The Q2 2026 U.S. Houzz Pro Industry Barometer shows cautious optimism in construction and design sectors despite recent activity declines. Construction firms expect a rebound, especially design-build firms, while interior designers are more optimistic than architects. Rising costs, economic uncertainty, client hesitation, and labor shortages remain key concerns. Firms are improving client communication, adjusting pricing, and enhancing recruitment with training, academic partnerships, and technology use. Project backlogs and recent activity indicators have generally declined year-over-year.