Interior Design Services NAICS 541410

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Industry Summary
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.
Recent Developments
Aug 19, 2025 - Homeownership Hits Multi-Year Low
- Renters were the sole driver of the rise in household formations in the second quarter of 2025, according to the Census Bureau’s most recent Housing Vacancy Survey (HVS) and the National Association of Home Builders (NAHB). In Q2 2025, the total number of US households increased to 132.5 million, up by 1.2 million compared to 131.3 million in the second quarter of 2024. The increase in new households was entirely driven by renters, amid the lowest homeownership rate since 2019. US homeownership fell to 65% of total households in Q2 2025 and was 4.2 percentage points below the 25-year average of 66.3%. High home prices, elevated mortgage rates, and low inventories have pushed housing affordability to the lowest level in decades. Homeownership is a demand driver for interior design services.
- About two-thirds of office users plan to increase their square footage over the next three years, according to CBRE’s 2025 Americas Office Occupier Sentiment Survey. One-third of firms surveyed said they plan to reduce their office footprints over the next three years. However, company size tends to dictate the likelihood of expanding or contracting office use. In 2025, 95% of smaller firms planned to increase their office usage, compared to just 85% in 2024. About 60% of companies with 10,000 employees or more said they plan to reduce square footage over the next three years. Industry insiders suggest that firms seeking to reduce expenses are doing so by rightsizing their office occupancy, not by downgrading to lower-quality space. The gradual recovery of the office market could boost demand for interior design services.
- The number of building permits issued for single-family, privately-owned housing units increased 0.5% month-over-month but fell 7.9% year-over-year in July 2025. Single-family housing starts grew by 2.8% month-over-month and increased 7.8% year-over-year in July. Homebuilding and planning activity improved in July despite continued high interest rates and economic uncertainty, according to Reuters. The Federal Reserve has held back on interest rate cuts amid concerns that the Trump administration’s tariff policies could reignite inflation. However, recent signals of emerging softness in the labor market have many investors anticipating that the Fed will announce a quarter percentage point cut to interest rates at its meeting in September, which helped ease mortgage rates in August.
- Home remodeling spending growth is expected to remain flat in 2025 and the first half of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 2% to $509 billion in the third quarter of 2025 compared to Q3 2024. In the fourth quarter of 2025, remodeling spending will rise quarter-over-quarter to $511 billion, up 1.8% from Q4 2024. Spending will increase to $524 billion in Q1 2026, up 2.2% from Q1 2025. In the second quarter of 2026, year-over-year spending is forecast to rise 1.2% to $518 billion. Joint Center expects a weak housing market to put downward pressure on remodeling spending. However, recent federal cuts to incentives for efficiency improvements may spur short-term growth as homeowners make upgrades before benefits expire at the end of the year.
Industry Revenue
Interior Design Services

Industry Structure
Industry size & Structure
The average interior design service provider operates out of a single location, employs 4 workers, and generates about $1.2 million annually.
- The interior design services industry consists of about 16,100 companies that employ about 58,000 workers and generate $19.3 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.
Industry Forecast
Industry Forecast
Interior Design Services Industry Growth

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