Construction and design professionals are heading into 2026 with a cautiously optimistic perspective, according to the Q1 2026 U.S. Houzz Pro Industry Barometer. Many firms anticipate stable demand and growth opportunities for the year, but ongoing cost pressures, labor constraints and broader economic uncertainties are prompting businesses to adjust strategies to protect margins. A majority (56%) of firms in the construction sector are expecting a good to very good year, 28% are anticipating stable conditions, and 16% foresee weaker performance than in 2025. In the architectural and design services sector, half (50%) expect a strong year, 35% report a neutral outlook and 15% anticipate declines in business performance. Construction firms’ expectations are more subdued for the first quarter of 2026 — after a softening in late 2025 — than for the year overall. Architecture and design firms are on a stronger footing in the first quarter of 2026, buoyed by increased business activity in the fourth quarter of 2025. “Construction and design businesses are heading into 2026 with a measured but resilient outlook,” says Marine Sargsyan, head of economic research at Houzz. “While expectations for the broader national economy remain subdued, and cost and labor pressures persist, many firms anticipate stable demand for their projects. To drive revenue growth in 2026, businesses are adjusting their strategies by raising prices, prioritizing larger and higher-value projects and investing in employee productivity, reflecting broader industry interest around AI-enabled software tools such as Houzz Pro.”

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