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The U.S. Bureau of Labor Statistics (BLS) projects that the economy will add 5.9 million jobs from 2025 to 2035, with total employment1 increasing from 170.3 million to 176.2 million, a gain of 3.5%. This represents slower growth than the 10.9% recorded over the 2015-2025 decade. If employment growth were distributed evenly over the next decade, the projections would imply an average net gain of approximately 49,000 jobs per month.

Employment growth is expected to vary considerably across major industry sectors over the 2025–2035 decade. Utilities are projected to record the fastest growth rate, at 9.8%, driven largely by rising electricity demand, including demand associated with artificial intelligence (AI). However, given its relatively small employment base, the sector is projected to add just 58,800 jobs. The private healthcare and social assistance sector is expected to add more than 2.2 million jobs, accounting for approximately 37% of the total projected employment gain, as the population ages and demand for healthcare services increases. Professional, scientific, and technical services are projected to grow by 8.6%, adding 926,700 jobs, supported in part by demand for AI-related systems, research and development, and consulting services. In contrast, employment in federal government and retail trade is projected to decline.

Against this broader employment outlook, construction is projected to grow faster than the overall U.S. labor market. This analysis examines construction employment, with a particular focus on residential building construction and specialty trade contractors2, to identify the occupations expected to add the most jobs, grow the fastest, or experience employment declines.

1. Construction Industry Employment Outlook

Employment in the U.S. construction industry is projected to increase from approximately 8.27 million jobs in 2025 to 8.68 million in 2035, adding 410,700 jobs, or 5.0%. This growth exceeds the projected 3.5% increase in total U.S. employment, suggesting that construction will expand faster than the overall labor market over the next decade.

Within the construction industry, two segments are particularly relevant to residential construction:

Residential building construction is projected to add 34,200 jobs, representing 3.7% growth.

Specialty trade contractors are projected to add 270,600 jobs, representing 5.2% growth.

Together, these two segments account for approximately 74% of construction’s projected net employment gain. Specialty trade contractors are expected to contribute the largest share of the increase, reflecting their substantial role in electrical work, plumbing, heating and air conditioning, roofing, and other specialized construction activities.

However, specialty trade contractors serve both residential and nonresidential projects. Their projected employment growth therefore reflects demand across the broader construction market, rather than residential construction alone. Examining both segments provides complementary perspectives on employment trends relevant to residential construction while preserving this important distinction.

2. Occupational Employment Growth Projections

While industry-level projections indicate the overall pace of employment growth, occupational projections provide a more detailed picture of potential job gains and shifts in the composition of the construction workforce.

Residential Building Construction: Occupations with the Largest Projected Gains

Within residential building construction, projected employment gains are concentrated in occupations that support on-site construction, project coordination, and supervision.

Construction laborers are projected to record the largest gain, adding 13,900 jobs from 2025 to 2035, followed by carpenters, with an increase of 8,100 jobs. Construction managers are expected to add 5,100 jobs, while first-line supervisors of construction trades and extraction workers are expected to gain 2,800 jobs. Project management specialists round out these leading occupations, with a projected increase of 1,700 jobs.

These projections highlight the continued importance of hands-on construction occupations, alongside management and supervisory roles. The expected gains span several stages of residential building activity, from on-site labor and carpentry to project oversight and coordination.

Specialty Trade Contractors: Strong Demand Across Major Trades

Projected employment gains are considerably larger across several occupations within specialty trade contractors.

Electricians are expected to record the largest increase, adding 65,700 jobs between 2025 and 2035. Heating, air conditioning, and refrigeration mechanics and installers are projected to gain 40,900 jobs, followed by construction laborers, with an increase of 34,800 jobs. Plumbers, pipefitters, and steamfitters are projected to add 27,900 jobs.

Supervisory and management occupations are also expected to contribute to employment growth. First-line supervisors of construction trades and extraction workers are projected to gain 17,300 jobs, while construction managers are expected to add 11,200 jobs.

