Remodeling firms and residential contractors have entered 2025 with renewed confidence, among other building industry professionals, after experiencing revenue and profitability declines in 2024. This is according to Houzz Inc.’s annual U.S. Houzz State of the Industry report which was recently released.
Houzz’s survey found that more than three in five firms are anticipating a positive outlook for their business for the year ahead. Specialty contractors in particular are leading in confidence.
According to Furniture Today, While 2024 proved challenging — marked by declining revenues and tighter project budgets — industry professionals anticipate a rebound. Specialty contractors and general contractors expect double-digit revenue growth in 2025, averaging 12.4% and 11.3%, respectively. Other sectors, including architects, design-build firms, interior designers and landscaping professionals, forecast growth between 9% and 9.4%.
“Home professionals are entering 2025 with renewed confidence and expectations for growth in both revenue and profitability after navigating two difficult years,” said Marine Sargsyan, Houzz staff economist. “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.”
