The Houzz Renovation Barometer reports for both the construction and architectural and design sectors indicate softer markets in Q3. The Barometer tracks residential renovation market expectations and recent business activity in the construction and architectural design services industries.
Within the construction sector, the third-quarter Expected Business Activity Indicator decreased one point from Q2 to 58, while the Project Backlog Indicator was 6.1 weeks, 1.5 weeks lower than Q3 2024. The Q2 Recent Business Activity Indicator fell four points from Q1 to 38, primarily due to an eight-point drop in new project commitments.
The Q3 2025 Expected Business Activity Indicator declined four points from Q2 to 58 within the architectural and design sectors. The Project Backlog Indicator was 5.9 weeks at the beginning of Q3 2025, mostly unchanged from the comparable year-ago period. The Recent Business Activity Indicator plummeted 14 points to 45 in Q2 2025 compared to the prior quarter.
The Houzz Renovation Barometer results are determined by an online quarterly survey of U.S. architects and designers with a Houzz account. Scores over 50 indicate that a greater proportion of firms reported quarter-over-quarter increases than those reporting decreases. See Construction Barometer and Architectural and Design Barometer