Houzz – 5 business trends set to reshape construction & design in 2026

As the construction and design industry heads into a year defined by tighter margins, rising client expectations and accelerating tech adoption, home renovation and design platform Houzz has identified 5 major business trends poised to shape how trade professionals will work in 2026. 

1 - AI Becomes a Daily Co-Worker, Not a Novelty
Artificial intelligence is quickly shifting from “nice-to-have” to a core part of how construction professionals work day to day. According to the US Houzz State of AI in Construction & Design report, more than a third of trade professionals (34%) already use AI in their businesses, saving on average over 3 hours per week. Two-thirds of professionals (66%) expect AI to transform the industry within 5 years, with adoption highest among larger firms (those with 10 or more employees) that have resources to experiment and train their teams. Industry professionals are using AI to streamline estimating and proposal creation, automate admin tasks, generate marketing materials and improve client communication. Yet most still lack any formal training, highlighting the need for tools that make AI accessible and trustworthy. Rather than adding more complexity, professionals are looking for AI that fits naturally into the systems they already use and can act like an extra set of hands rather than a new workflow to learn. Solutions like Houzz Pro, which integrates AI into everyday workflows for estimating, takeoffs and visualisation, are helping to bridge that gap, turning AI into a reliable teammate that expands a team’s productivity rather than another tool to manage.

2 - Small Teams Get Smarter Through Systems
We hear from the Houzz community that many construction and design professionals feel stretched thin between juggling office tasks, client management and their actual craft. In 2026, that burnout is expected to drive a stronger focus on process improvements, including CRM platforms, project management tools and automation for estimating, scheduling and invoicing. Together, these systems form a solid operational backbone that cuts down back-office burdens and frees professionals to spend more time doing the work they enjoy. These tools don’t just organise the business; they increase a small team’s effective capacity, allowing them to take on more projects without immediately adding staff or compromising quality.

3 - Builders and Designers Reimagine Client Communication as a Competitive Edge
Client communication will become a key differentiator for builders and designers in 2026. According to Houzz’s What Homeowners Want study, over a third of homeowners say their biggest struggle is getting clear and detailed estimates (34%), followed by receiving timely, accurate communication (30%). Once projects begin, transparency becomes even more important: 31% wish they had received better communication overall and 17% say a clear project timeline would have improved their renovation experience. Builders and designers who use software to deliver detailed estimates or proposals, visual previews and real-time updates can turn client anxiety into confidence. The renovation journey now begins long before demolition day, and pros who deliver early, clear, and structured communication will stand out as the most trusted partners. Clear communication can be a core business strategy that can meaningfully improve close rates, client satisfaction and long-term referrals.

4 - Process Discipline Becomes the Antidote to Chaos
As delays, costs, and client expectations continue to rise, builders and designers are strengthening operations with more structure and accountability. Using an all-in-one software platform like Houzz Pro helps ensure that everyone works from the same up-to-date information, reducing costly internal miscommunication and rework. This shift is less about cross-team collaboration and more about internal consistency: creating repeatable, documented processes that protect margins and prevent avoidable mistakes. In 2026, firms that embed disciplined, transparent systems into every stage of a project will experience fewer surprises, smoother workflows and more satisfied clients.

5 - Collaboration Between Trades Tightens Through Tech
Scheduling conflicts, handoffs and cross-company miscommunication remain major pain points, and the data show construction and design professionals are taking action. According to the 2025 Houzz State of the Industry report, 42% of firms planned to invest in improving efficiency and 35% wanted to improve communication. Shared digital platforms and collaboration tools will become essential for keeping trades, suppliers and clients aligned in real time. Teams that integrate their workflows through unified software for task tracking, file sharing and stakeholder updates will move faster, make fewer costly errors, and gain a competitive edge in a tight market.