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.

Aug 23, 2026 - Remodeling Growth to Slow in 2027

• Home remodeling spending growth is expected to slow through mid-2027, according to the Leading Indicator of Remodeling Activity (LIRA) report released in July by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase by 2.1% to $517 billion in the third quarter of 2026, compared with Q3 2025. In the fourth quarter of 2026, remodeling spending will again rise by 2.1% from Q4 2025 to $520 billion. Spending growth will then slow to 0.7% in the first quarter of 2027, reaching $524 billion. In the second quarter of 2027, year-over-year spending is forecast to rise just 0.5%, dropping to a total of $519 billion. Remodeling, permitting, and building product sales have remained flat recently, and remodeling activity growth is projected to remain sluggish absent a rebound in US home sales.
• The National Association of Home Builders (NAHB) reported that California, Texas, and Florida accounted for more than 20% of US remodeling spending in the first quarter of 2026. National remodeling spending totaled $274.7 billion at a seasonally adjusted annual rate, down for the third consecutive quarter. California led with an 8.0% share, followed by Texas at 7.3%, and Florida at 5.5%, with the three states totaling $57.8 billion. Michigan posted the largest increase in remodeling spending on a four-quarter moving average basis, followed by Virginia, North Carolina, and Alabama. Although the 10 states with the strongest gains each recorded year-over-year growth of at least 2.9%, the number of states with declining spending doubled from the previous quarter to 10. NAHB forecasts flat inflation-adjusted remodeling spending for 2026.
• Lowe's cut its full-year outlook as weak housing conditions, consumer uncertainty, and softer discretionary DIY spending continue to pressure results, according to Retail Dive. The retailer now expects $92 billion in annual sales, flat comparable sales, and an 11.2% operating margin, all at the low end of previous guidance. Second-quarter sales rose 8.3% to nearly $26 billion, while comparable sales increased 0.2%, supported by Pro, home services, and online growth. Smaller projects increased 1.5% in the second quarter, but larger, big-ticket projects fell more than 2%, according to research firm GlobalData. Reduced spending on major home projects could limit demand for interior design services, furnishings, finishes, and renovation-related products. Lowe's is expanding its Pro business through loyalty upgrades, digital tools, and acquisitions, while executives expect DIY demand to improve when economic conditions strengthen.
• According to The Wall Street Journal, affluent baby boomers are increasingly buying larger homes or expanding existing ones instead of downsizing in retirement, reflecting changing priorities around aging, family gatherings, and aging in place. Rising home equity and investment gains have enabled many older buyers to finance larger properties with features such as first-floor primary suites, accessible bathrooms, guest quarters, and gourmet kitchens. The trend could create opportunities for the interior design industry as homeowners invest in renovations that combine luxury finishes with aging-in-place features and multigenerational living spaces. Financial advisers also report that retirement planning has shifted from assuming lower housing costs to helping clients afford larger dream homes, although the limited inventory of smaller homes and potential capital gains taxes discourage many boomers from downsizing.

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.