The Q3 2026 US Houzz Pro Industry Barometer notes optimism among construction and design professionals despite ongoing economic pressures. Houzz Inc. released the report, which finds that these professionals are entering Q3 with optimism, driven by stronger project inquiries.
Construction firms expect business activity to improve, even after the recent business activity indicator remained below the 50-point threshold in Q2. Design firms enter the quarter with significant momentum fueled by gains in both project inquiries and new committed projects.
“Construction and design pros are heading into Q3 with renewed confidence as expectations for improved business activity broaden across the industry, with the design sector seeing especially strong momentum,” said Marine Sargsyan, head of Economic Research at Houzz. “That optimism comes alongside persistent market pressures.
Pros are facing a combination of cost, labor and client-related concerns, and they are responding strategically to protect profitability.” Recent challenges were led by a mix of rising product and material costs, client financial uncertainty, increased costs of labor, and higher fuel or transportation costs.
They are adapting business strategies, with raising prices or rates being the most common response, followed by becoming more selective about project size and budgets and adjusting project timelines or phases.
The Expected Business Activity Indicator for construction businesses increased by 3 points to 61 for Q3 2026, driven primarily by greater expectations for project inquiries. New committed projects also inched up to 60. Trends diverged across pro types, with build-only remodelers anticipating improved Q3 business activity.
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The Project Backlog Indicator is steady compared with the same time last year, at 6.1 weeks at the start of Q3 2026. Build-only remodelers report a 6.0 week backlog, while design-build remodelers report a 6.2 week backlog.
Most construction and design firms anticipate ongoing pressures in the coming quarter, with maintaining profitability remaining a key pressure point across both sectors.
The Expected Business Activity Indicator for the design sector increased to 68 for Q3 2026, reflecting expected gains in both project inquiries and new committed projects.
Construction and design professionals will likely prioritize relationships and focus on repeat clients and referrals, which could help them maintain profitability and stay competitive in the market.
The quarterly US Houzz Pro Industry Barometer provides timely insights into the residential construction and design industry, including expectations, project backlogs, and recent activity among businesses in the US construction and architectural and design services sectors.
Detailed methodology and underlying quarterly indices for the construction sector and the architectural and design services sector can be found on houzz.com/research. The Q3 2026 Barometer was fielded July 2 through July 8, 2026, and garnered responses from nearly 1,000 firms in the construction and design industry on Houzz.
