Residential Remodelers NAICS 236118

Oct 15, 2025 - Fresh Round of Tariffs on Building Materials

• On October 14, 2025, the US began adding a 25% levy on cabinets, vanities, and unupholstered furniture imports, and 10% tariffs on wood floors, lumber, and wood, according to The New York Times. Industry watchers say the new tariffs will significantly raise construction and renovation costs for U.S. homebuilders. With duties reaching up to 50% on some items by January, builders who rely on foreign materials warn of project delays and increased uncertainty. The National Association of Home Builders estimates that 7% of materials used in new residential construction are imported. Industry leaders fear the added costs will be passed on to consumers, making homeownership and renovations more expensive while slowing new home construction, deepening the housing shortage, and offsetting any relief from falling interest rates.
• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the third quarter of 2025 was 60, up one point from the second quarter, according to an October 2025 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the third quarter, the Current Conditions Index portion of the RMI rose two points to 68 compared to Q2 2025. The Future Indicators Index component of the RMI increased by one point to 52. While the RMI remained solidly in positive territory in Q2 2025, the NAHB noted that high labor and materials costs and waning consumer confidence continue to pose challenges to the remodeling industry. However, the aging of US housing stock and rising household net worth are supportive of remodeling spending.

• Nearly a third of US construction firms have been impacted by intensified immigration enforcement in the last six months, according to a recent report by the Associated General Contractors of America (AGC) and the National Center for Construction Education and Research (NCCER). More stringent enforcement has slowed project delivery and left 88% of firms with craft worker vacancies. One-fifth of construction firms surveyed reported that subcontractors had lost workers, 10% reported increases in absenteeism due to actual or rumored enforcement actions, and 5% said jobsites had been visited by immigration agents. Only 10% of firms use visa programs like H-2B due to approval challenges, leaving many vulnerable to enforcement actions. Industry leaders are urging Congress to increase funding for career and technical education and to create a construction-specific visa program to stabilize the workforce and support long-term growth.
• So far in 2025, small investors are playing an outsized role in the U.S. single-family housing market, according to The Wall Street Journal. In the first half of 2025, small investors accounted for about 25% of home purchases, outpacing large institutional buyers, according to property analytics firm Cotality. While traditional home buyers remain sidelined by high home prices and interest rates, small investors are capitalizing on seller incentives. Unlike large firms constrained by institutional reporting, smaller investors can take greater risks and are increasingly targeting mid-priced homes to renovate and rent. An uptick in the percentage of homes sold to small investors could boost demand for residential remodeling as investors buy and fix up homes for flipping or renting.