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…
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2026 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 MoreNine major housing markets see price declines in August
U.S. home prices rose just 1.5% in August compared to a year earlier, marking the slowest pace of growth since 2023, according to the S&P CoreLogic Case-Shiller Home Price Index. This slowdown, down from July’s 1.7% increase, signals that the post-pandemic housing boom continues to lose momentum. In fact, nine of the 20 major metro areas tracked saw year-over-year price declines, and for the fourth consecutive month, home values failed to keep up with inflation. With inflation rising 2.9% during the same period, homeowners effectively lost purchasing power, while potential…
Read MoreThe Ongoing Strength in Luxury Remodel Segment
Due to the ongoing government shutdown, much of the key federal economic data used by businesses to make informed decisions, such as housing statistics from the U.S. Census Bureau, has been temporarily unavailable. As a result, analysts are relying on private reports, such as the Institute for Luxury Home Marketing’s data, to assess current market trends. This report focuses on North American luxury homes, defined by price relative to income in specific regions. For instance, luxury homes range from about $784,000 in Philadelphia to over $2.2 million in Boulder, Colorado.…
Read MoreRemodeling expects steady growth into next year
Home renovation and maintenance spending is expected to stay steady through late 2025 and into mid-2026, according to the Leading Indicator of Remodeling Activity (LIRA). The forecast predicts a 2.4% year-over-year increase in early 2026, followed by a slight slowdown to 1.9% growth by the third quarter. This stability reflects consistent activity in remodeling permits and single-family home sales, which are keeping homeowner improvement demand strong. Total remodeling expenditures are projected to reach a record $524 billion by early 2026, underscoring the sector’s resilience despite broader market fluctuations. Looking ahead,…
Read MoreBuilding envelope market size
In 2024, the North America building envelope market size was valued at 35.24 billion. By 2034 growth is projected to reach 60.63 billion by 2034. This reflects a compound annual growth rate (CAGR) of 5.58% from 2025 to 2034. High-performing envelopes are the most effective way to reduce the thermal needs of buildings.For both home builders and remodelers, building with high performance in mind is shifting from a luxury to a standard. Top products in the market include insulation materials, cladding systems and roofing systems. According to Precedence Research, “North…
Read MoreLuxury Home Remodeling: Top Trends and 2025-2026 Guide
Luxury home remodeling in 2025–2026 is redefining what it means to live well, blending sophistication with sustainability, technology and wellness. Homeowners are prioritizing eco-friendly materials like bamboo, recycled metals and low-VOC finishes while integrating energy-efficient systems, water-saving fixtures and solar technologies. Smart home features—such as AI-driven climate control, biometric security and centralized automation hubs—are now the new symbols of luxury. At the same time, design is becoming more personal and wellness-focused, with spaces that promote relaxation and mental clarity through spa-inspired bathrooms, yoga studios, natural light and indoor greenery. Customization…
Read MoreHow construction companies can solve the workforce shortage
The construction industry faces a growing labor shortage that’s expected to intensify over the next two years. An estimated 439,000 additional workers will be needed in 2025—and nearly 500,000 in 2026—as construction spending rises. This shortfall threatens to slow project timelines, raise costs, and compromise safety and quality. The industry’s long-term health depends on attracting new talent, especially younger workers and career changers and investing in their training and mentorship. Building proficiency in the trades takes time, making early and sustained investment in workforce development essential. The shortage is most…
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