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.

Jul 23, 2026 - Remodeling Index Remains Positive

• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the second quarter of 2026 was 61, down one point from the first quarter, according to a July 2026 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the second quarter, the Current Conditions Index portion of the RMI remained unchanged at 70 compared to Q1 2026. The Future Indicators Index component of the RMI declined by two points to 52. The NAHB noted that the lock-in effect of high mortgage rates may incentivize existing homeowners to renovate rather than move, but that inflation may prompt some projects to be postponed, especially larger ones.
• 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.
• The US housing market remained steady in June as sellers adjusted expectations and buyers continued to make purchases despite mortgage rates near 6.5%, according to Realtor.com. Asking prices fell 2.5% year over year, the largest decline in Realtor.com data since 2017, while pending sales rose for a seventh straight month, new listings increased 2.4%, and homes spent a median of 53 days on the market, matching last year and pre-pandemic norms. The report also highlighted growing regional differences, with prices weakening in the South and West but remaining above 2022 peaks in the Midwest and Northeast. These trends could affect the interior design industry, as buyers often refresh home designs before moving in, and sellers may update interiors before listing their homes.
• 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.

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.