Home Depot is acquiring specialty building products distributor GMS for $4.3 billion in equity, as part of its ongoing strategy to expand in the professional building materials sector. This follows its $18 billion purchase of SRS Distribution last year, further strengthening its ability to serve residential and commercial contractors. The deal positions Home Depot to compete more aggressively by creating a massive supply network with over 1,200 locations and 8,000 delivery trucks. Read More
Read MoreCategory: Building News
Demand for new construction is quickly weakening
After years of resilience, homebuilders are now grappling with a sharp slowdown in the housing market as high prices, mortgage rates and economic uncertainty dampen buyer demand. New home sales fell 14% in May, and many builders, including Lennar and KB Home, are cutting prices and scaling back development plans amid rising unsold inventory. Despite increased supply from both new and existing homes, sales remain sluggish in most markets. According to Yahoo Finance, “Consumers grew increasingly apprehensive about the economy and rising geopolitical tensions, driving consumer confidence to a 13-year…
Read MoreFive ways to prevent budget overruns in construction projects
Budget overruns in construction often stem from inaccurate estimates due to outdated or overly optimistic assumptions about labor, materials, timelines and external factors like weather. Experts from Procore and Autodesk stress the importance of early risk assessments and thorough preconstruction planning to catch potential issues and build realistic contingency plans. Leveraging project management technology can help contractors identify problems sooner and make informed decisions to stay on track and avoid costly delays. Read More
Read MoreMay home sales rates weigh on housing market
Existing U.S. home sales inched up 0.8% in May to an annual rate of 4.03 million, but it was still the slowest May since 2009 due to high mortgage rates and rising prices. The national median home price hit a record $422,800 for the month, up 1.3% year-over-year, though price growth is slowing. Persistent mortgage rates near 7% continue to limit affordability, holding back both buyers and sellers despite a growing number of homes on the market. Read More
Read MoreLos Angeles, CA Housing Market
In May 2025, the median home sale price in Los Angeles reached approximately $1.055 million—a modest 0.5% increase from a year ago—while homes sold more slowly, taking about 45 days on average compared to 39 days last year. Sales volume dipped about 7% year-over-year, with 1,617 homes sold compared to 1,738 the previous year. Market competitiveness remains moderate, featuring an average of three offers per home and a sale-to-list price of 99.8%, though conditions are easing slightly from peak demand. Read More
Read MoreProducer Prices Rise in May: New Construction Input Analysis
Prices for inputs to new residential construction rose 0.2% in May after a slight decline in April, with building materials increasing 0.1% month-over-month and 2.5% year-over-year. While energy input costs rose slightly in May, they remain nearly 10% lower than a year ago. Overall, input prices for residential construction are up 1.9% from May 2024, driven by modest increases in both goods and services. Read More
Read MoreRemodeling Impact
In 2024, U.S. homeowners spent an estimated $603 billion on remodeling projects, driven by factors such as aging homes, high mortgage rates, and a desire to enhance comfort. The National Association of REALTORS® (NAR) reports that projects like adding a primary bedroom suite, upgrading the kitchen, and installing new roofing received perfect “Joy Scores” of 10, indicating high homeowner satisfaction. According to the National Association of Realtors, “Housing affordability and the rise in mortgage rates have been pondered to be a motivating factor to remodel one’s home.” Read More …
Read MoreHomeowners spend on renovations despite the uncertain economy
Despite broader economic uncertainty, U.S. homeowners are continuing to invest in home renovations. Sales at building materials and garden supply retailers rose 0.8% in April from March, marking the largest gain since 2022. However, the cost of home repairs and remodeling climbed nearly 4% in the first quarter from a year earlier, primarily due to rising labor costs. According to the Trumbull Times, “Home Depot said Tuesday that it doesn’t expect to raise prices because of tariffs, saying it has spent years diversifying the sources for the goods on its…
Read MoreResidential Construction Job Growth Plateaus Short
In April 2025, the U.S. construction sector added 11,000 jobs, with residential construction contributing 3,400 positions, according to the Bureau of Labor Statistics. Despite this growth, homebuilder hiring has remained nearly flat over the past year due to factors such as high mortgage rates, rising home prices, and material costs impacting buyer demand. The unemployment rate for construction workers increased to 5.2% on a seasonally adjusted basis. Since 2010, residential construction employment has gained approximately 1.4 million jobs, though it has not yet returned to the peak levels seen during…
Read MoreFraming Lumber Prices
Since May 9, 2025, the framing lumber composite price has fallen to $454 per 1,000 board feet. Softwood lumber prices have been affected due to rising tariffs, an increase in demand, and insufficient domestic production. The NAHB plans to negotiate a long-term deal with Canada to reduce tariffs, increase domestic production, and seek new markets for trading in order for lumber production to start blooming once again. According to NAHB, “Surveys conducted by Home Innovation Research Labs show that the average new single-family home uses more than 2,200 square feet…
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