Concrete & Masonry Contractors NAICS 238110, 238140

Sep 4, 2025 - New Home Sales Drop

• New single-family home sales fell 0.6% month-over-month and were down 8.2% year-over-year in July 2025, according to the US Census Bureau. July’s total new home sales reached 652,000 units. However, home sales beat analysts’ outlook; economists polled by Reuters had expected July sales to reach only 630,000 units. The Chairman of the Federal Reserve has hinted at a possible rate cut during the central bank’s meeting in September. However, Fed rate policy will likely depend heavily on August employment and inflation data due in September. High mortgage rates continue to outpace wage growth, keeping home purchases out of reach for many would-be buyers. Some industry watchers expect new home sales to remain under pressure from interest rates through the end of the year.
• In the second quarter of 2025, there were about 12,000 single-family built-for-rent (SFBFR) housing starts in the US, down 52% from the same period in 2024, according to National Association of Home Builders analysis of US Census Bureau data. During the four most recent quarters, 71,000 SFBFR homes began construction, down 16% compared to how many were built in the previous four-quarter period. While the historical four-quarter moving average market share for SFBFR is about 2.7% (1992-2012), SFBFR’s current share of the overall single-family market is about 7%. Single-family built-for-rent homes provide an alternative for consumers who want more space but are challenged by a lack of affordable housing inventory and downpayment requirements in the for-sale market. However, SFBFR housing starts have slowed as high financing costs have reduced development activity.

• The total value of nonresidential construction put in place declined by 0.2% in July 2025 compared to June, according to the US Census Bureau. Spending on nonresidential building projects was mixed in June. Growth was led by a 0.9% uptick in lodging spending, followed by healthcare (0.5%), transportation (0.4%), and public safety (0.1%). Spending on office, educational, and communication projects was flat in July, month-over-month. Manufacturing construction spending fell 0.7% in July, and commercial projects saw a 0.8% drop. Associated Builders and Contractors (ABC) Chief Economist Anirban Basu said, “Nonresidential construction spending fell for a third consecutive month in July and is now down 2.5% from the December 2023 record high. Of course, that’s in nominal terms. With construction materials prices rising rapidly in recent months and set to continue as higher tariff rates go into effect, the recent decline in construction activity is even larger than this data series suggests.”
• Home remodeling spending growth is expected to remain flat in 2025 and the first half of 2026, according to the Leading Indicator of Remodeling Activity (LIRA) report by the Joint Center for Housing Studies at Harvard. Homeowner improvements and repairs are expected to increase 2% to $509 billion in the third quarter of 2025 compared to Q3 2024. In the fourth quarter of 2025, remodeling spending will rise quarter-over-quarter to $511 billion, up 1.8% from Q4 2024. Spending will increase to $524 billion in Q1 2026, up 2.2% from Q1 2025. In the second quarter of 2026, year-over-year spending is forecast to rise 1.2% to $518 billion. Joint Center expects a weak housing market to put downward pressure on remodeling spending. However, recent federal cuts to incentives for efficiency improvements may spur short-term growth as homeowners make upgrades before benefits expire at the end of the year.