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Slight Increase for Construction Job Openings – Eye On Housing

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The number of open positions in the construction sector edged higher in April, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. Recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy surged in April, increasing from 6.89 million in March to 7.62 million. The April reading was also measurably higher compared to a year ago (7.10 million). It will be worth watching next month to see if these preliminary estimates stand, as the data suggests strength for labor demand, particularly in the professional and business service sectors.

The number of open construction sector jobs increased for the month, rising slightly from 234,000 in March to 259,000 in April. This total was higher than the total from a year ago (207,000). The chart below notes a declining trend followed by stability for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data center construction). This has produced volatility within a reduced range in the job openings series since 2024.

The construction job openings rate increased to 3% in April, up from the 2.4% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.5% in April. The quits rate was unchanged at 1.7% for the month.



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

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Single-Family Construction Slips Across All Geographies – Eye On Housing

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Single-family construction declined across all geographies in the first quarter of 2026, according to the latest Home Building Geography Index (HBGI), as elevated interest rates, rising material costs, and labor shortages slowed home building activities at the start of the year. Meanwhile, multifamily construction remained broadly resilient, posting growth in most markets.

Single-Family

The pullback in single-family activity was sharpest in large metro core counties, which recorded a 16.0% year-over-year decline on a four-quarter moving average (4QMA) basis — a deterioration of 3.2 percentage points from the prior quarter. More broadly, single-family construction in non-rural areas, which are counties within a metro area, fell 9.2%.

These declines are part of a longer-term structural shift away from dense population centers. Large metro core counties have shed an average of 0.1 percentage points of single-family market share every quarter for the past decade, with the pace accelerating after the pandemic. In Q1 2026, large metro cores accounted for just 14.7% of single-family permits — down 1.3 percentage points from a year earlier and 4.1 percentage points below their Q1 2016 share. Large metro suburban counties have similarly lost 3.3 percentage points of market share over the past decade.

The gains have flowed to smaller and outlying markets. Outlying counties in small metros recorded the largest increase, gaining almost two percentage points compared to a decade ago and 0.7 percentage points relative to Q1 2025 to capture 10.8% market share.

Multifamily

Multifamily construction told a different story in Q1 2026, expanding across most geographies. Large metro core counties led the way with 20.8% growth (4QMA), picking up pace after returning to positive territory in the prior quarter. Construction in non-rural counties grew 10.5% overall.

Markets with negative growth were large metro outlying counties, which fell 24.6%, and micro counties, which edged down 0.6%. Both had posted consistent growth throughout 2025 and appear to be normalizing. Rural counties, in general, saw multifamily growth slow sharply, from 11.4% in the previous quarter to just 1.8%.

On the market share front, large metro core had the largest multifamily share increase by 3.2 percentage points to 36.5%. Meanwhile, large metro outlying counties saw the largest decline, dropping 1.6 percentage points over the year to 3.1%.

Over a longer horizon, multifamily market share has migrated slowly but steadily from large metro core counties to smaller metro core counties, with the former losing 8.6 percentage points and the latter gaining 5.1 percentage points over the past decade. However, since last year, large metro core counties have steadily regained market share as demand for rental housing remains strong.

The first quarter of 2026 HBGI data along with an interactive HBGI map can be found at https://nahb.org/hbgi.



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

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Private Residential Construction Spending Increases in April – Eye On Housing

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Private residential construction spending was up 0.8% in April 2026, following the monthly gain of 0.6% in March. This increase was largely driven by gains in single-family, and home improvement spending. Moreover, total private residential construction spending was 1.7% higher than a year ago. 

According to the latest construction spending data from the U.S. Census, single-family construction spending increased 1.4% in April, consistent with the steady builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Despite the monthly gain, single-family construction spending was down 2.9% over a year ago. Improvement spending (remodeling) also increased in April, rising 0.4% for the month. Remodeling remained a bright spot on a year-over-year basis, with spending up 7.5% from April 2025. Meanwhile, multifamily construction spending edged down 0.3% in April. This marks the first monthly decrease after two consecutive months of modest gains. Compared to a year earlier, multifamily spending was 1.1% higher.  

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 July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation. 

