Sydney Architecture and Interior Design Market Update - Oct 2026

October 2026 | People By Design | Jamie Keay - Director

A patchy market and a more cautious approach to hiring.

The past six months have been an interesting and, at times, challenging period for Sydney’s Architecture and Interior Design markets. While there is still good work happening across the industry, activity has been up and down, with some studios busy and looking to grow, while others are experiencing quieter periods, project delays and therefore a more cautious approach to recruitment.

The word that was used to describe the market to me by one client, that I feel sums it up well, was… “Lumpy”

Confidence remains fragile, and the broader economic environment is influencing decisions at every level. Higher interest rates, ongoing geopolitical conflict, rising fuel prices and cost-of-living pressures are all contributing to the uncertainty. For clients, developers and homeowners alike, committing to projects is becoming a more considered decision.

From a recruitment perspective, this is translating into a market where hiring is still happening, but studios are being more selective about when they recruit, which roles they prioritise and the experience they need within their teams.

Architecture: Multi-unit residential continues to provide opportunities

Within the architectural market, multi-unit residential remains an important source of work and opportunity. Sydney’s ongoing need for housing continues to support activity in this sector, with studios involved in apartment developments, mixed-use projects and higher-density residential work, well positioned to access opportunities.

However, a strong underlying need for housing does not automatically translate into a consistent flow of projects. Development feasibility remains under pressure from construction costs, the cost of finance, approval processes and the challenges of getting projects from planning into construction.

For architectural practices, this creates a mixed picture. Some studios continue to have a solid pipeline of residential work, while others are waiting for projects to progress before looking at their staffing requirements, until there is greater certainty.

The result is a market where experience in design development, documentation and project delivery remains valuable. Studios need people who can contribute effectively, coordinate with consultants and help move projects forward.

For candidates, there are still opportunities, but finding the right role can take longer. Studios are often looking for a close match between a candidate’s experience and their immediate project requirements.

In my personal experience this type of market can cause an uptick in the number of contract positions available. Candidates still need to be a close fit for an open position for practices to consider them but the lack of confidence in workflow beyond 3-6 months, is leading some clients to ‘hedge their bets’ and offer a shorter-term role.

Interior Design: A noticeable slowdown in high-end residential

The Interior Design market has experienced a different set of challenges, particularly at the higher end of the residential sector.

High-end residential projects are often closely linked to discretionary spending, property market confidence and homeowners’ willingness to commit substantial sums to renovations, new homes and bespoke interiors. When uncertainty increases, these decisions can be scaled back or put on hold altogether.

This softer sentiment is consistent with broader conditions in Sydney’s prestige property market. CBRE’s third-quarter 2026 research reported softer demand across many prestige residential markets, while ABC News reported in September that Sydney’s high-end housing market had experienced a notable decline in values from previous peaks. These indicators do not measure interior design commissions directly, but they help explain the more cautious environment surrounding residential projects.

This does not mean the high-end interiors market has disappeared. There will always be clients who continue to invest in quality design. However, the market is more selective, and the timing of projects is less predictable.

Within the Workplace, Hospitality, Retail and Commercial sectors, we have seen a steady flow of new job opportunities. However, clients are increasingly focused on attracting candidates with relevant local project experience and are not looking outside of their strict parameters.

What is currently influencing confidence?

·       Interest rates and the cost of finance

·       Ongoing global conflict and geopolitical uncertainty

·       Fuel prices and rising operating , labour and material costs

·       The flow-on effect on confidence

Recruitment: A more considered approach to hiring

For both Architecture and Interior Design practices, the current environment is encouraging a more measured approach to recruitment.

Rather than recruiting ahead of anticipated growth, some studios are concentrating on immediate project needs, replacing key team members or hiring people who can make a meaningful contribution from day one. Others are holding off until project approvals, client commitments or workloads become clearer.

This means recruitment processes can take longer, expectations are more specific, and the fit between a candidate and a studio is increasingly important.

For candidates, the market can feel a little frustrating. There are good people looking for their next opportunity and it can take time to land the right role. Being clear about project experience, technical strengths and the value you can bring to a team is more important than ever.

For employers, access to the right talent remains important. When the right person becomes available, it is worth considering the longer-term value they could bring, even in a market where immediate workloads may fluctuate.

Looking ahead:

The Sydney Architecture and Interior Design markets are not standing still, but neither are they moving forward at a consistent pace. Opportunities remain, particularly in areas supported by ongoing apartment demand, established project pipelines and studios with a healthy mix of work.

At the same time, uncertainty around interest rates, global events, fuel prices and project feasibility is likely to remain an important consideration for businesses and clients.

The key is to recognise that the market is not the same for every studio, sector or individual. Some practices are busy and recruiting, while others are navigating quieter periods and making careful decisions about their next steps.

For me, the current market reinforces the importance of staying connected, sharing honest market feedback and taking a considered approach to both hiring and career decisions.

At People By Design, I work closely with Architecture and Interior Design studios and candidates across Sydney, helping both sides navigate changing market conditions and make the right connections.

If you are planning your next hire, considering a career move or simply want to discuss what I am seeing across the market, I would love to hear from you!

Jamie Keay
People By Design | Architecture + Interior Design Recruitment