The Houzz Renovation Barometer report for the construction sector shows improvement, while the report for the architectural design sector indicates a softer market in Q4. The Barometer tracks residential renovation market expectations and recent business activity in the construction and architectural design services industries.
Within the construction sector, the fourth quarter Expected Business Activity Indicator increased eight points from Q3 to 66, while the Project Backlog Indicator was 5.4 weeks, 5.1 weeks less than Q4 2024. The Q3 Recent Business Activity Indicator surged 17 points from Q2 to 55, primarily due to substantial growth in project inquiries and commitments, strengthening 20 points and 13 points, respectively.
The Q4 2025 Expected Business Activity Indicator rose one point from Q3 to 59 within the architectural and design sectors. The Project Backlog Indicator was 5.5 weeks at the beginning of Q4 2025, a 0.8-week decline from the comparable year-ago period. The Recent Business Activity Indicator dipped two points to 43 in Q3 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