The commercial market experienced a year of mixed activity in 2024, with some sectors showing resilience while others struggled amid inflation-driven price hikes, shifting end-user demands and labor constraints. Those factors combined to push commercial flooring sales down slightly to approximately $7.019 billion in 2024, a decrease of 1.6% over the year prior.
Flooring sales within key commercial segments such as healthcare, education and hospitality were anywhere from flat to modest growth while corporate offices and retail spaces saw declines, FCNews research found.
Here’s how some of the key end-use market sectors performed:
Corporate challenges
One sector that continued to recover from the fallout of the COVID-19 pandemic is offices, which saw its share of commercial flooring sales hold steady at around 13%, FCNews research shows. But that’s down significantly from 40% in 2020. Office/corporate vacancy rates hovered around 20% in 2024, leeching into the 2025 first quarter. “Commercial flooring has been declining due to factors such as widespread work-from-home policies, the impact of automation and AI, high office rental costs and ongoing corporate down-sizing or rightsizing initiatives,” said Jeff Galloway, vice president, product management, Mohawk Group.
New office construction remains limited, with only 3.5 million square feet delivered in Q1 2025, the lowest in over a decade, according to statistics provided by Coldwell Banker Commercial. The data demonstrates how the office market continues to grapple with shifting workplace dynamics, as hybrid work models and economic uncertainty influence leasing activity and interior design choices. “Corporate was the largest and most challenged for growth in the past 12 months,” said Eric Ruppert, senior director of product marketing and category management, Engineered Floors.
While some businesses sought to downsize office footprints, others invested in high-quality, flexible spaces to attract employees back to in-person work. For example, premium office spaces in major cities are reportedly maintaining strong demand. Case in point: In New York City, the overall availability rate fell to 17.3%, the lowest in five years, and was fueled by strong demand for trophy properties, according to published reports.
“The focus on quality in top-tier office spaces presents an opportunity for our contractors specializing in high-spec materials covering central business districts,” said Mark Bischoff, president and CEO, Starnet Worldwide Commercial Flooring Partnership.
Carpet tile and LVT remain popular choices as businesses valued their value and versatility across multiple applications. “Carpet tile dominates due to its modularity and ease of replacement during remodels,” said Carrie Edwards Issac, vice president of marketing, Shaw Contract. “Hybrid work models have led to phased renovations, favoring tile.”
The shift toward hybrid workspaces is increasingly influencing flooring choices, with modular and adaptable designs allowing businesses to reconfigure spaces easily. Technological advancements, such as smart systems that monitor foot traffic, continue to gain traction as businesses seek ways to optimize maintenance and longevity.
“Innovation, sustainability and a renewed focus on healthy materials are reshaping commercial flooring in ways that align with broader design and construction trends,” said Rusty Joyce, Tarkett Commercial president.
Healthcare’s pulse
Not all segments are equally challenged. Healthcare maintained its pace as one of the fastest-growing commercial segments, capturing the largest market share (44%), according to FCNews research. Healthcare services demand maintained an upward trend in hiring since 2022. The sector added 62,000 jobs in May 2025, higher than the average monthly gain of 44,000 over the prior 12 months, the Bureau of Labor Statistics reported last year. “While some sectors are still navigating post-pandemic shifts, we’re seeing strong momentum in key verticals like education, healthcare and hospitality,” said Carrie Edwards Issac, vice president of marketing, Shaw Contract.
The healthcare industry in particular is coming off a year of rapid transformation, as economic pressures, aging populations and technological innovation reshaped operations across hospitals, clinics and long-term care facilities. These changes, observers said, had a marked impact on facility interior design, where infection control, durability and patient comfort took center stage.
“The healthcare sector is experiencing growth driven by an aging population, an increased focus on better health and advancements in technology,” Mohawk’s Galloway noted.
A major factor driving demand is continuing growth of medical office expansions. “The medical office building sector is growing rapidly, driven by demographics and dramatic increases in outpatient procedures and ambulatory care,” Starnet’s Bischoff said. “This indicates consistent demand for flooring in hospitals, clinics and medical office buildings.”