These projections highlight the importance of skilled trades in the broader construction workforce. Because specialty trade contractors serve both residential and nonresidential projects, these gains reflect employment trends across the broader construction market.

Taken together, the two industry groups show that workforce growth will extend beyond general construction labor to include skilled trades, supervision, and project management.

Occupations with the Fastest and Slowest Projected Growth Rates

While the number of additional jobs highlights where employment gains will be concentrated, percentage changes provide a complementary perspective by showing which occupations are expected to expand or contract most rapidly relative to their existing employment levels.

Within specialty trade contractors, solar photovoltaic installers are projected to grow by 35.5% from 2025 to 2035, followed by occupational health and safety specialists (+22.4%) and technicians (+19.7%). In residential building construction, data scientists are projected to grow by 30.0%, although the increase represents fewer than 100 jobs. These examples illustrate how rapid percentage growth may translate into relatively few additional jobs.

Conversely, several administrative occupations are projected to decline. In residential building construction, office clerks, secretaries and administrative assistants, and bookkeeping, accounting, and auditing clerks are each projected to decrease by 6.4%. Among specialty trade contractors, office clerks are projected to decline by 9,200 jobs (5.2%), while bookkeeping and accounting clerks and secretaries and administrative assistants are also expected to decrease. Selected craft occupations, including helpers of brickmasons, blockmasons, stonemasons, and tile and marble setters, are projected to decline by 13.5%.

Overall, the projections reveal considerable variation across occupations, with some expanding rapidly while others face declining employment.

Conclusion

Construction employment is projected to grow faster than total U.S. employment from 2025 to 2035, with specialty trade contractors accounting for much of the industry’s net job gain. Construction laborers and carpenters are expected to lead gains in residential building construction, while electricians, HVAC mechanics and installers, construction laborers, and plumbers are projected to add the most jobs among specialty trade contractors. Solar photovoltaic installers stand out for their rapid projected growth, while several administrative and selected craft occupations are expected to decline. Together, these trends highlight the varied workforce demands facing the construction industry over the next decade.

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This article was originally published by a eyeonhousing.org . Read the Original article here. .


Private residential construction spending rose in August 2026 following a series of declines during the second quarter of the year. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $882.3 billion in August, up 1.1% from July but down 4.8% from a year ago.

The increase in spending occurred across all residential sectors, with improvement (remodeling) spending posting the largest monthly gain at 2.5%. Over the year, however, remodeling spending was down 7.4%. Both spending on single-family and multifamily construction increased by 0.2% in August, but decreased 3.5% and 0.6% from a year ago, respectively. The decline in single-family construction spending is consistent with weak builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI), amid rising interest rates and cost.

The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024.

In contrast, improvement spending has been on an upward trend since 2023, supported in part by the aging housing stock and sustained demand for renovation. However, the latest data is consistent with a 2026 soft patch for remodeling.

Private nonresidential construction spending continued its upward trend. August’s spending rose 1.0% to a SAAR of $773.0 billion, although it remained 1.0% below the previous year. Data center construction, a subcategory within office construction, remained strong with spending increasing 7.5% month-over-month and 73.2% year-over-year, due to buildout of artificial intelligence infrastructure. The share of data centers as a percentage of spending on total private nonresidential construction surpassed 10% in July 2026.



This article was originally published by a eyeonhousing.org . Read the Original article here. .


Strong multifamily growth pushed overall housing starts higher in June, while single-family production remained sluggish as elevated mortgage rates, rising construction costs and persistent labor shortages continued to weigh on the market.

Overall housing starts increased 19.0% in June to a seasonally adjusted annual rate of 1.43 million units, according to a report from the U.S. Department of Housing and Urban Development (HUD) and the U.S. Census Bureau. This pace reflects the number of housing units builders would begin over the next 12 months if June’s activity were sustained.

