‘Cautious optimism’ is the forecast for 2025, finds new industry report
Houzz UK State of the Industry report 2025 finds two in five industry professionals expect a good or very good year.
Acting both as an outlook for 2025 and a review for 2024, the report is based on professionals within the Houzz home renovation and design community.
Those involved are “approaching 2025 with a sense of cautious optimism,” says Houzz staff economist Marine Sargsyan.
“Pros report that they’re implementing new processes for operational efficiency and client communication, and making strategic investments in technology to address the challenges they faced last year.”
Those expecting revenue growth have increased by 4% in comparison to last year’s report (57%).
The report also reveals that nearly 9 in 10 firms will prioritise investments, and a quarter plan to expand their team in 2025.
This comes after what the report calls a ‘year marked by revenue and profitability declines’ across sectors.’
The report acknowledged the 2024 decline in profit found primarily in architecture practices, interior designers and design and build firms.
More than three in five firms reported reduced profitability last year, while 47% reported lower revenue.
The study was researched from December 2024 to February 2025, and the full report can be accessed here.