Despite Weakened Activity, Housing Pros Remain Optimistic

After starting the year on weak footing, the housing industry entered Q-2 2026 with renewed optimism. According to home remodeling and design platform Houzz’s Q-2 2026 Pro Industry Barometer, construction firms expect to see a modest increase in new projects, while design firms maintain positive expectations despite seeing declines in recent activity.

Residential construction firms are expecting to see more business in Q-2 2026

Residential construction firms are expecting to see more projects in Q-2 2026. Houzz’s Expected Business Activity Indicator for construction-related firms increased by three points to 58 for Q-2 2026, up from 55 the prior quarter.

Meanwhile, the Expected Business Activity Indicator for architectural and design services firms declined by one point. Still, it remains higher than the expected activity indicator for construction firms. For Q-2 2026, the activity indicator for design firms declined to 60 from 61 the prior quarter.

Still, project backlogs are dwindling

For construction firms, Houzz's Project Backlog Indicator—which measures the average wait time before firms can begin new projects—declined to 5.6 weeks at the start of Q-2 2026, compared with 6.4 weeks a year earlier. For design firms, the Project Backlog indicator fell even further to four weeks, down from 5.7 weeks one year earlier.