Hardware Retailing The Industry's Source for Insights and Information
Houzz recently released the Q3 2026 U.S. Houzz Pro Industry Barometer, revealing sentiment among construction and design professionals entering the third quarter of the year. Pros are approaching the second half of 2026 with optimism despite ongoing economic pressures, according to the report, as construction firms and design firms both expect improved business activity prompted by more project inquiries and 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,” says Marine Sargsyan, head of economic research at Houzz. “That optimism comes alongside persistent market pressures. Pros are navigating 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 (40% construction, 48% design), client financial uncertainty (33% construction, 49% design), increased costs of labor (28% construction, 20% design) and higher fuel or transportation costs (28% construction, 20% design).
Pros are adapting business strategies to address these challenges. Raising prices or rates was the most common response (40% construction, 35% design), followed by becoming more selective about project size and budgets (34% construction, 32% design) and adjusting project timelines or phases (29% construction, 27% design). Construction firms are also narrowing their geographic focus, with 1 in 5 concentrating on projects closer to their home office (20%) or reducing overall project volume (19%). Meanwhile, design firms are prioritizing relationships by focusing on repeat clients and referrals (25%).
Most construction and design firms anticipate ongoing pressures in the third quarter (92% construction and 90% design). Maintaining profitability remains a key pressure point across both sectors as pros continue to navigate elevated costs, labor pressures and client-related constraints.
Read the full report here.
