Hardware, Plumbing & HVAC Distributors NAICS 4237

Mar 24, 2026 - Nonresidential Building Starts Increase

• The total value of nonresidential building construction starts increased 17.6% in February 2026 from January, according to Dodge Construction Network. Driven by strong office and data center activity, commercial starts jumped 48.5%. However, other commercial construction segments saw declines in starts, including parking garages (down 23.1%), warehouses (-12.1%), hotels (-7.9%), and stores (-4.7%). Led by educational projects, institutional starts increased 8.7%, despite a significant decline in healthcare starts. Dodge’s associate director of forecasting Sarah Martin said, "After a weak start to the year, nonresidential and residential building starts steadily rebounded throughout February. Conversely, nonbuilding activity slowed down last month – normalizing from elevated levels in January."
• Home builder confidence in the single-family market rose slightly in March, but builders remain concerned about housing affordability, higher construction costs, and shortages of buildable lots and labor, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), rose one point to 38 in March 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. The HMI survey also showed that 37% of builders reduced home prices in March to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from February. While the war in Iran and resulting higher oil prices could pose additional challenges, recent executive orders by President Trump aimed at reducing regulatory hurdles to homebuilding are seen as a positive step.

• The New York Times reports that Americans are expected to spend a record $522 billion on home renovations in 2026, driven by high mortgage rates, aging housing stock, and shifting homeowner preferences, according to the Harvard Joint Center for Housing Studies. Elevated borrowing costs are prompting many homeowners to stay in place and invest in upgrades rather than move, while multigenerational living is increasing demand for modifications. Younger homeowners are playing a growing role, with millennials spending about $14,199 per household on improvements, the highest among generations, according to Angi. In a recent survey by online renovations platform Houzz. 41% of homeowners renovate due to dissatisfaction with existing styles, reflecting a focus on personalization. Industry data indicates functional upgrades, such as exterior repairs and system replacements, often deliver the highest returns, though lifestyle-driven renovations continue to gain popularity.
• Home improvement loan activity remains elevated compared with pre-pandemic levels, though demand has cooled from its 2022 peak, according to NAHB analysis of recently released Home Mortgage Disclosure Act (HMDA) data. Applications rose from 1.15 million in 2019 to 1.49 million in 2022, then declined to 1.20 million in 2024, reflecting moderating renovation activity amid higher interest rates. At the same time, the borrower profile is shifting older. Applicants age 65 and older increased their share from 17.8% in 2019 to 18.6% in 2024, driven in part by aging-in-place renovations and long-term homeownership. Younger cohorts also posted modest gains, including those ages 35 to 44, whose share rose to 22.9%. The data suggest sustained remodeling demand, supported by limited housing inventory and aging homes, even as overall loan activity stabilizes below recent highs.