing economic conditions.
Mitigation strategies vary. The majority of businesses across sectors (79% construction, 67% design) have a strategy in place to mitigate the impact of tariffs.
Strategies include:
Tell us: How are you adjusting your strategies in light of recent tariffs and other market shifts? Please share in the Comments.
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Strategies include:
- Passing increased costs on to their clients (68% construction, 48% design)
- Absorbing cost increases (21% construction, 8% design)
- Stockpiling materials (19% construction, 5% design)
Tell us: How are you adjusting your strategies in light of recent tariffs and other market shifts? Please share in the Comments.
More for Pros on Houzz
Read more stories for pros
Learn about Houzz Pro software
Talk with your peers in pro-to-pro discussions
Join the Houzz Trade Program
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Local or national factors (as reported by each industry sector) expected to impact business include:
- Tariffs (45% construction, 57% design)
- Increased costs of products and materials (50% construction, 53% design)
- High interest rates (27% construction, 28% design)
- Clients delaying projects (26%, construction, 27% design)
- Skilled labor shortages (28% construction, 17% design)
Professionals anticipate that a variety of materials will be affected. Pros are most concerned about tariffs on lumber or plywood (83% construction, 80% design), steel (57% construction, 63% design), flooring (46% construction, 52% design) and aluminum (46% construction, 50% design).The impacts of tariffs are expected to be wide-ranging. Businesses across both sectors (75% construction, 66% design) agree that tariffs will most heavily impact input costs. Other anticipated impacts include supply chain disruptions (53% for both) and reduced client budgets (50% for both). More designers (47%) than construction professionals (32%) anticipate reduced availability or selection of products or materials.
They’re worried about products too. Businesses in the design sector expect tariffs to impact appliances (65%), cabinetry (58%), lighting fixtures (58%), indoor furniture (58%) and outdoor furniture (48%). Construction businesses are concerned about cabinetry (66%), appliances (60%), plumbing fixtures (58%), lighting fixtures (53%) and windows (44%).
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