Construction professionals are gaining optimism following a significant rebound in business activity going into the fourth quarter of 2025, according to Houzz’s Renovation Barometer report.
“Construction professionals are closing the year with renewed confidence, supported by a surge in project activity in the third quarter and recent interest rate cuts,” Houzz staff economist Marine Sargsyan said in a statement. “While backlogs have come down from record highs, firms continue to manage steady pipelines and make adjustments to maintain profitability.”
The report found that the Expected Business Activity Indicator for construction businesses related to project inquiries and new committed projects, increased by 8 points to 66 for the fourth quarter, up from 58 last quarter. The increase is largely driven by a 12-point uptick in expectations for new committed projects in the fourth quarter.
The Project Backlog Indicator is 5.4 weeks at the beginning of the fourth quarter, which is 5.1 weeks shorter than at the same point a year ago.
The Recent Business Activity Indicator related to project inquiries and new committed projects jumped to 55 from 38 in the second quarter.
Read the full report here.
