Interior Design Services

The 16,100 interior design firms in the US plan, design, and administer projects in interior spaces to meet the physical and aesthetic needs of customers. Revenue comes primarily from design services and product sales. Companies may specialize in a particular sector (hospitality, health care, institutional, residential), room (kitchens, bathrooms, closets), or style (contemporary, traditional).

Demand Driven By Construction Trends

Interior design services are often tied to new construction and remodeling projects.

Design Driven By Trends And Fads

The interior design market is often driven by styles and trends in the fashion world.

Oct 23, 2026 - Home Improvement Forecast Highlights Diverging Demand

• The outlook for professional and consumer home improvement spending has diverged, according to the Home Improvement Research Institute (HIRI). Its latest forecast projects 2.5% growth in total US home improvement product sales in 2026, slightly below the previous estimate. Consumer sales are expected to increase 3.4%, while professional sales are projected to rise 1.3%. However, after adjusting for inflation, HIRI expects both segments to contract in real terms. The forecast also identifies weak demand for some major household appliances and kitchen and bathroom cabinets. The outlook suggests that customers may remain selective about discretionary renovation spending and expensive design upgrades. Designers could benefit from offering phased projects, cost-conscious material alternatives, and services that emphasize extending the usefulness of existing furnishings.
• High borrowing costs and housing affordability concerns continue to complicate household decisions about buying and improving homes, according to The New York Times. Mortgage rates and home prices influence the financial trade-offs between purchasing another property and renovating an existing residence. Homeowners who are reluctant to surrender favorable mortgage terms may prefer improvements that make their current properties more functional or attractive. This dynamic could support design demand for kitchen and bathroom updates, home offices, storage improvements, and redesigns of existing living spaces. However, economic uncertainty and high financing costs may also discourage expensive discretionary projects.
• Custom furniture has become increasingly expensive and difficult to obtain on predictable schedules, according to The Wall Street Journal. Rising labor costs, tariffs, and shipping delays have contributed to higher prices and longer delivery times for made-to-order furnishings. These challenges can complicate projects for affluent homeowners seeking specialized pieces and distinctive interiors. Higher furniture costs may require designers to prepare more detailed budgets, make purchasing decisions earlier, and communicate more with clients about project timelines. Designers could also face pressure to identify alternative suppliers, modify specifications, or incorporate ready-made and vintage furnishings when custom products exceed customers' budgets. Firms that can manage procurement difficulties and offer attractive substitutions may strengthen their competitive position while protecting project profitability.
• US spending on home improvements and repairs is expected to remain relatively flat through late 2027, according to Harvard's Joint Center for Housing Studies. The center's latest Leading Indicator of Remodeling Activity (LIRA) projects year-over-year growth in renovation and repair spending of just 1.5% by the third quarter of 2027. Annual spending is expected to hover around $525 billion through that period. Retail spending on building products has been flat or declining, while remodeling permits have stagnated, signaling continued weakness in renovation activity. Declining housing starts and persistent softness in the broader housing market could further constrain remodeling expenditures. Sluggish remodeling activity could reduce demand for interior design services, particularly for kitchen, bathroom, and whole-home renovations. Budget-conscious homeowners may postpone major projects, prioritize smaller cosmetic improvements, or select less expensive furnishings and finishes, potentially squeezing interior designers' revenues and profit margins.

Industry size & Structure

The average interior design service provider operates out of a single location, employs 4 workers, and generates about $1.3 million annually.

• The interior design services industry consists of about 16,100 companies that employ about 67,000 workers and generate $21.1 billion annually.
• The industry is highly fragmented; the top 50 firms account for 11% of industry sales.
• Large companies that offer interior design as part of a portfolio of services include Gensler, HOK, and Perkins+Will. The majority of firms are small, independent companies with localized operations.