Concrete & Masonry Contractors NAICS 238110, 238140

May 6, 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. New home sales are a demand indicator for concrete and masonry contracting services.
• Demand for building design services showed signs of stabilizing in March, according to an April report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 49.8 compared to February's reading of 49.3. Any reading of 50 or more indicates growth in architectural billings. March's reading marked the closest the ABI has been to the 50-point growth threshold since early 2023. The score for new project inquiries rose to 56.8 in March from 52.3 in February, but the new design contracts index decreased to 47.8 from 48. The AIA's Chief Economist Richard Branch said, "While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery. These external issues will have a significant impact on the health of construction activity in both the near and long term."

• North American construction and engineering spending is expected to remain flat in 2026 after declining by 1% in 2025, according to FMI’s second-quarter 2026 North American Engineering and Construction Outlook. Within building segments, office construction is projected to grow 6% in 2026, driven by strong data center demand, while health care (+2%) also expands amid large hospital projects. Education, and amusement and recreation are expected to remain stable but notch flat spending growth in 2026. Several segments will decline, including lodging (-4%), commercial (-6%), and public safety (-2%), reflecting financing constraints and uneven demand, while manufacturing construction is also projected to fall (-2%) following a surge in prior years. Residential building activity continues to weaken, with single-family construction forecast to drop 2% due to affordability pressures and elevated mortgage rates. Multifamily spending is projected to be down 1% as high supply levels weigh on rent growth and new development.
• 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.