Spending on private nonresidential construction was down 2.1% over a year ago. The annual private nonresidential spending decrease was driven by a $41.8 billion drop in manufacturing construction spending



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

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First Quarter 2026 Multifamily Construction Data – Eye On Housing

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According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased year-over-year during the first quarter of 2026. For the quarter, 107,000 multifamily residences started construction. Of this total, 103,000 were built-for-rent. This built-for-rent total was 21% higher than in the first quarter of 2025. Prior NAHB analysis suggests this expansion primarily occurred in smaller metro areas and lower density markets, given ongoing weakness in urban core areas.

The market share of rental units of multifamily construction starts was 96% for the first quarter. A historical low market share of 47% for built-for-rent multifamily construction was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period.

For the first quarter, there were 4,000 multifamily condo unit construction starts, down significantly from a year ago (7,000) given ongoing housing affordability challenges.

An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to the first quarter 2026 data, the average square footage of multifamily construction starts declined to 1,047 square feet. The median, or typical unit, posted a large decline to 960 square feet, the lowest on record. These measures are consistent with the elevated share of multifamily built-for-rent construction.



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

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Custom Home Building – A Bright Spot for Construction – Eye On Housing

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With overall single-family construction down 5% for the first four months of 2026, custom home building has been a relative bright spot. The custom building market is less sensitive to the interest rate cycle than other forms of home building but is more sensitive to changes in household wealth and stock prices. With spec home building down and the stock market up, custom building has expanded its market share.

According to NAHB’s analysis of Census data from the Quarterly Starts and Completions by Purpose and Design survey, there were 36,000 total custom building starts during the first quarter of 2026. This is up 3% relative to the first quarter of 2025.

For the last four quarters, custom single-family housing starts totaled 188,000 homes, a 3% increase compared to the prior four quarter period (182,000).

Currently, the market share of custom home building, based on a one-year moving average, is 20% of total single-family starts. This is down from a prior cycle peak of 31.5% set during the second quarter of 2009 and the 21% recent peak rate at the beginning of 2023, after which spec home building gained some market share.

Note that this definition of custom home building does not include homes intended for sale, so the analysis in this post uses a narrow definition of the sector. It represents home construction undertaken on a contract basis for which the builder does not hold tax basis in the structure during construction. This form of home building is almost universally undertaken by smaller, private home builders.



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

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Cyclical Weakness for Townhouse Construction – Eye On Housing

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First quarter 2026 data reveal softer conditions for townhouse construction volume as housing affordability challenges affect homebuyer demand.

According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the first quarter of 2026, single-family attached starts totaled 34,000, down 21% from the first quarter of 2025. This was the weakest quarter since the first quarter of 2023.

Over the last four quarters, townhouse construction starts totaled 163,000 homes, down 7% from the prior four quarter period (175,000). Townhouses made up almost 16% of all of single-family housing starts for the first quarter of the year.

Using a one-year moving average, the market share fell back to 17.6%, after reaching an all time high in the third quarter of 2025 (18.7%).

Prior to the current cycle, the peak market share of the last two decades for townhouse construction was set during the first quarter of 2008, when the percentage reached 14.6% on a one-year moving average basis. This high point was set after a fairly consistent increase in the share beginning in the early 1990s.

The long-run prospects for townhouse construction are positive given growing numbers of homebuyers looking for medium-density residential neighborhoods, such as urban villages that offer walkable environments and other amenities. Where it can be zoned, it can be built.



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

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Residential Construction Input Prices Move Higher In April – Eye On Housing

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Prices rose across a host of goods and services used in residential construction. Rising energy prices were the primary driver, but transportation service prices also rose at their fastest pace since 2022. Meanwhile, building material prices, excluding energy, rose at their highest yearly rate in three years, up 3.7% from a year ago.

The Producer Price Index for final demand increased 1.4% in April, after rising 0.7% in March. Compared to a year ago, final demand prices were up 6.0%. The index for final demand services rose 1.2% in April, while the index for final demand goods rose 2.0% over the month.

The price index for inputs to new residential construction rose 1.3% in April and was up 5.9% from last year. The price of goods used in new residential construction was up 1.2% over the month and up 6.1% from last year, while the price of services was up 1.3% over the month and up 3.7% from last year.

Input Goods

The goods component has a larger importance to the inputs to residential construction price index, representing around 60% of the total. On a monthly basis, the price of input goods to new residential construction was up 1.2% in April.

