The ten remaining designers find themselves on a residential street in suburban Totowa, New Jersey. Host Tanika Ray greets them and reveals that this week is their first Design Challenge with real clients who are two different homeowners with rooms that are not being utilized effectively. The designers have less than three days to give these old rooms a new life. They get straight to work, finding out the needs of the homeowners, Christina, a single woman who often entertains her large extended family, and the Callegaris, a family of six. Then the designers divide into pairs and groups of three to design and execute their transformations on the four rooms. On day two, Mentor David Bromstad arrives to check in with the designers and to oversee their weekly Camera Challenge, where the designers hone their TV skills. Each designer has just one minute to teach the viewer a technique or tip they are using in their design. As they get back to work on their challenge, some of the designers struggle to balance their individual agendas with their needs to collaborate, and tempers flare as they race to complete their rooms. After the Designers exit to return to their Brooklyn Penthouse, the Design Panel arrives to examine the spaces. This week Vern Yip and Genevieve Gorder are joined by guest panelists Bob and Cortney Novogratz, stars of the new HGTV show Home by Novogratz. During the Evaluation, the designers get to see videotape of how their clients reacted to their designs. The panel chooses a winner of the Design Challenge, and the least successful designer is eliminated.