Residential Building Contractors NAICS 2361

Oct 16, 2025 - Fresh Round of Tariffs on Building Materials

• On October 14, 2025, the US began adding a 25% levy on cabinets, vanities, and unupholstered furniture imports, and 10% tariffs on wood floors, 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.
• The average time to complete new multifamily housing projects dropped slightly in 2024 compared to the year before, according to analysis of Census Bureau data by the National Association of Home Builders. From permitting to completion, it took an average of 19.6 months to complete a multifamily project in 2024, down 0.3 months from 2023. While completion times remain lengthy, the drop in project timelines was notable, especially considering chronic shortages of skilled labor. Completions increase with the number of units, and in 2024, buildings with 20 or more units took an average of 22.1 months, while midsize projects with 10-19 units averaged 19.2 months. Multifamily projects with 5-9 units took about 19.1 months, and buildings with 2-4 units averaged 15.3 months.

• Some single-family homebuilders are curtailing production to protect margins. In their recent quarterly reporting, homebuilders KB Homes and Lennar reported lower third-quarter profits as high mortgage rates and economic uncertainty keep buyers on the sidelines, according to The Wall Street Journal. The homebuilding industry is hopeful that lower interest rates will bring in new buyers. Still, some industry observers suggest softness in the US job market could prolong a comeback for the US housing sector. In its third-quarter reporting, KB Homes cut its full-year guidance to $6.1 billion to $6.2 billion, down from its Q2 estimate of $6.3 billion to $6.5 billion.
• The NAHB/Westlake Royal Remodeling Market Index (RMI) reading for the third quarter of 2025 was 60, up one point from the second quarter, according to an October 2025 report by the National Association of Home Builders (NAHB). Any RMI reading over 50 indicates that most remodelers feel market conditions are good. In the third quarter, the Current Conditions Index portion of the RMI rose two points to 68 compared to Q2 2025. The Future Indicators Index component of the RMI increased by one point to 52. While the RMI remained solidly in positive territory in Q2 2025, the NAHB noted that high labor and materials costs and waning consumer confidence continue to pose challenges to the remodeling industry. However, the aging of the US housing stock and rising household net worth support remodeling spending.