Optimism remains high among home building professionals.

The outlook is good for residential construction and design firms heading into 2025. According to remodeling and design platform Houzz, residential construction and design businesses are expecting increased project demand and revenue growth throughout the remainder of the year. The report shows that specialty contractors are the most optimistic, with 73% reporting a very good business outlook for the year. Interior designers, design/build firms, general contractors, and architects also have a positive business outlook, with a respective 70%, 68%, 61%, and 60% reporting high expectations for 2025. All seven business groups also expect to see increased revenue, and more than half of all businesses—51% to 77% across all groups—anticipate that demand for their services will increase.

“Home professionals are entering 2025 with renewed confidence and expectations for growth in both revenue and profitability after navigating two difficult years,” Houzz staff economist Marine Sargsyan says. “Pros report that they’ve implemented new processes for operational efficiency and client communication and made strategic investments in technology to address the challenges they faced last year. This will better position them for an anticipated increase in demand, enhance their resilience amidst potential tariffs and leverage expected improvements in both local and national economic conditions.”