A landmark study released by the Home Builders Institute (HBI) and National Association of Home Builders (NAHB) reveals the skilled labor shortage is costing the residential construction industry $10.8 billion annually and preventing the construction of approximately 19,000 single-family homes.
For the first quarter of 2025, single-family construction growth registered modest gains in small metro areas and declines in large metro counties, while apartment growth is shifting to counties with lower population densities.
The narrow price gap between new and existing homes results from tight inventory in the existing market, where homeowners with low pandemic-era mortgage rates are hesitant to sell due to high current rates, combined with post-pandemic price surges across both segments, driven by rising construction costs and supply shortages.
New home sales jumped 10.9% in April to 743,000 units despite high interest rates and construction costs. Home builders call it an anomaly, with 61% now offering sales incentives. Year-to-date sales still down 1.2% as industry faces ongoing economic uncertainty.
The typical home purchased in America reached a record median age of 36 years in 2024, nine years older than in 2012, according to Redfin. A construction shortage since 2008's financial crisis forces buyers into older properties, with Buffalo homes averaging 69 years old versus just six years in Provo.
Lowe's strengthens position in homebuilder market through strategic $1.325 billion acquisition of ADG, a nationwide provider of interior surface finishing services with $1.8 billion in annual revenue and 3,200+ specialized installers serving residential construction professionals.
Growing economic uncertainty stemming from tariff concerns and elevated building material costs kept builder sentiment in negative territory in April, despite a modest bump in confidence likely due to a slight retreat in mortgage interest rates in recent weeks.
While America's neighborhoods have become seas of pristine white houses designed for maximum resale value, a colorful rebellion is happening right under our feet. Manufacturers are increasingly offering bolder, more vibrant flooring options that challenge the notion that our homes must sacrifice personality for investment potential.
BuildDirect expands its Pro Center network with the acquisition of Orlando-based Anchor Flooring and Yorkshore Sales, strengthening its distribution capabilities in the southeastern U.S. and enhancing services for professional contractors.
Building professionals can expect modest single-family housing growth this year as regulatory reforms and tax cut extensions counterbalance potential tariff and immigration challenges.
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