Home building and design professionals are expecting to see less business activity in Q2 2025.
In early 2025, construction and design professionals started the year with optimism, but that confidence tapered off in Q2 2025. According to remodeling and design platform Houzz’s Q2 2025 Renovation Barometer, construction businesses have seen a slowdown in activity due to economic uncertainty in the housing market. Houzz’s Recent Business Activity Indicator for construction firms, which measures project inquiries and new commitments, has dropped by 12 points compared with last quarter. Design firms are fairing slightly better, but only saw their Recent Activity Indicator increase by one point quarter-over-quarter.
“Optimism continues, yet residential construction and design businesses are moderating expectations amid mixed Q1 activity and economic uncertainty,” Houzz staff economist Marine Sargsyan says. “This tempered outlook is unsurprising, as firms continue to navigate challenges including rising material costs, cautious client spending and persistent labor shortages. In response, many firms are proactively adjusting procurement strategies and selectively stockpiling materials in preparation for anticipated tariff-driven price hikes, especially on lumber, steel and cabinetry.”Read more
