2024 Interior Design Business Survey Highlights & What The Results Mean for Designers
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0Summary
The 2024 Interior Design Business Survey paints a nuanced portrait of an industry in flux but not in free fall. While demand has cooled from the pandemic-era surge, designers are recalibrating—revisiting fees, streamlining staffing, and expanding service offerings. Top pain points include setting profitable rates, managing vendor relationships, and attracting ideal clients. Yet across the board, designers are optimistic about the future, with a focus on holistic compensation, tech integration, and inclusive, purpose-driven design.
Reflection Questions
How aligned is my pricing strategy with the profitability I actually want to achieve?
(Am I setting rates based on competition—or based on what my business needs to thrive?)
Am I cultivating the kind of vendor and client relationships that will sustain me in slow seasons?
(What systems do I have in place to reinforce trust and repeat business?)
What’s one area of my business I need to restructure now to prepare for where I want to be in 3 years?
(Team, services, operations, client mix—what’s holding me back from scaling with purpose?)
Journal Prompt
“If my design firm were a client, what kind of transformation would it need right now?”
Explore your business through the lens of design: What needs editing? What’s working beautifully? Where is it out of alignment with your vision? Write about one shift—big or small—you’re ready to make.
If you’ve felt the industry shifting under your feet, you’re not alone—and you’re not imagining things. The 2024 Interior Design Business Survey presents—in our opinion—the clearest snapshot yet of what’s happening behind closed studio doors. The findings are both a gut check and a growth guide, from rising costs to cautious optimism, from salary trends to succession planning.
While this survey is certainly a collection of stats, it’s also a temperature reading on the design profession itself. Here’s what every designer should take away from the data, what trends to watch, and where the industry is heading next.
2024 Interior Design Business Survey Findings
Presented by Pearl Collective, Interior Talent, and Business of Home
A Post-Pandemic Hangover—But Not a Crisis
Remember the tidal wave of projects that hit in 2020? That wave has receded. The majority of firms—especially residential—have seen a slowdown in new inquiries and billings. Nearly half of firm owners reported completing 10 or fewer projects in the past year. Still, 47% expect revenues to increase in 2024.
Designers are scrappy. They’re saying yes to smaller projects, adjusting staffing models, and doubling down on client relationships. They’re also not sitting still—they’re reevaluating pricing structures, overhauling service offerings, and leaning into flexible fee models.
What this means for you: If your phone isn’t ringing off the hook like it used to, you’re in good company. Focus on retention, marketing, and streamlining your operations for leaner times. Resilience is the new luxury.
An Ongoing Puzzle Over Pricing and Profitability
The most commonly cited business challenge? Fees and markups. Whether charging hourly, fixed, or hybrid, designers are still wrestling with how to confidently price their value.
The report found that:
- 57% of owners charge hourly + markup
- 34% use a fixed fee + markup model
- Only 9% pursue alternative pricing strategies
Designers who unapologetically communicate their fees tend to get less pushback and see better profits. The key is confidence, clarity, and aligning pricing with real profitability—not with what peers are charging.
What this means for you: Don’t be afraid to raise your rates—especially if you’re undercharging for premium services. Start with a financial model based on your goals, not just industry averages. You deserve to be paid for your expertise, not just your hours.
Smart Hiring Over Speedy Growth
In 2024, hiring is intentional—not reactive. Firms are increasingly investing in junior designers and design assistants (28% of new hires), while others are making strategic senior hires that can bring $250,000+ in additional revenue.
The most competitive firms are also top-grading—replacing underperformers with high-caliber talent. That includes embracing remote roles, relying on recruiters, and prioritizing cultural fit just as much as portfolios.
What this means for you: Whether you’re hiring or seeking work, clarity is everything. Know what role you’re filling, what ROI you expect, and what kind of team dynamic you’re building.
Rebuilding Trust in the Designer-Manufacturer Relationship
This year’s survey shined a spotlight on a quietly growing tension in the industry: the frayed relationship between designers and manufacturers. Nearly half of design firms cited delays, damaged products, and inconsistent communication as serious pain points—and the frustration is mutual.
Manufacturers are essential partners in delivering the quality and consistency that luxury clients expect. But when communication breaks down, the ripple effects hit designers hardest: missed deadlines, damaged trust, and time-consuming resolution work.
How to strengthen your vendor relationships:
- Vet vendors like team members. Request samples, review service records, and ask about fulfillment policies up front.
- Negotiate realistic lead times. Build in buffers and set client expectations early, especially for custom or international orders.
- Track issue resolution. Keep records of how often and how quickly a vendor resolves problems. Over time, this becomes invaluable data.
- Ask for support. Don’t hesitate to request a dedicated rep, expedited service, or trade incentives—especially if you’re a repeat client.
What this means for you: Treat your manufacturer relationships like strategic partnerships. A reliable vendor isn’t just a logistics win—it’s a brand asset.
Salaries, Benefits, and the New Value Proposition
Inflation and talent shortages are rewriting compensation models. Salary ranges vary dramatically by region, role, and firm size—but non-monetary benefits are playing a bigger role in attracting and retaining talent.
Owners in high-cost regions can earn over $250K, while many in lower-cost areas still take home less than $75K. Firms offering benefits like PTO, healthcare, and professional development report higher retention. Increasingly common commission-based structures reflects a pivot to performance-based incentives.
What this means for you: If you’re building a team, think beyond salaries. Flexibility, mentorship, and clear paths for advancement are the new currency. If you’re job-seeking, don’t just chase the paycheck—evaluate total value.
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The Unspoken Urgency of Succession Planning
Here’s a sobering stat: nearly 70% of respondents do not have a succession plan. And yet, by 2030, all baby boomers will be 65 or older. The time to plan is not when you’re ready to retire—it’s now.
Firms that have successfully transitioned ownership did so through early planning (5+ years out), clean books and strong contracts, clear cultural values and leadership development, and legal and financial support.
What this means for you: Whether you’re a firm owner or aspiring successor, treat succession like a design project. Map it out, identify your goals, and invest in the right structure before the transition becomes urgent.
Investing in Complex Client Relationships
The most successful firms aren’t just designing spaces—they’re cultivating lifelong clients. From personalized birthday cards to post-project maintenance support, top designers are investing in meaningful relationships.
Social media is also driving project pipelines: over 80% of some firms’ clients come from Instagram or Pinterest. Engagement—not just aesthetics—is fueling conversion.
What this means for you: Stop thinking in terms of projects and start thinking in terms of partnerships. That’s where long-term sustainability—and referrals—come from.
Exploring New Models, New Offerings
Some firms are diversifying revenue through à la carte offerings: paint consults, “designer for a day,” and finish packages for contractors. These flexible services create new entry points for clients and help designers stay nimble.
What this means for you: If your full-service model isn’t booking as quickly, consider microservices. Think of it as a product ecosystem. Can a 90-minute design consult lead to a full project next year?
Looking Forward: Hope, Strategy, and Sustainability
Despite challenges, the mood is cautiously optimistic. Residential design demand is expected to pick up in 2025, and many designers are diversifying into hospitality, senior living, and real estate development. Sustainability, inclusivity, and flexible space planning are also shaping future trends.
Designers are also beginning to dip their toes into AI—for marketing, business operations, and even early-stage design.
What this means for you: The future isn’t solely about reacting to what’s thrown at you. Focus on redefining. Use the insights from this survey as a guide. Benchmark your business. Adjust your plan. Lead with clarity. Join a Community that works for you and helps you weather any storms.
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