Housing Pros Weary of Current Economic Conditions

Optimism among housing industry pros is low, according to home remodeling and design platform Houzz’s U.S. Renovation Barometer for Q3 2025. For the survey, Houzz spoke with more than 1,000 construction and architecture/design firms to find out about their current business activity and also how they expect national economic factors—such as tariffs and inflation—will impact their businesses.

The report shows that a majority of businesses are concerned about current economic conditions, with nine in 10 businesses—specifically 93% of surveyed construction companies and 94% of design firms—anticipating that current conditions will have a negative impact on their businesses. Tariffs were the top concern for most respondents; of the construction companies surveyed, 48% reported feeling concerned about tariffs, while 59% of architecture/design firms reported similar sentiments.

Professionals anticipate that a variety of materials will be affected. Pros are most concerned about tariffs on lumber or plywood (66% construction, 68% design), steel (56% construction, 65% design), flooring (50% construction, 60% design) and aluminum (41% construction, 43% design).

They’re concerned about the impact on products too. This quarter, businesses in the design sector anticipate tariffs to impact lighting fixtures (73%), appliances (71%) and indoor furniture (65%). Construction businesses are concerned about appliances (68%), plumbing fixtures (56%), cabinetry (55%) and HVAC systems (44%).