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: Economy
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 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 MoreConstruction Jobs Growth Hides Underlying Turmoil
Construction job growth has slowed sharply in 2025, averaging just over 5,000 new jobs per month from March to May—down significantly from late 2024. Residential sub-trades have been hit hardest, losing 22,000 jobs and shrinking the workforce by 2% since September 2024. Despite the slowdown, construction workers continue to earn a 24% weekly pay premium over the private sector, driven by higher hourly wages and longer work hours. Read MoreÂ
Read MoreBusiness Roundtable Launches New Workforce Initiative
The Business Roundtable has launched a Skilled Trades Initiative to address U.S. labor shortages by promoting careers in high-demand fields like construction, manufacturing, maintenance and energy. Spearheaded by CEOs such as Marvin Ellison (Lowe’s) and David Gitlin (Carrier), the program partners with companies, experts and nonprofits to create resources, training, and tools aimed at strengthening the industrial and construction workforce. Read More
Read MoreThe Fed Pause Continues
The Federal Reserve maintained its current interest rate range of 4.25% to 4.5%, continuing its pause on rate cuts despite earlier reductions in late 2024. Chair Jerome Powell emphasized the Fed’s commitment to reducing inflation and achieving full employment, noting that persistent shelter inflation and ongoing housing affordability challenges—exacerbated by high construction costs—are key concerns. While economic activity remains solid and unemployment is low, the Fed slightly downgraded its 2025 GDP growth forecast and raised its inflation outlook, citing tariff uncertainty as a potential contributor to elevated inflation through the…
Read MoreHome Improvement Market Growth Revised Downward
The home improvement market’s growth forecast for 2025 has been lowered to 3.4%, down from an earlier projection of 5%, due to rising material costs, new tariffs and labor shortages. Economic pressures, including high tariffs on imported materials and a sluggish housing market affected by high mortgage rates, are contributing to slower activity. While existing home sales are expected to gradually recover, new housing starts may remain stagnant or decline slightly. 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 MoreAging-in-Place Remodeling Work Fell
In the first quarter of 2025, only 56% of professional remodelers reported undertaking projects designed to allow homeowners to age in place (AIP), which marked the lowest percentage since the National Association of Home Builders (NAHB) began tracking this data in 2004. This decline is due to economic uncertainties, high interest rates, and stock market volatility, which have dampened consumer spending and investment in home modifications. However, awareness of AIP concepts remains high, 98% of remodelers noting that most or some of their clients are familiar with AIP. According to…
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