Asphalt Product Manufacturers NAICS 324121, 324122

Jun 3, 2025 - Residential “Missing Middle” Construction Sees Gains

• So-called “missing middle” medium-density housing, which includes duplexes, townhouses, and other smaller multifamily properties, has gained in popularity over the last several quarters, according to the National Association of Home Builders. Multifamily properties in the missing middle (2 to 4 units) have generally been out of favor since the Great Recession, but they are experiencing a resurgence. In the first quarter of 2025, there were 5,000 construction starts for housing properties with 2 to 4 units, which was flat compared to a year earlier. However, over the past four quarters, the number of missing middle residential construction units reached 23,000, marking a 53% increase over the four quarters before that period. The missing middle segment’s gains may be limited absent zoning reform that allows for increased density.
• The total value of construction starts decreased by 9% in April compared to March, according to Dodge Construction Network. Nonbuilding construction starts dropped 22%, as utility starts fell 70% and highway and bridge starts were down 8%. Residential starts fell 4.2% month-over-month in April; single-family starts dropped 5%, while multifamily starts were down by 3%. Nonresidential building starts fell 3% in April, as a 2% rise in institutional starts and a 78% jump in manufacturing projects were not enough to offset a 21% decline in commercial starts. Dodge Construction Network chief economist Eric Gaus said, “Broad-based monthly declines in construction starts represent a troubling signal for the sector. While not definitive, the slowdown in April aligns with delays in the planning pipeline and other economic data that capture the volatility and uncertainty of all the April tariff announcements. Uncertainty around trade policy and the economy’s direction will continue to weigh on construction activity in the coming months.”

• The number of building permits issued for single-family, privately-owned housing units decreased 5.1% in April 2025 compared to March and fell 6.2% year-over-year. Single-family housing starts dropped by 1.6% month-over-month and were down 12% compared to April 2024. Single-family housing completions declined 5.9% in April from the previous month and decreased 12.3% year-over-year. Housing starts in April were pressured by tariff-related economic uncertainty, high mortgage rates, and rising costs for building materials, according to the National Association of Home Builders (NAHB).
• US spending for highway and street construction in 2025 is expected to grow by about 3%, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook. While funding from the Infrastructure Investment & Jobs Act (IIJA) for programmed highway projects is scheduled to expire in fiscal 2026, FMI believes non-infrastructure dollars may go unspent and be relocated for highway and other transportation projects. Highway and street spending is forecast to rise 2% in 2026, 3% in 2027, 4% in 2028, and 4% in 2029.