Interior Design Services NAICS 541410

Jun 23, 2026 - Permitting Logjams Could Slow Remodeling Activity

• According to The New York Post, an analysis from the Common Sense Institute found that permitting requirements in Arizona add an average of 23 days to residential project timelines, raising concerns about the impact of local bureaucracy on essential home repairs. The report reviewed 2.8 million permit records and found wide variations in approval times, fees, and requirements across jurisdictions. The findings come as the US housing stock ages, with the median owner-occupied home now 42 years old, according to the National Association of Home Builders. Nearly 49 million households report at least one needed repair. Researchers and housing experts say much of today’s remodeling spending is focused on critical systems such as roofs, windows, and HVAC units rather than cosmetic upgrades. The report suggests permitting delays can increase costs and make it harder to maintain safe, livable housing.
• Sales of existing US homes increased by 3.2% in May 2026 from April and were up 3.2% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy. Improving affordability is helping drive this momentum. Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average. Income gains are also outpacing home price growth by a small margin in most parts of the country." Home sales help drive demand for interior design, as consumers often refresh their interiors after buying or before selling a home.

• According to a recent Pro Remodeler survey, rising costs continue to affect remodeling and home improvement projects. Remodeling project types that have seen the biggest cost increases include bathrooms (68% of respondents), kitchens (67%), and whole-house remodels (56%). Other projects that have seen significant cost increases include window and door replacement (44% of respondents), decks (33%), siding replacement (30%), and handyman services (26%). The survey found that 55% of respondents reported a decline in project volume, 24% reported an increase, and 22% reported no change. To manage higher expenses, 54% of those surveyed said they selectively raise prices by project, 41% reduce project scope, 31% absorb some costs, 29% raise prices across the board, and 29% offer lower-cost material options. Remodelers say homeowners are responding by scaling back projects (63% of those surveyed), delaying work (57%), completing projects in phases (38%), or canceling projects altogether (28%).
• Home remodeling spending growth is expected to slow significantly early in 2027, according to the Leading Indicator of Remodeling Activity (LIRA) report released in May by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase 1.8% to $516 billion in the second quarter of 2026, compared to Q2 2025. In the third quarter of 2026, remodeling spending will trend slightly upward to $518 billion, up 2.4% from Q3 2025. Spending will then remain flat at $518 billion in Q4 2026, up 1.8% from Q4 2025. In the first quarter of 2027, year-over-year spending is forecast to rise just 0.5% to $523 billion. Remodeling permitting and building product sales have remained flat recently, but homeowners are expected to maintain spending near 2025 levels. Remodeling spending is likely to remain subdued, barring a turnaround in the construction sector.