ASID has released its 2023 Economic Outlook Report, which provides a comprehensive analysis of the economy's current state and its impact on the interior design industry.
Following the challenges posed by the pandemic and subsequent recession, the report showcases the resilience and adaptability of designers. This third installment of the Outlook research series equips interior designers with vital economic data and predictions to navigate their businesses through the year.
Key insights from the report cover various sectors, such as employment, trade, housing, hospitality and office spaces, shedding light on trends and potential future shifts. Whether the current economic climate leads to a soft landing or a deep recession, this report empowers practitioners to anticipate and prepare for the changing economic landscape.
A few insights from the ASID Economic Outlook Report:
- The travel and hospitality industries have largely recovered post-COVID. As wages and benefits have increased to attract labor, so have prices for consumers, which they have been willing to pay. Office spaces continue to post high vacancy rates.
- Real spending on furnishings and durable household equipment rose 22 percent in the first quarter of 2023 from its pre-pandemic peak in fourth quarter 2019, much of that increase in the beginning of COVID. From the first quarter of 2021 to the first quarter of 2023, real spending in the category actually declined 3.9 percent.
- High interest rates and a possible recession this year could mean downward pressure on interior design services employment in the remainder of 2023 and into 2024.
- Overall prices for building and design goods remain significantly higher than pre-pandemic levels. The increase has resulted in reduced demand for these items and for interior design services.
- Many people enhanced their home environment during the last several years, reducing the number looking to make major renovations now. Lower numbers of home sales (both new and existing) also mean less business for interior designers. By the second half of 2024, housing sales are expected to have bottomed out and will begin to slowly turn up again, creating a long period of rising demand for interior design services.
To drill down into these insights and more, the ASID Outlook series is available for free as part of your ASID membership. To get the report, click here.