Within the total, single-family starts decreased 0.2% to an 895,000 seasonally adjusted annual rate and were down 3.2% compared to June 2025. On a year-to-date basis, single-family starts are down 5.3%. Given recent volatility, the three-month moving average provides a clearer signal, falling to 902,000 units.

Multifamily starts, which include apartment buildings and condominiums, rose 76.2% from May to June to an annualized 532,000 pace. The three-month moving average for multifamily construction has trended higher to 445,000 units, and activity is 17.2% higher compared to year-earlier levels.

Regionally, on a year-to-date basis, combined single-family and multifamily starts were 4.5% higher in the Northeast, 1.7% higher in the South, 1.2% higher in the Midwest, and 4.4% lower in the West. Single-family starts were down in all four regions.

The total number of housing units under construction stood at 1.26 million in June, down 6.2% from a year earlier. Single-family homes under construction stood at 582,000 units, a 6.9% year-over-year decline. Multifamily units under construction slowed down to 682,000, down from peaks above 1 million units in December 2023 and 5.7% lower than a year ago.

Completions of single-family homes have improved to an annual rate of about 964,000 units. This marks a 5.5% increase from a year earlier. However, multifamily completions for buildings with five or more units were down 5.1% year over year to a 413,000-unit pace. On a year-to-date basis, total completions across both sectors are down 9.5% reflecting ongoing challenges in the residential construction sector.

Overall permits declined 3.0% to a 1.37-million-unit annualized rate in June. Single-family permits decreased 2.4% to an 871,000-unit rate and are essentially flat compared to June 2025. Multifamily permits are down 4.2% to an annualized 496,000 pace and are down 5.7% compared to June 2025. Looking at regional permit data on a year-to-date basis, total permits were 15.2% higher in the Northeast, 1.4% higher in the Midwest, 0.7% higher in the West, but 6.3% lower in the South. For single-family permits, the Midwest was the only region to post an increase, rising 1.3% reflecting the residential construction strength in the region.



This article was originally published by a eyeonhousing.org . Read the Original article here. .


The market value of households’ real estate assets rose to a new high in the first quarter reaching $48.7 trillion, according to the most recent release of U.S. Federal Reserve Z.1 Financial Accounts. This level is 1.7% higher than in the fourth quarter and is 2.6% higher than a year ago.

This measure of market value estimates the value of all owner-occupied real estate nationwide. The calculation combines repeat-home sales data with estimates of additions to the housing stock, essentially measuring both price changes and the change in quantity of housing assets. This approach explains why household real estate wealth can continue to rise even as other measures may show a slowing in home price growth.

Real estate secured liabilities of households’ balance sheets, i.e. mortgages, home equity loans, and HELOCs, increased 0.2% in the first quarter to $13.8 trillion. This level is 2.8% higher compared to the first quarter of 2025.

Owners’ equity share of real estate assets was 71.6% in the first quarter. This was the twelfth consecutive quarter where this share was over 70%. Owners’ equity in real estate totaled $34.9 trillion in the first quarter.

Distributional Financial Accounts 

The quarterly release of the financial accounts by the Federal Reserve includes extensive balance sheet data. As a supplement to the main release, additional data regarding households is released in the distributional financial accounts a few weeks after the main release. This data contains the level and share of aggregate household wealth by income, age, generation, education, and race. The section below focuses on real estate assets value by generation for households and is current through the fourth quarter of 2025.

In the fourth quarter, households in the Baby Boomer generation held the largest level of real estate assets, totaling $19.4 trillion. Baby Boomers have owned the most real estate wealth since the fourth quarter of 2000. The generation with the second-largest level of real estate assets was Gen X at $14.3 trillion. Millennials held the third most, at $10.2 trillion, while the Silent Generation held $4.1 trillion. Notably, despite owning the least amount of aggregate real estate, households in the Silent Generation were second when the data is adjusted to a per household measure.

