Concrete & Masonry Contractors NAICS 238110, 238140

Jun 6, 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.
• In late May, Immigration and Customs Enforcement (ICE) officers raided three construction jobsites in New Orleans; San Antonio, Texas; and Tallahassee, Florida, according to Construction Dive. Some industry insiders told Construction Dive that increased jobsite immigration enforcement could disrupt project schedules and worsen the construction industry’s labor shortage. The Associated General Contractors of America (AGC) has been advising its members to expect an increase in jobsite enforcement, as it has estimated it would take about five months for the Trump administration to organize and ramp up enforcement. The Associated Builders and Contractors (ABC) trade group has suggested that its members ensure their workers are authorized to work in the US. The Trump administration claims that increased immigration enforcement is necessary to ensure national security and protect jobs for workers who can work in the US legally. The ABC says that for 20 years, it has called on Congress to pass a market-based merit visa program to allow more foreign workers to be employed in the US.

• 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).
• North American construction and engineering spending in 2025 is expected to grow by 3% after increasing an estimated 7% in 2024, according to FMI’s second-quarter 2025 North American Engineering and Construction Outlook. Nonresidential building construction spending is forecast to be flat in 2025 as growth in amusement and recreation (+7%), transportation (+3%), public safety (+3%), and educational (+3%) is offset by weakness in commercial (-7%), lodging (-5%), and manufacturing (-1%). Amid high mortgage interest rates and a lack of affordability, single-family construction spending is forecast to rise by 3% in 2025. A recent jump in new apartment supply and unfavorable cost conditions will reduce multifamily spending by 12% in 2025.