Framing Contractors NAICS 238130

Nov 7, 2025 - Homebuilders Cautiously Optimistic

• Home builder confidence in the single-family market improved in October but remained solidly in negative territory, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose five points to 37 in October 2025 compared to September's reading of 32. Any HMI reading over 50 indicates that more builders see conditions as good than poor. October's HMI marked the highest reading since April 2025. Builders are cautiously optimistic as the average for a 30-year fixed-rate mortgage dropped to 6.3%, and the Federal Reserve is expected to ease interest rates further later in the year. However, the housing market remains challenging as many would-be buyers stay on the sidelines waiting for lower mortgage rates.
• North American construction and engineering spending in 2025 is expected to decline 1% after increasing an estimated 6% in 2024, according to FMI’s fourth-quarter 2025 North American Engineering and Construction Outlook. Multifamily construction is expected to decrease by 9% in 2025, amid oversupply in some key markets and weak rent growth. Single-family construction is projected to drop 3% in 2025, as stubbornly high interest rates and elevated home prices reduce demand. Commercial construction spending is forecast to decline by 9% in 2025 as retail store closures surpass openings for the first time in a decade and warehouse vacancies remain high. Lodging construction is expected to decline by 2% in 2025, amid sluggish business travel growth and as financing conditions and maturing debt pose headwinds. High vacancy rates will also keep office construction spending growth to 1% in 2025. Federal funding cuts are projected to result in a 1% decline in educational construction in 2025, while healthcare projects are expected to see a 1% increase in spending.

• On October 14, 2025, the US added new levies on several types of building materials, including 10% tariffs on lumber and wood, according to The New York Times. Industry watchers say the new tariffs will significantly raise construction and renovation costs for U.S. homebuilders. With duties reaching up to 50% on some items by January, builders who rely on foreign materials warn of project delays and increased uncertainty. The National Association of Home Builders estimates that 7% of materials used in new residential construction are imported. Industry leaders fear the added costs will be passed on to consumers, making homeownership and renovations more expensive while slowing new home construction, deepening the housing shortage, and offsetting any relief from falling interest rates.
• In 2024, wood framing continued to account for nearly all of the single-family construction market, according to National Association of Home Builders (NAHB) analysis of US Census Bureau data. Wood framing was used in 94% of single-family home construction completions in 2024. Concrete framing was used in about 5% of homes completed in 2024, while steel framing, which is rare in single-family construction, was used in less than 0.5% of homes. Wood framing increased its market share by 3% in 2024 over 2023. Steel framing, while a tiny portion of the overall market, saw its share increase 33% year-over-year in 2024. The market gains of wood and steel came at the expense of concrete, which saw its share slip from 7% to 5%.