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…
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End-of-Year Construction Outlook
As 2025 wraps up, the construction industry continues to wrestle with high costs, labor shortages and policy uncertainty, which have slowed activity across both residential and commercial sectors. While data centers remained a bright spot, most building segments stalled due to elevated interest rates and tariff pressures. Labor conditions also tightened, with retirements and limited immigration keeping the supply of skilled workers low and wages high. Input costs stayed relatively stable in 2025, but trade uncertainty could push them higher in 2026. Despite these challenges, the outlook for 2026 carries…
Read MoreBuilding Material Prices Continued to Rise in September
Residential construction costs continued to climb in September, with overall building material prices rising at their fastest pace since early 2023. The Producer Price Index showed a 0.3% increase in final demand, driven largely by a sharp 3.5% rise in energy prices—the first energy increase in more than a year. Input prices for new residential construction rose 0.2% for the month and 3.1% year-over-year, with building materials up 3.5% from last year as inflation gradually accelerated throughout 2025. Some categories saw dramatic increases, including parts for construction machinery (+41%) and…
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 MoreRemodeling rising to the top of the residential construction market
Remodeling activity including firms and employment is growing in the residential construction market. The National Association of Homebuilders (NAHB) analyzed the quarter-century of Quarterly Census of Employment and Wages (QCEW) data and found that the rise of remodelers is not a a short term trends, but a possible market shift. As the U.S. housing economy is currently unfavorable for middle class homeowners looking for starter or move-up homes. Life still happens to homeowners for example welcoming a child or need for multigenerational living, therefore the demand is there for more…
Read MoreChris Beard presents his insights into the remodeling industry
Chris Beard the Vice President of Building Products Research at John Burns Research and Consulting presents his outlook on the remodeling industry. At an event at at GlassBuild America in Orlando, his advice is a steading tone across the industry. In his opening remarks he acknowledges that this year presented challenges and was, ‘bumpy.’ Despite this and factors of consumer confidence and housing affordability, he expects household formation to increase. He cites those in the 70+ age group who are looking to age in place. This is complemented by those…
Read MoreHomeowners to dip into HELOCS to fund remodels
As whispers across the industry point to a remodeling surge, a new study finds homeowners are more likely to utilize HELOCs to fund these projects. HELOCs or Home Equity Lines Of Credit, are showing more promise as interest rates for homes are slowly dropping. “A single Fed cut won’t thaw the sales market overnight, but it could still act as a powerful catalyst by channeling money into home improvements instead.” said Allaire Conte at Realtor. “That money, in turn, could be a lifeline for the housing market of tomorrow.” A…
Read MoreThe Best-Paying Cities for Construction Workers
The U.S. construction industry in 2025 faces growing uncertainty amid shifting trade policies, high interest rates and stricter immigration enforcement. New tariffs on steel and aluminum have increased material costs, delaying projects and tightening budgets, while labor shortages continue to challenge contractors nationwide. Inflation has further eroded wage gains, and elevated borrowing costs are cooling new development, especially in housing. Despite these pressures, construction workers remain relatively well-paid, earning a median annual wage of $58,360—about 18% above the national median. Wages have climbed 15.4% in the past two years, more…
Read MoreThe best market for residential construction
While construction employment has mainly recovered from pandemic setbacks, wage and permitting trends give insight on which market is the strongest for remodeling and construction business owners and workers. While across the board construction workers report a median annual wage of $58,360. This is about 18% higher than the $49,500 median for all U.S. workers.While looking at the Construction Coverage analysis of BLS & BEA data, Illinois leads with median annual wage of $79,328. This trend stays true across the Midwestern states, Minnesota, North Dakota, Wisconsin and Ohio rank in…
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