A key driver is the continued surge in outpatient care. With more procedures shifting away from hospitals to ambulatory care centers, design priorities evolved accordingly. Flexibility and speed of installation became critical, leading to a preference for modular flooring like LVT and carpet tile, which allows quick repairs and replacements without disrupting services, proponents said.
“Healthcare is the biggest segment for sheet vinyl,” Geoff Gordon, executive director, Fuse Commercial Flooring Alliance, noted. “But we continue to see LVT, ceramic tile and rubber.”
Increasingly, hospitals are seeking eco-friendly materials that align with green building initiatives. Recycled rubber, bio-based linoleum, and low-emission floors are reportedly gaining traction, as healthcare facilities strive to reduce their carbon footprints while improving indoor air quality. “Clients are demanding low-carbon, recyclable products,” Shaw’s Issac said. “Our EcoWorx Bio backing, RE[TURN] reclamation program and Cradle to Cradle certifications are central to meeting these expectations.”
Back to school
Education was the second-largest commercial flooring sector, accounting for 23% of commercial end-use activity in 2024, FCNews research shows. K-12 dominates education-related construction, accounting for roughly 75% of total sales, with higher education making up the remaining portion. “Education is another growing sector, influenced by K-12 population growth, aging infrastructure requiring updates, increased college enrollment and a rising demand for highly skilled employees,” Mohawk’s Galloway said.
And while some educational institutions remained committed to updating and refreshing their properties during slow times, challenges limited some opportunities last year. For example, many public schools operate under tight financial restrictions, making affordability a primary factor during remodeling. Further compounding matters are project delays, which can be par for the course. “The business didn’t die down from lack of projects on the specified side,” Catherine Del Vecchio, AHF’s vice president, marketing, observed. “Budgets didn’t get approved in time for the work to be done.”
Observers expect the tide to turn, however. Growth is projected in the segment, as construction and renovation projects accelerate. These projects require a diversified amount of soft and hard surfaces, especially at institutions that operate multiple facilities. “Institutional construction is likely to remain a steady but modest contributor to growth, with gains in healthcare and recreational projects balanced out by weaker spending on education buildings,” said Rocamador Rubio, director, Trade Commission of Spain.
As institutions prioritize longevity and performance, flooring manufacturers are innovating to provide solutions that support evolving design flexibility. Hard surfaces dominate the landscape, representing more than half of flooring sold to K-12 educational spaces. Carpet also plays a significant role, as schools are the second-largest commercial market for this material, research shows.
An increasing emphasis on sustainability is also affecting material choices. Schools are looking for “green” flooring solutions that meet environmental standards while reducing their carbon footprint, according to published reports. “Many commercial designers and architects, especially those seeking LEED certification or other green building certifications, prioritize sustainable materials that are manufactured using environmentally friendly practices that align with these standards,” Rubio observed.
As schools integrate more technology-driven learning, collaboration and movement within these spaces are front of mind with designers. For example, carpet tiles allow for easy reconfiguration of learning areas while hard surfaces such as LVT, ceramic, hardwood and polished concrete offer easier cleaning and longer lifespans. “We’re seeing porcelain tile find its way into common areas within education,” said Fred Reitz, senior vice president of commercial, AHF Products. “There are food court and shopping areas where almost all of those spaces have porcelain on the floor.”
That’s not to say that tile is without its own challenges in the commercial arena. “The tile industry continues to face supply chain vulnerabilities following global disruptions,” Trade Commission of Spain’s Rubio said. “Commercial projects are particularly affected by inconsistent material availability, shipping delay and volatile raw material costs.”
Hospitality shines
The hospitality industry, which includes subsectors such as arts, entertainment, recreation, accommodation and food services, continued its post-pandemic recovery, fueled by boosts in leisure travel, conferences and business meetings. “One macro issue that came out of COVID-19 is people are spending more money on travel,” said Yon Hinkle, AHF’s vice president of product management – resilient. “There’s been a redistribution of where people are spending their discretionary income and a lot of it is experiential.”
These shifts are significantly influencing interior design across hotels and resorts, particularly in flooring. With travelers prioritizing high-end experiences, establishments focus on creating welcoming spaces through premium materials.
