Flooring Contractors

The 18,100 flooring contractors in the US install resilient floor tile, carpeting, linoleum, and hardwood flooring. Single-family homes and office buildings account for the majority of sales. Other sources of revenue include apartment buildings; health care and institutional buildings; retail establishments; and educational buildings.

Dependence on General Contractors

Flooring contractors often work with general contractors (GC), which act as a gateway to construction jobs, especially large projects.

Vulnerability to Trends in the Construction Market

The flooring industry and demand for installation services are vulnerable to trends in the construction market, which is cyclical and influenced by economic factors.

Aug 14, 2026 - Weaker Growth for Residential Remodeling

• Home remodeling spending growth is expected to slow through mid-2027, according to the Leading Indicator of Remodeling Activity (LIRA) report released in July by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase by 2.1% to $517 billion in the third quarter of 2026, compared with Q3 2025. In the fourth quarter of 2026, remodeling spending will again rise by 2.1% from Q4 2025 to $520 billion. Spending growth will then slow to 0.7% in the first quarter of 2027, reaching $524 billion. In the second quarter of 2027, year-over-year spending is forecast to rise just 0.5%, dropping to a total of $519 billion. Remodeling, permitting, and building product sales have remained flat recently, and remodeling activity growth is projected to remain sluggish absent a rebound in US home sales.
• The New York Times reports that the 21st Century ROAD to Housing Act, the largest federal housing initiative in a generation, seeks to increase the US housing supply but is unlikely to ease affordability pressures quickly. The bipartisan law encourages faster permitting, denser development, expanded use of federal housing funds, and fewer barriers to manufactured and modular construction, while recognizing that state and local governments retain significant control over zoning and development. It also supports growth in build-to-rent communities and eases rules that have raised manufactured housing costs. For flooring contractors, increased housing construction could create additional installation and renovation opportunities over time. However, limited federal funding, local regulations, interest rates, and lengthy development timelines could restrain near-term construction growth.
• US construction and engineering spending is expected to decline 1% in 2026 after remaining flat in 2025, according to FMI's third-quarter 2026 North American Engineering and Construction Outlook. Office construction is projected to grow 2%, with a 21% increase in data center spending offsetting continued weakness in traditional office construction. Amusement and recreation (+2%), transportation (+1%), and communication (+3%) also remain stable. Several building segments are expected to decline, including lodging (-9%), commercial (-5%), health care (-0.2%), education (-1%), and public safety (-4%). Manufacturing construction is forecast to fall 17% as semiconductor fabs and battery plants move beyond their most spending-intensive phases. Residential construction remains constrained by elevated mortgage rates and affordability pressures. Single-family spending is projected to drop 4%, while multifamily spending declines 1% as rents remain soft and concessions limit new development. Residential improvements are expected to rise by 5%, supported by home equity financing and inflation in renovation costs.
• Multifamily developer confidence weakened in the second quarter of 2026, according to the National Association of Home Builders’ (NAHB) latest Multifamily Market Survey. The Multifamily Production Index (MPI) dropped three points to 43 compared to the second quarter of 2025. The Multifamily Occupancy Index (MOI) decreased by 8 points to 74 over the same period. An MPI or MOI reading of 50 or more indicates that multifamily production or occupancy, respectively, is growing. Multifamily developers’ headwinds include volatility in building materials costs, high interest rates, and regulatory difficulties. While the NAHB expects the recently enacted 21st Century ROAD to Housing Act to help alleviate some building industry challenges, the law's policies will take time to implement.

Industry size & Structure

The average flooring contractor operates out of a single location, employs about 5 workers, and generates $1.4 million annually.

• The flooring contracting industry consists of about 18,100 establishments that employ about 81,800 workers and generate $25.4 billion annually.
• Most firms are small, independent businesses that served a limited geographical area. The largest firms, such as Redi Carpet, Bonitz Flooring Group, and Spectra Contract Flooring, operate regionally.
• Large flooring retailers include LL Flooring, Empire Today, and Floor & Décor. Retailers typically refer customers to third-party flooring installers.