Tile and Terrazzo Contractors NAICS 238340

Jul 7, 2025 - New Single-Family Home Sales Plummet

• New single-family home sales fell 13.7% month-over-month and were down 6.3% year-over-year in May 2025, according to the US Census Bureau. May’s total new home sales reached 623,000 units. According to Dow Jones estimates, Wall Street analysts had expected May sales to reach 695,000. In recent quarterly reports, some homebuilders said high interest rates and weaker consumer confidence weighed on demand. As sales of new homes remain soft, inventories of unsold homes are increasing. At the end of May, there were 507,000 new homes for sale, up 15% compared to May 2024. The number of unsold new homes in May was the highest since the summer of 2022, after the Federal Reserve began increasing interest rates.
• Sales of existing US homes increased by 0.8% in May from April but were down 0.7% year-over-year, according to the National Association of Realtors (NAR). NAR chief economist Lawrence Yun said, "The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market. Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth. If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs." Existing home sales help drive demand for residential remodeling, including tile and terrazzo work.

• According to the National Association of Home Builders (NAHB) Q1 2025 Remodeling Market Index (RMI) survey, only 56% of remodelers do work that helps homeowners age-in-place (AIP). The Q1 2025 results marked the lowest percentage of remodelers who do AIP work since the NAHB began asking AIP-related questions as part of the RMI in 2004. The NAHB suggests the drop in AIP remodeling work may be a result of increased economic uncertainty and high interest rates. Among respondents to the Q1 RMI survey who did AIP work in the previous 12 months, 87% reported installing grab bars. Other popular types of AIP remodeling projects included curb-less showers (78% of remodelers) and higher toilets (71%). Long-term demand for AIP work is expected to remain strong amid the aging of the US population and housing stocks.
• Demand for building design services improved in May over the prior month, but architectural billings remain soft, according to a June report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 47.2 in May 2025 from April’s reading of 43.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries rose to 51.4 in May compared to 48.0 in April, and the index for the value of new design contracts increased from 43.3 to 45.9. The AIA’s Chief Economist, Kermit Baker said, “Business conditions remained sluggish nationwide in May, with nonresidential construction activity continuing to decline in several major metro areas. Firms across all specializations reported declining billings this month. However, the pace of decline slowed at firms specializing in multifamily residential projects. These, along with institutional work, are likely to be the first to return to growth when conditions begin to improve.”