Roofing and Siding Contractors NAICS 238160, 238170

Jun 17, 2026 - Fitch Downgrades Outlook for Builders, Building Products

• Fitch Ratings revised its 2026 outlooks for the US homebuilding and North America building products sectors to deteriorating from neutral. The agency cited affordability challenges, weak consumer sentiment, and mortgage rates expected to remain near 6.5%. For surveying and mapping services firms, weaker single-family construction activity and slower housing turnover could reduce demand for residential boundary surveys, subdivision planning, site development, and other land-related projects tied to new home construction. Fitch expects new home sales to decline 2.5% and single-family housing starts to fall 4.5% this year, while homebuilders cut prices and offer incentives to attract buyers. Nonresidential construction tied to data centers and power infrastructure is helping offset some residential weakness, creating opportunities for surveying and mapping firms serving those projects.
• Home builder confidence in the single-family market fell in June as builders remain concerned about housing affordability, higher construction costs, and elevated interest rates, according to the National Association of Home Builders (NAHB). Home builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index (HMI), dropped two points to 35 in June 2026. Any HMI reading over 50 indicates that more builders see conditions as good than poor. June marked the 14th consecutive month the HMI remained below 40, a level not seen since the foreclosure crisis of 2011-2012. The survey also showed that 35% of builders reduced home prices in June to lure potential buyers off the sidelines, although the average price reduction of 6% remained unchanged from April. Builders argue that regulatory hurdles - including permitting delays, density limits, and inefficient zoning rules - create bottlenecks that slow new housing growth.

• A new National Bureau of Economic Research study challenges a key Trump administration claim that mass deportations boost jobs and wages for American-born workers, The New York Times Reports. Researchers found that deportation surges between January and October 2025 led to job losses for both undocumented immigrants and American-born workers in agriculture, construction, manufacturing, and wholesale, while wages remained unchanged. Construction was hit hardest, with employment falling 3% among male American-born workers without a college degree and 7.5% among undocumented workers. The study found employers often reduced production rather than raised wages. Industry leaders cited labor shortages, project delays, and rising costs as contributing factors. Researchers and contractors said deportations have worsened existing workforce shortages, particularly in construction, where employers continue to struggle to find qualified replacement workers. Some contractors feel the deportations will pay off eventually by reducing lowball bids by unlicensed competitors.
• Home remodeling spending growth is expected to slow significantly early in 2027, according to the Leading Indicator of Remodeling Activity (LIRA) report released in May by the Joint Center for Housing Studies at Harvard. Homeowner spending on improvements and repairs is expected to increase 1.8% to $516 billion in the second quarter of 2026, compared to Q2 2025. In the third quarter of 2026, remodeling spending will trend slightly upward to $518 billion, up 2.4% from Q3 2025. Spending will then remain flat at $518 billion in Q4 2026, up 1.8% from Q4 2025. In the first quarter of 2027, year-over-year spending is forecast to rise just 0.5% to $523 billion. Remodeling permitting and building product sales have remained flat recently, but homeowners are expected to maintain spending near 2025 levels. Remodeling spending is likely to remain subdued, barring a turnaround in the construction sector.