Site Prep Contractors NAICS 238910

May 20, 2026 - Data Centers Fuel Backlog Growth

• The Associated Builders and Contractors (ABC) Construction Backlog Indicator rose by 0.2 months to 8.8 months in April 2026 compared to March. The infrastructure backlog decreased by 0.2 months to 9.9 months in April, from the month before, and the heavy industrial backlog rose by 2.2 months to 9.1 months over the same period. April’s commercial and institutional construction backlog increased 0.1 months to 8.9 months compared to March. The ABC’s Construction Confidence Index for sales rose to 66.2 in April from 64.7 in March. A Confidence Index sales reading of 50 or more indicates most contractors are optimistic about sales. ABC Chief Economist Anirban Basu said that while April backlogs reached a 10-month high, backlog growth is increasingly concentrated among large contractors working on data centers. Rising backlogs are a demand indicator for future site prep work.
• New single-family home sales rose 7.4% month-over-month and were up 3.3% year-over-year in March 2026, according to the US Census Bureau. March’s total new home sales reached 682,000 units. The National Association of Home Builders noted the uptick was due to moderating home prices and a lack of inventory in the existing home market. In March, the US median home price was $387,400, down 6.2% from $412,900 a year earlier. To address ongoing affordability constraints, builders have made strides toward offering more homes at the lower end of the price spectrum. In March, 20% of new homes were priced below $300,000.

• US single-family homebuilding rose to a 13-month high in March, but economists say the gain may be temporary as permits and builder confidence declined, according to Reuters. Single-family housing starts jumped 9.7% to a 1.032 million annual rate, up 8.9% from a year earlier, while permits fell 3.8% to 895,000 units and dropped 7.9% year over year, according to the US Census Bureau. Rising material and energy costs, along with higher mortgage rates, continue to weigh on housing construction. The average 30-year fixed mortgage rate climbed to 6.23% in late April from 5.98% in late February. Economists expect residential investment to contract for a fifth straight quarter as GDP growth is forecast at 2.3% after slowing sharply in the prior quarter.
• US residential demolition activity saw a slight 0.1% dip in 2025 compared to 2024, but remained steadily above pre-pandemic levels, according to the National Association of Home Builders' analysis of Construction Monitor data. Residential demolition activity is a demand driver for site prep services. Despite a slight slowdown, demolition permits in 2025 were still up 34.2% from 2018. Demolitions tend to be highly concentrated in a handful of states; the top five states accounted for nearly half of all demolition activity in 2025. Florida leads the US with 14.6% of all US residential demolitions in 2025, followed by California (13.3%), New Jersey (10.4%), Texas (7.2%), and New York (4.1%).