The quarterly U.S. Houzz Renovation Barometer asks more than 1,000 construction and architecture and design firms on Houzz about their expected, current and recent business activity. The just-released Q2 2025 Barometer, fielded March 14-28, was expanded to include questions about how professionals expect market shifts, such as tariffs and interest rates, to impact their business and the industry as a whole.

The report found that firms across the industry expect these shifts to negatively impact their business. Additionally, many are adjusting procurement strategies and selectively stockpiling materials in anticipation of tariff-driven price hikes, especially on lumber, steel and cabinetry.

Here are more insights into construction and design businesses’ outlooks and strategies in the face of changing economic conditions.