Drywall and Insulation Contractors NAICS 238310

Apr 9, 2026 - US Homes Reach Record Age of 44 Years

• The aging of the US housing stock is likely to support continued remodeling spending, including work on drywall and insulation. The median age of US homes has reached a record 44 years, driving up maintenance and modernization costs as aging properties require major repairs, according to Harvard researchers and The Wall Street Journal. Much of the housing stock dates to building booms in the 1920s, postwar years, and 1970s, and has not been replaced by new construction. Experts now recommend homeowners budget 2% to 3% of a home’s value annually for upkeep, rather than the traditional 1%. Aging homes also raise insurance risks, limit resale options, and increase financial strain, especially as nearly half of renovation spending now goes to essential replacements.
• The home building industry is increasingly reliant on immigrant labor, including drywall and ceiling installers, according to the National Association of Home Builders' analysis of recently released Census Bureau data. In 2024, immigrants' share of the US construction workforce reached a record high of 26.3%, but was much higher in several trades essential to the home building industry. In 2024, immigrants made up 57% of the drywall and ceiling installer workforce. However, drywall and ceiling installation contractors reported fewer labor shortages compared to other skilled trades with lower percentages of immigrant workers, including carpenters, plumbers, and HVAC contractors.

• The total value of private US construction put in place dropped by 0.6% in January 2026 compared to the prior month, according to the US Census Bureau. Residential spending fell 0.8%, as multifamily spending dropped 0.7% and single-family construction spending declined 0.2%. Nonresidential spending decreased 0.4%. Only four subsegments of the nonresidential building sector saw growth in January compared to December 2025: office (+1.1%), healthcare (+0.4%), communication (+0.2%), and lodging (+0.1%). The remaining nonresidential building categories posted flat or negative growth in January 2026, including commercial (-0.1% from December), educational (-1.1%), religious (-1.1%), amusement and recreation (-0.9%), transportation (-0.2%), manufacturing (-2%), and power (0%).
• US construction spending on drywall and insulation materials is expected to be mixed in 2026 as the residential market continues to face headwinds, according to FMI's most recent Building Products Market Overview report. Nonresidential drywall and insulation spending are expected to grow by 3.1% and 2.6%, respectively, in 2026. However, residential drywall spending is forecast to decline by 1.5%, and insulation spending will drop 1.6%. While single-family construction has improved, activity remains well below the recent pandemic peak. Residential drywall demand is being helped by remodeling activity amid the aging of the US housing stock. Combined residential and nonresidential spending on drywall is forecast to grow at a 2.5% CAGR through 2029. Over the same period, combined spending for insulation materials will have a CAGR of 2.3%.