While every generation has seen remarkable gains in real estate assets since 2020, households in the Baby Boomer generation have experienced higher gains in terms of value while Millennials have gained the most on a percentage basis. Households in the Baby Boomer generation between the fourth quarter of 2020 to 2025 gained $15,454 in real estate asset value per household, a 47.1% increase. Meanwhile, Millennials gained $9,136 over the same period, an astounding 80.4% increase from 2020. Since these measures are at a per household level, they are smaller than current home prices given not every household owns real estate assets.



This article was originally published by a eyeonhousing.org . Read the Original article here. .


New single-family home size had been falling since 2015 in response to declining affordability conditions. An exception occurred in 2021, when new home size increased as interest rates reached historic lows. However, as mortgage interest rates increased in 2022 and 2023 and affordability worsened, demand shifted back toward smaller homes. More recent data suggest these trends have stabilized, although that reversal is likely due to weakness for the starter-home market.

According to first quarter 2026 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,211 square feet, effectively unchanged from the start of the year but up more than 3% over the past two years. Average (mean) square footage for new single-family homes registered at 2,436 square feet, a small increase year-over-year.

On a one-year moving average basis, the average size of a new single-family home was increased slightly to 2,408 square feet, while the median size increased to 2,169 square feet.

Home size trends in 2026 are likely to post continued small gains, driven by relative strength at the high end of the market but constrained by housing affordability challenges.



This article was originally published by a eyeonhousing.org . Read the Original article here. .



After purchasing a classic 1940s bungalow stripped of its original charm, these Seattle parents of two young boys turned to interior designer Jessica Nelson to restore it. Their goal was to reintroduce character through architectural details while keeping the home modest and family-friendly. The warm, cozy interiors were inspired by the front porch entrance’s custom white-painted wood lattice trellis structure, joined at the top in an arch and with jasmine vines beginning to grow.

One of the primary objectives was establishing a kitchen that could transition effortlessly from busy school mornings to intimate dinner parties. At just 90 square feet, the original galley kitchen was cramped and inefficient. Nelson reimagined the floor plan, converting that space into a butler’s pantry and moving the kitchen to the back of the house to capture views of evergreen trees, Lake Washington and Husky Stadium.



This article was originally published by a www.houzz.com . Read the Original article here. .


Profitability for residential remodelers reached its highest level in more than two decades in 2024. Industry-wide profit benchmarks are important because they allow companies to evaluate their financial performance in context with the industry. Doing so can guide resource allocation, budgeting, and target setting for costs and expense lines, leading to a more successful business strategy. This post summarizes the results from NAHB’s most recent edition of the Remodelers’ Cost of Doing Business Study.

On average, residential remodelers reported $2.7 million in total revenue for fiscal year 2024. Of that, about $1.9 million (70.1%) was spent on cost of sales (i.e., labor, materials, contractors), which translates into an average gross profit margin of 29.9%. Operating expenses (i.e., indirect construction costs, finance, S&M, G&A, and owner’s compensation) cost remodelers an average of $646,000 (23.6% of revenue), leaving them with an average net profit margin of 6.3%. 

Remodelers’ 29.9% average gross profit margin in 2024 was a solid five percentage points higher than in 2021, when the metric sank to a record low of 24.9%. The improvement was due in large part to a significant reduction in trade contractor costs, which dropped from 36% of revenue in 2021 to 30% in 2024. The average gross margin in 2024 (29.9%) marked a return to gross profitability levels at par with 2018 (30.1%).

Successfully reducing their costs of sales improved remodelers’ bottom line. In 2024, their average net profit margin (6.3%) was higher than in 2021 (4.7%) and 2018 (5.2%). It was also the highest net margin reported by remodelers since 1996 (6.8%).

The Cost of Doing Business Study also tracks residential remodelers’ balance sheets. On average, they reported $668,000 in total assets on their 2024 balance sheets. Of that, $331,000 (50%) was financed by liabilities (either short- or long-term) and the other $337,000 (50%) by equity builders held in their companies.

