2025 Construction Industry Outlook: What Homeowners Should Know

The construction industry is shifting in 2025—and for homeowners, trade partners, and future clients, it’s more important than ever to understand where things are headed.

At Kenzo Construction, we stay ahead of these changes so you don’t have to. Here’s what we’re seeing on the ground and what you can expect as we look into 2026.

The Economic Landscape: Tariffs, Costs & Labor

The return of tariffs on key materials—steel, aluminum, and imported finish goods—has triggered price increases of 10–15% across many product categories. Lead times are extending again, especially on specialty items like appliances and lighting.

Meanwhile, the labor market remains tight. Skilled trades are in high demand, which is keeping wages elevated. At Kenzo, we continue to work with a trusted network of high-caliber subcontractors, ensuring consistency and quality across every project.

Demand Remains Strong in the Right Market

While high mortgage rates have slowed some segments of new construction, remodeling and custom homes remain resilient. We’re still seeing strong demand from two primary client types:

  • Established professionals who value craftsmanship and don’t want the hassle of a move

  • Retirees and empty nesters investing in legacy homes or downsizing with intention

Looking ahead, interest rate cuts expected in late 2025 may create fresh momentum in early-to-mid 2026—especially for new custom builds.

The Future of Homebuilding: Smart, Efficient, Intentional

Homeowners are increasingly prioritizing energy efficiency, smart systems, and future-forward design. Whether it’s solar prewiring, heat pumps, or ERVs, we’re ready to help you build a home that performs as beautifully as it looks.

In 2025 and beyond, what matters most isn’t cutting costs—it’s maximizing value, trust, and the experience.

Our Perspective at Kenzo Construction

We’re optimistic. We’re ready. And we’re committed to giving our clients the clarity, process, and craftsmanship they deserve—regardless of what the economy does.

Whether you’re planning a full-scale renovation, building from the ground up, or simply exploring options, we’re here to guide the way.

Let’s build something lasting.

Schedule a consult with us at kenzoconstruction.com

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