The 2025 ASID Trends Outlook Report confirms what most designers are already feeling: Things are rocky out there! But rocky doesn’t have to mean hopeless. While challenges like rising material costs and inflation persist, there’s room to maneuver and even grow, if you know where to look. This week, Interior Design 411 breaks down what you need to know from the report and what you can start doing differently right now.
1. Stop Waiting, Start Planning
If you’ve been hoping material prices will drop back to pre-pandemic levels, it’s time to move on. The report notes tariffs could drive material costs up another 5–8%, while furniture prices remain 25% above 2020 levels. Inflation is seriously impacting client budgets and decision timelines.
What to do:
- Source smarter. Now is the perfect time to build relationships with local fabricators and explore vetted secondhand markets, circular economy platforms, and refurbishment services with warranty-backed manufacturers. Think RESEAT, Steelcase restoration programs, or direct-from-manufacturer take-back initiatives.
- Communicate early with clients about potential pricing and lead time impacts to avoid project friction later. For more tips, read 5 Ways to Tariff-Proof Your Design Contracts.
2. Look for Opportunity in New Sectors
While consumer demand for design services is flat, sectors like build-to-rent, adaptive reuse, and senior living are seeing increased development. Office vacancy rates are slowly improving, opening renovation and office-to-residential conversion opportunities as organizations adjust to hybrid work models.
What to do:
- Diversify your project types. If you’ve relied heavily on single-family residential or new commercial builds, consider multifamily, senior living, or adaptive reuse[KL3] .
- Connect with developers and municipalities exploring suburban conversions or office upcycles. These projects often have shorter timelines and lower budgets but can create consistent workflow and portfolio diversification.
3. Invest in People
The multigenerational workforce highlighted in the ASID Trends Outlook points to a change in how firms are managing design talent. Younger designers expect collaboration, mentorship, and alternative education pathways. Meanwhile, senior designers bring deep technical and project management skills.
What to do:
- Foster a culture of cross-generational mentorship to retain talent.
- Invest in trend forecasting and digital fluency to keep your teams agile.
- Use slower periods to upskill your staff through programs like IIDA’s Certified Design Futurist or digital modeling certifications.
4. Lean Into Neuro-Inclusivity, Outdoor Integration, and Joyful Spaces
Clients are seeking spaces that evoke joy and support mental well-being, particularly as uncertainty remains a backdrop in daily life. Neuro-inclusive design, outdoor connectivity, and integrating AI-driven smart technologies are becoming expectations.
What to do:
- Position yourself as a consultant who can align these needs with realistic budgets, especially for clients in healthcare, education, or hospitality.
- Test and document case studies within smaller projects to build a portfolio demonstrating how these elements can be integrated meaningfully.
5. Use the Slowdown To Level Up
The ASID report emphasizes that despite the economic slowdown, now is the time to build a solid strategic foundation. Designers that get creative, manage costs smartly, and develop resilient operational practices will emerge stronger when the market rebounds.
What to do:
- Review your vendor and sourcing strategy for resilience and agility.
- Refresh your business plan to account for build-to-rent and adaptive reuse market shifts.
- Invest in process automation tools that can save your team time and reduce errors, such as integrated project management and material tracking software.
The 2025 ASID Outlook is a call to adapt and diversify. Inflation, tariffs, and high interest rates will continue to test the market, but opportunities are present in sectors ripe and ready for design innovation. The design stars that will thrive are those taking proactive steps now to diversify their project types, upskill teams, and refine sourcing strategies.
Don’t let uncertain demand freeze your business. Use this period to strengthen your foundation, position your services within growth sectors, and build the agility that the next market upswing will reward. To purchase and download your version of the full report, visit the ASID website.
SOURCES: ASID, Window and Door, Furniture World, I+S
