WASHINGTON, DC -- The American Society of Interior Designers (ASID) announced the release of the 2025 Economic Outlook Report sponsored by Sherwin-Williams. This report delves into the current state of the economy, equipping interior designers and the industry across all sectors with a strategic analysis of how today’s uncertain economic environment is reshaping demand for interior design services.

New additions to this year’s report include:

1. Expanded coverage of tariffs and trade-related inflation and their impact on materials and product pricing.

2. Insights into stalled infrastructure and healthcare construction due to shifting federal policy.

3. Analysis of employment and wage trends specific to interior designers, offering guidance for workforce planning.

4. Spotlight on growth sectors such as build-to-rent housing, adaptive reuse and senior living.

Key insights from the report explore the economic impact on employment, trade, recession, hospitality, the workplace and more:

1. Construction labor shortages remain widespread, with immigration restrictions expected to further tighten the labor market.

2. Office vacancy rates are improving modestly as more organizations implement return-to-office policies, but new construction remains limited. Renovation and office-to-residential conversions offer new potential for interior designers.

3. Federal funding for healthcare construction is on hold, leaving state and local governments to fill gaps — resulting in slower growth and fewer short-term design opportunities in this sector.

4. Many hotels and motels are due for renovation, but economic uncertainty and high costs are slowing activity. However, conversions of outdated hotels into housing are gaining traction.

5. High home prices and interest rates continue to dampen demand for single-family housing, but build-to-rent and senior living communities are seeing increased development activity.

6. The retail sector remains under pressure, yet interior design opportunities persist in restaurant renovation and adaptive reuse of malls into mixed-use developments.

The 2025 report also includes sector-specific outlooks for education, entertainment, multifamily housing, senior housing and home improvements. While the baseline forecast avoids a full recession, the probability of slower growth remains high, with tariff-driven inflation, labor costs and interest rates weighing on construction activity and capital investment. The full report is available for free to ASID members and offered for purchase to all others ($150) at www.asid.org.