Houzz: Construction, Design Pros Cautiously Optimistic for 2026

Despite economic uncertainty, many businesses project stable demand and plan strategic changes to protect margins and drive growth.

Jan. 28, 2026 at 10:07am

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Houzz Inc., a software platform for construction and design, has released its Q1 2026 U.S. Houzz Pro Industry Barometer, showing a moderately positive outlook among construction firms and a more mixed sentiment in the design services sector. While expectations for the broader national economy remain subdued, many businesses anticipate stable demand for their projects and are adjusting their strategies to drive revenue growth in 2026.

Why it matters

The construction and design industries play a crucial role in the overall economy, and their outlook can provide insights into broader economic trends. This report from Houzz highlights the resilience and adaptability of these sectors as they navigate ongoing challenges, such as labor shortages and rising costs.

The details

According to the Houzz report, 56% of construction firms anticipate a good to very good year, while 50% of design firms expect the same. However, 16% of construction firms and 15% of design firms anticipate weaker performance than the previous year. Businesses are adjusting their strategies by raising prices, prioritizing larger and higher-value projects, and investing in employee productivity, including the use of AI-enabled software tools.

  • The Q4 2025 Barometer was fielded from December 2-22, 2025.
  • The report was released on January 28, 2026.

The players

Houzz Inc.

An all-in-one software platform for construction and design.

Marine Sargsyan

The head of economic research at Houzz.

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What they’re saying

“Construction and design businesses are heading into 2026 with a measured but resilient outlook. While expectations for the broader national economy remain subdued and cost and labor pressures persist, many firms anticipate stable demand for their projects.”

— Marine Sargsyan, Head of Economic Research

The takeaway

The construction and design industries are demonstrating their ability to adapt to economic challenges, with many businesses planning strategic changes to protect their margins and drive growth in 2026. This resilience highlights the importance of these sectors in the broader economy and their potential to weather ongoing uncertainties.