The input goods to residential construction index can be further broken down into two separate components, one measuring energy inputs with the other measuring remaining goods. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Energy input prices rose 13.8% in April and were 39.4% higher than a year ago. Building material prices were up 0.1% in April and up 3.7% compared to one year ago. Building material prices have continued to grow above 3.0% since July of last year.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 74.4% higher than a year ago. Asphalt prices rose 18.0% higher than April 2025 after declining in March. Softwood lumber prices were up 1.1% in April after declining on a yearly basis for several months. Fewer materials showed yearly price declines than in March. Particleboard and fiberboard prices were down 12.0%, while softwood veneer/plywood prices were down 1.7%.

Input Services

Prices for service inputs to residential construction reported an increase of 1.3% in April. On a year-over-year basis, service input prices were up 5.6%. The price index for service inputs to residential construction can be broken out into three separate components: a trade services component, a transportation and warehousing services component, and a services excluding trade, transportation, and warehousing component (other services).

The most significant component is trade services (around 60%), followed by other services (around 29%), and finally transportation and warehousing services (around 11%). The largest component, trade services, was up 5.6% from a year ago. The price of transportation and warehousing services rose 15.3%, while prices for other services were up 1.6% over the year. Long-distance motor carrying service prices rose 10.4% in April and were 18.3% higher than a year ago, while local motor carrying service prices rose 1.4% in April and were 6.3% higher than a year ago. These are the two transportation services that are represented as inputs in the residential construction price index.



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

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Private Residential Construction Spending Increases in March – Eye On Housing

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Private residential construction spending was up 1.7% in March 2026, following two straight months of declines. The increase was broad-based, with gains in single-family, multifamily construction, and home improvement spending. Moreover, total private residential construction spending was 3.6% higher than a year ago.

According to the latest construction spending data from the U.S. Census, single-family construction spending increased 2.7% in March, consistent with the steady builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Despite the monthly gain, single-family construction spending was down 4.2% over a year ago. Meanwhile, multifamily construction spending edged up 0.3% in March. This marks the second monthly increase after two consecutive months of modest declines. Compared to a year earlier, multifamily spending was 0.5% higher. Improvement spending (remodeling) also increased in March, rising 0.9% for the month. Remodeling remained a bright spot on a year-over-year basis, with spending up 14.3% from March 2025.

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 July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.

Spending on private nonresidential construction was down 2.1% over a year ago. The annual private nonresidential spending decrease was driven by a $39 billion drop in manufacturing construction spending.



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

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Slight Rise for Open Construction Jobs in March – Eye On Housing

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The number of open positions in the construction sector edged higher in March, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. However, recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy declined, falling from 6.92 million in February to 6.87 million in March. The March reading was down from a year ago (6.95 million) due to a cooling labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further. However, this is situation is complicated by rising energy costs due to the Iran war.

The number of open construction sector jobs increased for the month, rising slightly from 201,000 in February to 224,000 in March. This total was down compared to a year ago (278,000). The chart below notes the declining trend that has been in place for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data centers). This has produced volatility within a reduced range in the job openings series since 2024.

The construction job openings rate increased to 2.6% in March, down from the 3.3% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.7% in March. The quits rate increased to 1.7% for the month.



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

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Student Housing Construction Investment Holds Steady in the First Quarter of 2026 – Eye On

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Private fixed investment in student dormitories edged up 0.1% in the first quarter of 2026, holding at a seasonally adjusted annual rate (SAAR) of $3.9 billion. This modest gain marked a third consecutive quarterly increase, despite continued pressures from elevated interest rates. However, on a year-over-year basis, investments in dorms remained almost unchanged.

Private fixed investment in student housing experienced a surge after the Great Recession, as college enrollment increased from 17.2 million in 2006 to 20.4 million in 2011. However, during the pandemic, private fixed investment in student housing declined drastically from $4.4 billion (SAAR) in the last quarter of 2019 to $3 billion in the second quarter of 2021. According to the National Student Clearinghouse Research Center, college enrollment fell by 3.6% in the fall of 2020 and by 3.1% in the fall of 2021.

Since then, private fixed investment in dorms has rebounded, as college enrollments show a gradual recovery from pandemic-driven declines. Effective in-person learning requires college students to return to campuses, boosting the student housing sector. Still, demographic trends are reshaping the outlook for student housing. The U.S. faces slower growth in the college-age population as birth rates declined following the Great Recession. As a result, total enrollment in postsecondary institutions is projected to only increase 8% from 2020 to 2030, according to the National Center for Education Statistics, well below the 37% increase between 2000 and 2010.

Despite recent fluctuations, student housing construction shows signs of recovery, and future growth is expected in response to increasing student enrollment projections.



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