Featured on this episode:

• Access the full video interview with Elana Steele of Steele Appliance here

What you will learn in this episode:

• Discover why renovation is now the most stable and profitable service you can offer as a designer.
• Learn how to use the latest industry data to future-proof your business and navigate economic ups and downs.
• Get actionable strategies to strengthen your construction expertise and build lasting, high-value client relationships.

Let’s Get Real About 2026: What NAHB Data Just Confirmed

As we close out 2025 and gear up for what’s next, I want to talk about something every designer needs to know—something essential for long-term stability, profitability, and relevance. Today, we’re unpacking the brand new NAHB data analysis that just dropped, confirming something I’ve been saying for years on this podcast:

Construction is the most stable revenue stream in residential design. Decorating is a luxury, and luxuries pause in uncertain times. Renovation? It’s now the dominant force in our industry.

Let’s break down what this means for you—how to use the data, what it means for your business model, and a behind-the-scenes look at how all this has played out in my own business.

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Who is NAHB and Why Should We Care?

NAHB stands for the National Association of Home Builders, and if you work in residential design, their data is gold. This is the same data banks, economists, real estate analysts, and (most importantly) builders use to make major decisions—and so should we. They track 25 years of federal census and employment stats, showing exactly what’s happening inside our world.

Why Designers Need to Pay Attention to Industry Trends

Here’s the thing: your expertise isn’t just about finding the perfect sofa or pairing the right fabric with a color palette. To stay profitable, respected, and in demand, you have to keep your finger on the pulse of industry trends, labor shifts, and—most importantly—what homeowners are actually spending money on. That’s how you future-proof your business.

So what does the data show? Get this: The number of construction firms focused solely on remodeling has nearly doubled in 25 years! In 2000, there were fewer than 69,000 remodeling-focused firms. Now? There are over 128,000. Today, remodeling companies make up 56% of all residential construction firms. That. Is. Massive.

Why Construction Survives (And Decorating Disappears) in Tough Times

Let me drive this home with a real-life example from the housing crash in 2008. Builders closed up shop—one-third went out of business. Remodeling firms? The numbers dipped by only 8%. I lived through it. Those were three of the scariest financial years for nearly every designer I know.

Here’s the truth: Decorating evaporated. It didn’t slow down—it vanished. But construction projects? They stayed. People still needed functioning kitchens, safe bathrooms, and more usable space—sometimes for family moving back home. Because I had construction expertise, my income stayed nearly identical, solely from construction work.

This isn’t just theory. It’s lived experience—now backed by hard national data.

Why Renovation Is Booming

The NAHB analysis outlines some fascinating reasons behind this trend:

• New Homes Are Unaffordable: With the median age of a new homebuyer rising, people renovate what they have.
• America’s Housing Stock Is Old: Whether you’re working on 1960s homes or 1920s beauties like I do, they all need updating.
• Builders Are Moving Into Remodeling: Lower risk, less upfront capital, and constant demand.
• Remodeling Is Less Sensitive to Interest Rates: When mortgages get expensive, new builds stall. But renovations keep moving.

And here’s something I’ve shouted from the rooftops: Homeowners see renovation as an investment, not just an expense. Decorating? It’s a want. Renovation? It’s a need.

Construction Work Has ROI—Decorating Doesn’t

Here’s the clincher: Construction projects are Google-able ROI. Homeowners can literally look up the value-add of a kitchen remodel or a bathroom renovation. (A minor kitchen remodel can return up to 96%! Bathrooms? Around 70%.) Those are hard numbers appraisers and lenders use.

Decorating? No hard ROI. New curtains, custom furniture, rugs? I love them—but there’s no measurable return. And that’s why when things get tight, decorating is the first to go.

Homeowners spend when it hurts or solves a real problem—function, safety, resale value. Construction ticks all those boxes.

Why Designers Are the Missing Link On Renovation Teams

Here’s what so many designers get wrong: You are the bridge between vision, function, aesthetics, and budget on any reno or construction crew. Contractors don’t want to debate grout color for an hour. Architects don’t want to specify hardware. Homeowners get overwhelmed by decisions (and you know this if you’ve ever stood in a fabric showroom with a client!).

As a designer, you are uniquely qualified to communicate, organize, and advocate. And for the record—good contractors want good designers on board. They want clear communicators who keep projects moving and clients on budget.

The Profitability Mistake: Charging Hourly for Construction

Alright, here’s what might ruffle some feathers: Charging hourly for construction is capping your profit. I did it for decades. Switching to a flat fee was a game-changer for my business—and my peace of mind. Even if you stick with hourly, tighten up your scope of work! Your scope isn’t a flowery brochure—it’s a working, living agreement that sets boundaries and protects your time, profit, and sanity.

Strategy Session: What Should You Do in December?

December usually feels slow. Decorating work slows down, clients are busy, contractors and architects aren’t launching new builds. Don’t panic—get strategic. Use this time to:

• Reach out to contractors and architects: Coffee dates, job site walk-throughs, or just connect and ask what their Q1 needs are.
• Loop in realtors: Renovation clients are everywhere and realtors are your allies.
• Review & refine your scopes of work: Make sure they’re ironclad.
• Update your pricing: Consider the shift to flat fees.
• Onboarding materials: Prep now for construction projects in 2026.
• Re-connect with past clients: “Someday” kitchen projects? Nudge them to see if someday has become soon.

Remember, seeds planted now mean a fuller pipeline in January and February.

Wake-Up Call & Invitation for 2026

Let’s be honest: Renovation is the engine of residential construction. It survived the crash of 2008, outperformed in the pandemic, and is still growing. Designers who embrace construction will thrive. If you stick to just decorating, you’ll feel the economic squeeze.

If you’ve ever been scared to try it, remember: Construction isn’t scary. It’s profitable, learnable, and the ultimate way to build loyalty—with your clients and your professional network.

This is your moment to step in, even if it’s just with curiosity and a little chutzpah (and you’ve got plenty of that!). If you need someone to give you permission—take this as it.

Like this Episode?

Be sure to check out Episode #14: The Inside Scoop on Working With Contractors with Matt DiBara

Be sure to check out Episode #69: Why Project Management Proves Successful For An Interior Designer

Be sure to check out Episode #79: Renovation Management Sustains Firms through Slow Times