Framing Contractors NAICS 238130

May 7, 2026 - New Home Sales Rise

• New single-family home sales rose 7.4% month-over-month and were up 3.3% year-over-year in March 2026, according to the US Census Bureau. March’s total new home sales reached an unadjusted 682,000 units. Easing home prices and more selection at the lower end of the market helped some homebuyers cope with continued affordability headwinds, according to the National Association of Home Builders. The median new home sales price was $387,400 in March 2026, down from $412,900 a year earlier. Inventories of unsold new homes are also moving lower. New home inventories totaled 481,000 units in March, down 0.4% from February and 4.6% compared to March 2025.
• US residential construction is weakening in 2026, with single-family spending projected to fall 2% as elevated mortgage rates, affordability constraints, and limited housing turnover weigh on demand, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Builders are sustaining volumes through incentives and smaller homes, but these strategies reduce total spending. Multifamily spending is expected to decline 1% in 2026, though the segment is stabilizing after a sharp downturn in 2024. Apartment starts have begun to recover, signaling improving momentum, but a large pipeline of project deliveries is keeping near-term spending subdued. Vacancy pressures and financing constraints continue to limit new multifamily development, while activity shifts toward adaptive reuse and mixed-income projects.

• Home builders are cutting costs by using cheaper materials, simplifying designs, and reducing features to make homes more affordable amid high prices, mortgage rates, and economic uncertainty, according to The Wall Street Journal. Builders are installing particle-board cabinets, thinner countertops, fewer windows, and lower-end appliances, while shrinking home sizes and standardizing layouts. Some are also offering mortgage-rate buydowns to attract buyers, but homes still often sell for more than $400,000. Buyers face trade-offs between affordability and quality, with some reporting missing or lower-quality finishes. Industry analysts say these changes are spreading as builders prioritize efficiency and profit margins. While companies argue that homes remain durable and accessible to first-time buyers, critics say newer houses feel less customized and lower in quality than older homes.
• US retail construction has fallen to historic lows even as investor demand surges, according to Bisnow. CBRE reported 4.7 million square feet of completions nationwide last quarter, the lowest since CBRE began tracking retail construction completions in 2005. High costs and labor shortages have pressured retail construction. Availability rose 10 basis points to 4.9% in Q1 2026 despite 1.7 million square feet of positive net absorption, as bankruptcies added space back to the market. New development is concentrated in the Sun Belt, led by Phoenix, followed by Dallas, San Antonio, Houston, and Bakersfield, California. Neighborhood and strip centers drove absorption. Meanwhile, institutional investment is accelerating, with major deals and funds targeting retail assets, and US retail property sales volume reaching $66.8 billion in 2025, up 35% year over year.