Historical data show remodelers’ balance sheets expanded significantly in 2024, with average total assets ($668,000) up 34% compared to 2021 ($497,000). But perhaps more important than fluctuations in the nominal size of their balance sheets, the data clearly point to remodelers deleveraging their businesses in the last decade. In 2015, 68% of remodelers’ assets were financed through debt. By 2021, that share was down to 49%, where it remained essentially unchanged in 2024 (50%). Logically, the latter means remodelers are using more of their own capital to run their companies, as illustrated by their equity share rising from 33% in 2015 to 50% in 2024.

More specific data about remodelers’ various cost of sales lines (e.g., the share of revenue spent on materials), operating expenses (e.g., how much owners were paid as compensation), or types of assets (e.g., cash) are available in the official publication of the 2026 Remodelers’ Cost of Doing Business Study.



This article was originally published by a eyeonhousing.org . Read the Original article here. .



This Portland, Oregon, couple wanted to transform the basement of their historic home into a special place for entertaining. As parents in a blended family with three kids, they envisioned an adult-oriented retreat with a lounge, a home office, storage for their large wine collection and a bar for serving it when hosting friends.

After beginning construction with a contractor, they realized they needed more professional design help than they had anticipated. They initially hired Workaday Architects for a consultation on layout ideas, but the meeting inspired them to bring the firm on to design the entire project. The scope expanded to include built-ins, new stairs, a wine room, a powder room, the bar, lighting and more. The finished design balances the historic architecture of the home with the couple’s favorite midcentury pieces, meaningful artwork and modern updates.



This article was originally published by a www.houzz.com . Read the Original article here. .


New single-family home size had been falling since 2015 in response to declining affordability conditions. An exception occurred in 2021, when new home size increased as interest rates reached historic lows. However, as mortgage interest rates increased in 2022 and 2023 and affordability worsened, demand shifted back toward smaller homes.

More recent data suggest these trends have stabilized amid modest affordability improvements. According to fourth quarter 2025 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,183 square feet, effectively unchanged from the start of the year. Average (mean) square footage for new single-family homes registered at 2,447 square feet, a small increase.

On a one-year moving average basis, the average size of a new single-family home was essentially unchanged at 2,404 square feet, while the median size remained stable at 2,163 square feet.

Home size trends in 2026 are likely to remain relatively flat, reflecting crosswinds from housing affordability constraints and elevated construction costs.



This article was originally published by a eyeonhousing.org . Read the Original article here. .



Before Photo

WINN Design+BuildSave Photo

“After” photos by Sarah Pitterle Maldonado of Nova Soul Imagery

Kitchen at a Glance
Who lives here: A family
Location: Vienna, Virginia
Size: 256 square feet (24 square meters)
Designer-builder: Winn Design + Build

Before: Heavy traditional-style white cabinets stopped short of the ceiling and didn’t provide the storage the family needed. An abundance of stainless steel appliances overwhelmed the room, while a dated, busy tile backsplash created visual clutter. Dark granite countertops along the perimeter and a lighter granite on the island also felt out of step with the homeowners’ goals. They did want to keep the white oak flooring and have it refinished. “It continues into adjacent rooms,” says design-build pro Michael Winn.

The sink on the right and the rangetop on the back wall worked well but the left wall felt disjointed. A cramped grouping of wall ovens, a hulking microwave and a toaster oven sitting on the countertop crowded an awkward run of cabinetry. “They also had a workstation there that ends up for most people being a gathering space for papers,” Winn says. “We did away with that and cleaned things up.”

The large stainless steel refrigerator also made the cooking area feel tight. “To the left of that was the pantry closet,” Winn says. “It was a step-in pantry that simply consisted of deep shelves, so things would get lost in the back.”



This article was originally published by a
www.houzz.com . Read the Original article here. .

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