FCNews research shows the hospitality segment maintains an estimated 13% share of commercial flooring sales, with carpet, hardwood and LVT widely adopted to enhance the ambiance of guest rooms and common areas. “Hospitality is the one market segment where 12-foot broadloom carpet is still popular,” Fuse Commercial Flooring Alliance’s Gordon observed.
Another factor falling in hospitality’s favor in 2024 was the emphasis on sustainability in product selection. As companies look to reduce their environmental footprint, flooring producers responded with environmentally friendly lines featuring cradle-to-cradle certifications, low VOC emissions and materials made from post-consumer waste.
“Specifiers and end users are asking smarter questions about materials, life-cycle impacts and indoor air quality,” Tarkett’s Joyce reports. “This shift is pushing the sector toward more transparent and health-conscious solutions, which benefits both manufacturers and the communities they serve.”
Retail remains resilient
Despite persistent inflation, U.S. consumers continued to spend in 2024. But like past presidential election years, consumers appeared to pull back slightly leading up to November. But right after that, analysts said, consumers reopened their pocketbooks. This phenomenon, observers note, was a reflection of the mood of the country leading up to November as opposed to any real diminished buying power. Yes, there were a fair share of retail closings last year, but there were segments of the retail sector that continued to invest in their stores last year. These ranged from major chains to independent boutiques. “Retail is growing, primarily because of the expansion of big box stores and franchises, alongside necessary updates to aging or out-of-date retail models,” Mohawk’s Galloway explained.
The increased foot traffic is giving industry members reason to believe the segment will bolster its low-single-digit stake in the commercial flooring business this year. To attract more customers, retailers are reportedly focused on creating distinctive and memorable shopping experiences. “We have not seen a retail super cycle in many years,” Starnet’s Bischoff said, “so the members are hoping that one of the big retail chains makes a design rebrand part of their long-term effort to compete with online sales.”
Outlook for remainder of year
While mitigating factors expect to continue impacting project timelines and costs, industry observers are taking a cautious view of the market. “The largest current impact to the commercial business is probably some of the economic uncertainty that’s out there,” said Hilary Frank, Dal-Tile’s vice president of commercial sales and business development. “That’s probably preventing some owners from pulling the trigger, whether inquiring on a new project, kicking off a contract for a new project or really getting things continuing to move.”
Another factor impacting commercial construction, especially flooring is the shortage of skilled construction workers and floor covering installers. “Field labor scarcity is beginning to pinch our membership as the competition for tradespeople across construction ramps up,” Starnet’s Bischoff stated. “Other industries are far ahead of commercial flooring in the recruiting game, so the costs in the field will inevitably rise.”
Financing for commercial flooring projects is also impacted by factors shaping the overall real estate market, namely interest rates. During the end of December, Freddie Mac reported the fixed rate for a 30-year fixed-rate mortgage averaged 6.85% compared to 6.61% at the same time in 2023. Six months later, mortgage rates are essentially the same. And during the most recent Federal Reserve meeting, directors appeared hesitant to lower interest rates any further than the moves they made in September last year.
That has left some segments in particular exposed. For example, the multifamily market— which some observers consider commercial—saw a significant decline as starts fell 25% to a rate of 355,000 in 2024, industry data show. There were approximately 1 million apartments under construction, the highest rate since 1973, which put a damper on this business. “Multifamily unit turns are down because interest rates have made it more challenging to buy a home,” Noah Fulton, vice president, business strategy, Karndean Designflooring, observed. “Acquisitions have been down because the cost of properties is inflated.”
Then there’s the elephant looming in the room—tariffs on imports ahead of the holiday selling season. According to the CNBC/NRF Retail Monitor, retail sales grew through May 2025, even though consumers slowed down on stocking up ahead of tariffs. Core sales, excluding restaurants, automobile dealers and gasoline stations, were up 0.23% month over month in May and 4.2% year over year. “Consumer fundamentals haven’t been damaged yet and a slowing-but-still-growing job market is supporting household priorities ahead of any meaningful price increases in the coming months,” said Matthew Shay, president and CEO of the National Retail Federation.
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San Antonio, Texas—O’Krent Floors kicked off the summer season with a four-day sale that drew crowds not seen in years and created the kind of momentum that bodes well for the second half of the year.
