Construction and Design Pros Enter 2026 With Improved Outlook

Heading into 2026, business conditions for the residential construction and design industry are looking stable. According to home remodeling and design platform Houzz’s Q-1 2026 Industry Barometer, most industry pros have a positive outlook for the year ahead. Of those surveyed, 56% expect to have a good to very good year, while 28% expect business conditions to remain the same, and just 16% anticipate weaker performance in 2026 than in the previous year.

The business outlook for the construction sector is down slightly, but design pros are more optimistic

The outlook among construction pros is stable but slightly lower than Q-4 2025. Houzz’s Expected Business Activity Indicator for construction businesses related to project inquiries and new committed projects decreased by 11 points quarter-over-quarter to 55. Meanwhile, design firms are more optimistic. The Expected Business Activity Indicator for design firms rose by two points quarter-over-quarter to 61.

Still, expectations on the broader economy are mixed

While the industry outlook is mostly positive, the outlook for the broader economy is mixed. Some businesses expect local economic conditions to strengthen; that’s true for 38% of construction pros and 43% of design pros. Meanwhile, 29% of construction pros and 26% of design pros expect the economy to worsen.