Contractors are cautiously optimistic after the Federal Reserve delivered its third interest-rate cut of 2025, lowering its benchmark rate by another 25 basis points. The move reinforces a gradual easing trend that developers hope will reduce borrowing costs as 2026 approaches. Industry leaders say the cut boosts confidence and supports projects already in planning, but it is not large enough to immediately spur a wave of new nonresidential construction starts. While planning activity dipped slightly in November, it remains significantly higher than last year, suggesting continued momentum even as financing…
Read MoreAuthor: Karla Valdez
When will housing prices drop?
New data from Realtor.com shows the U.S. housing market is cooling, with homes staying on the market longer and prices softening in many areas. In November 2025, the typical home spent 64 days for sale, three days longer than a year earlier and nine days longer than in 2022. Price trends vary by location, but nationally there are clear signs of easing: annual price declines were recorded in 28 of the 50 largest metro areas, while six others saw flat prices. The U.S. Census Bureau reports the median home price…
Read More5 home renovation trends that Interior Designers are ditching in 2026
As 2026 approaches, interior designers are urging homeowners to rethink certain once-popular renovation trends that are now falling out of favor. Experts Jennifer Cataldo, Tennille Burnup and Alyssa Anselmo say flat, builder-grade drywall is being replaced by textured, handcrafted wall finishes like limewash and Venetian plaster, which add warmth and dimension. Waterfall kitchen islands, long seen as a modern luxury statement, are also losing appeal in favor of more custom, inviting designs that mix materials, incorporate furniture-style bases and emphasize subtlety over flash. Light blonde oak is giving way to…
Read MoreWhat’s Hot in Construction and Interior Remodeling
In 2025, homebuilding and remodeling will be shaped by a strong focus on sustainability, smart technology, flexibility and personal comfort. Smart-home features are now expected rather than optional, with AI-driven lighting, climate control, energy management and integrated wiring becoming standard. At the same time, eco-friendly construction leads the market, with solar-ready roofs, energy-efficient windows, low-VOC finishes, high-performance insulation and water-saving systems increasingly built into both new homes and renovations. Natural and reclaimed materials, biophilic design elements and indoor-outdoor connections reflect homeowners’ desire for healthier, nature-connected living environments. Design trends are…
Read MoreSingle-Family Construction Loan Volume Rises in the Third Quarter
Single-family construction lending strengthened in the third quarter, even as the broader real estate lending environment continued to cool. Loans for 1–4 family construction rose to $91.2 billion, the first annual increase in more than two years, showing a small but meaningful uptick in residential building activity. Overall AD&C lending, however, continued its decline for the seventh consecutive quarter, dropping to $463 billion, driven mostly by reduced lending for other types of real estate development. Despite the modest improvement in single-family construction loans, lending levels remain far below historical highs…
Read MoreTile trend that’s set to take over showers and bathrooms in 2026
Bathroom design in 2026 is shifting away from minimalist white tile toward richer, more expressive finishes, with hand-painted tiles emerging as a major trend. Homeowners and designers are gravitating toward options like traditional Delft tiles because they bring pattern, character and a sense of history that modern spaces often lack. Though decorative tiles date back thousands of years—from ancient Egypt to medieval Europe and 18th-century Delftware, their renewed popularity reflects a desire for craftsmanship, imperfection and storytelling in residential design. For builders and remodelers, the appeal is practical as well…
Read More2026 U.S. Labor Market Outlook
New data from HireQuest indicates that the 2026 labor market is moving toward stability after several years of rapid swings in hiring trends. Survey results from more than 400 offices show that time-to-fill rates have largely steadied, job applications remain consistent and employers are leaning more heavily on flexible hiring models like contract and fractional roles. The market is shifting toward skill-based hiring, with companies emphasizing flexibility, job fit and roles that cannot be automated. Trends such as reshoring, easing tariffs and advancements in AI-driven recruiting are also influencing demand,…
Read MoreThe State of the Construction Economy: What to Expect in 2026
The construction industry is heading into 2026 with uncertainty, but also with growing opportunities in reconstruction, adaptive reuse and major technology-driven projects. While high mortgage rates, rising materials costs and labor shortages continue to challenge builders, activity is shifting toward redevelopment of aging buildings and creating new housing through conversions and ADUs. Economists note that trends like office-to-residential conversions and reconstruction work are becoming essential strategies as traditional residential demand softens. At the same time, long-term volatility in interest rates and tariffs continues to influence costs and delay projects, reinforcing…
Read MorePrice Cuts on New Construction as Homebuilder Sentiment Remains Low
Homebuilders are increasingly turning to price cuts and incentives as economic uncertainty continues to weigh on buyer demand. In November, 41% of builders reduced prices, the highest share in five years, while nearly two-thirds used additional incentives such as mortgage-rate buy-downs. Builder confidence remains weak, held back by high inflation, volatile mortgage rates and lingering effects of the prolonged government shutdown, which disrupted key economic data releases. Industry leaders note that even with mortgage rates easing slightly, many buyers remain hesitant due to job-market concerns and broader financial uncertainty. As…
Read MoreFed cuts rates again, though mortgage rates are already down
The Federal Reserve announced another 25-basis-point cut to the federal funds rate on October 29, marking its second consecutive quarter-point reduction this fall. Though the Fed doesn’t directly control mortgage rates, these decisions influence borrowing costs across the economy. Anticipating the move, mortgage lenders had already begun lowering rates throughout October, with 30-year averages nearing 6%, the lowest level in more than three years. Despite this decline, housing demand remains muted, as mortgage applications have continued to fall. The Fed’s latest rate cut reflects its attempt to balance a slowing…
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