Livonia, Mich.—Artivo Surfaces (Artivo), the parent company of 
Like the rest of flooring in 2024—including the behemoth resilient category—
The majority of tile’s challenges in 2024 came from the housing market. Like the rest of the industry, the category was impacted by still-high interest rates and slowing activity.
For the third consecutive year—after a 15-year high—U.S. ceramic tile imports were at 1.93 billion square feet in 2024, a 3.5% decline from the prior year, according to the TCNA. That’s below 2020 levels when imports sat at 1.97 billion square feet. In terms of consumption, imports comprised 71.5% of 2024 U.S. tile consumption by volume, up from 70.2% in 2023.
While the residential ceramic market hit some headwinds again in 2024, the commercial market fared a bit better while still ceding some share to its counterpart.
Pricing has been an interesting mix since 2021 when the average price of tile jumped from $1.18, which had hovered there for at least six years prior, to $1.24. Then in 2022 it skyrocketed 15% to $1.43. The following year it dropped slightly to $1.40 and 2024 followed its downward trajectory to average about $1.38.
There’s no denying the fact that the laminate flooring market was thoroughly enjoying a bona fide 
Indeed, existing home sales in the U.S. fell to 4.06 million units—their lowest level in nearly 30 years, according to data supplied by the National Association of Realtors (NAR). The continued softness in the existing home sales category particularly impacts the laminate flooring segment given the majority of laminate flooring is consumed here in the U.S. FCNews research shows the residential replacement sector accounts for roughly 80% of laminate flooring sold in the states. Naturally, any softness in that market segment is surely felt at the retail level.
Sales by channel
There’s even some data out there that puts China’s share even lower than that. “Imports from China are nearly zero, but that has been the case for the last several years,” NALFA’s Wright told FCNews.
Even private-label suppliers and importers like Austria-based Egger Floors—which exited the U.S. laminate market several years ago only to re-enter earlier this year—are expressing a renewed interest in the category’s potential in North America. “The resurgence in the U.S. market is definitely sustainable, and that’s due to ongoing product innovation, improved aesthetics, water resistance and a strong value proposition that appeals to both cost-conscious and design-driven consumers,” said Alex Decarie, who heads up business development, flooring, for Egger’s North American operations. “Laminate will continue to gain share from entry-level SPC, especially as the influx of entry-level and some poorly made SPC products has consumers seeking other choices when looking for value flooring.”
The dynamics that impacted the hardwood flooring category in 2023—i.e., intense competition from wood look-alike products like SPC, WPC, LVT and laminate, as well as competition for raw materials from end-use sectors other than wood flooring—continued to 
Other major hardwood flooring executives agree that the high end was the category’s saving grace last year. “There’s always going to be a customer for real hardwood,” said David Moore, vice president of product management, Mohawk. “There’s always going to be someone who says, ‘I want the real thing. I want to have a party, have all my friends over, and tell them that this is a real wood floor. And when I sell my home, I want to list real wood floors on the documentation.’”
All this activity is reflected in the movement seen in terms of wood flooring consumption last year. FCNews research shows the residential replacement sector accounted for 66.4% of wood flooring sales in 2024, up slightly from 65.4% the year prior. Meanwhile, wood consumption in the new home construction sector dipped slightly below 20%. Commercial wood consumption remained relatively steady at roughly 11.6% of sales, based largely on the strength of specified products going into restaurant, hospitality and higher education settings like university libraries. There was slightly less usage in corporate/office applications for wood.
For example, five years ago, shipments from China accounted for nearly 60% of all hardwood flooring sold in the U.S. at the first point of sale. In 2022 that number plummeted to 26% before dropping 2 more percentage points in 2023. For 2024, that number is hovering around 20% and falling fast. For perspective, hardwood imports from Vietnam, Cambodia, Thailand, Malaysia and others grew from roughly 9% in 2018 to 43% in 2022; 47% in 2023; and 49.4% last year.
Another factor is the ongoing competition for raw lumber—not necessarily within the flooring arena but other market sectors. For instance, competition for raw lumber materials from segments such as wine-barrel manufacturing, furniture, paper/pulp industries and the like. This phenomenon has intensified as various industries continue to demand high-quality timber. This competition has been exacerbated by the growing global demand for timber, particularly from countries like China, where demand for wood products has risen as the economy continues to expand.