Washington, D.C.—In a sign of ongoing affordability challenges and a tepid housing market, single-family construction fell across all geographic regions in the second half of 2025. The exception was low-density, low-populated micro counties. Multifamily construction posted gains across all geographic regions.
These are the major findings of the latest Home Building Geography Index from the National Association of Home Builders for the final two quarters of 2025. The report was delayed due to last fall’s government shutdown and includes data for the third and fourth quarters.
“The HBGI data highlight how affordability and space needs are driving home construction toward lower-density markets,” said Bill Owens, a home builder and remodeler from Worthington, Ohio. “Large metro core counties saw the steepest single-family decline while smaller and micropolitan areas with lower land and construction costs gained momentum.
The HBGI is a quarterly measurement of building conditions across the country. It uses county-level information about single-family and multifamily permits to gauge housing construction growth in various urban and rural geographies.
“While single-family home building continues to face challenges across most of the nation, multifamily construction strengthened across every region in the fourth quarter following two years of uneven performance,” said Robert Dietz. “Growth returning to large metro core counties coupled with sustained construction in smaller markets signals a more balanced and geographically diverse multifamily sector heading into 2026 than in years prior.”
Single-family trends by geography
The index registered declines for different-sized single-family markets in the fourth quarter. The exception was micro counties, which posted a 1.6% gain. This marked the seventh straight quarter of construction growth in these counties.
Large metro core counties reported a 12.8% decline in the final quarter of last year. This was the largest year-over-year four-quarter moving average decline since 2023.
The HBGI geographic trends mirror the national trend in 2025, as single-family permits were down 7.4% from 2024.
The geographic composition of single-family construction continued to evolve in 2025. Large metro core counties lost 1.0 percentage point of market share between the fourth quarter of 2024 and the final quarter of 2025. Small metro core counties remained the largest market, adding 0.3 percentage points in market share. Micro counties posted the largest gain, up 0.6 percentage points from 2024.
The fourth-quarter HBGI shows the following market shares in single-family home building:
15.1% in large metro core counties
24.2% in large metro suburban counties
9.3% in large metro outlying counties
29.4% in small metro core counties
10.5% in small metro outlying areas
6.9% in micro counties
4.5% in non-metro or micro counties
Multifamily construction up across the board
Multifamily construction posted gains across all geographies in the fourth quarter. This marked the first time all geographic sectors showed quarterly growth since 2023.
Micro counties recorded the highest growth in the fourth quarter, up 14.0% on a year-over-year four-quarter moving average. Large metro outlying counties posted the lowest growth at 1.9%.
Market share of multifamily construction shifted in the fourth quarter of 2025. Higher levels of multifamily construction in smaller, less densely populated areas remained. Small metro core counties saw the largest increase, gaining 0.6 percentage points. Large metro outlying counties posted the largest decline, losing 0.5 percentage points. Other geographies saw little change.
The fourth-quarter HBGI shows the following market shares in multifamily home building:
35.1% in large metro core counties
26.4% in large metro suburban counties
3.7% in large metro outlying counties
25.1% in small metro core counties
4.9% in small metro outlying areas
3.5% in micro counties
1.2% in non-metro or micro counties
Strong consumer demand for real wood flooring is driving sales at the middle to upper end of the market.
Ongoing and intense competition from wood look-alike categories. Maintaining the category’s value proposition in an increasingly price-driven market. Contending with the impact of tariffs in a segment that’s dependent on a blend of both sourced and domestic production. Overall economic concerns centered on slow mortgage rate movement and wars in certain regions of the world. These are just some of the issues manufacturing executives identified as the top challenges facing the U.S. hardwood flooring market today.
“The market is being shaped by a combination of macroeconomic pressure and global uncertainty,” said Jerome Goulet, vice president of marketing, Mirage. “Interest rates and slower housing activity continue to weigh on demand, particularly in new construction. At the same time, global conflicts and trade tensions are creating volatility in energy, transportation and raw material costs.”
“Importers are now required to manage cash flow more conservatively, which directly impacts purchasing and inventory strategies,” said Louie Wang, senior vice president of sales, Johnson Hardwood. “High-cost engineered wood products, in particular, must be forecast with greater precision. This has, in some cases, led to tighter inventory positions and potential shortages.”
Many hardwood flooring suppliers rely on a mix of domestically produced and sourced products, although the tariff situation has caused a lot of uncertainty.
Indeed, some companies are making progress in solving that puzzle. Take Mohawk, for example. Although the company sources its wood program, it was able to adjust quickly in a tariff-driven climate. “We didn’t have to do a lot of moving product from point A to point B or a different country, and that’s been helpful for us,” said David Moore, vice president, product management, Mohawk. “But we have seen the impact of tariffs. We planned for it, and we certainly absorbed as much of it as we could and tried to offset it as best we could. However, we did have to pass some of those costs on to the retailer. It’s not something that anyone wants to do, but it’s just a situation where there’s not enough margin in the supply chain to absorb a 20% increase in costs.”
It’s a tricky environment to navigate, Moore noted, in an era defined by uncertainty. “There’s a lot of ‘they’re off, they’re on, now it’s a different tariff,’” he explained. “It’s 15% today, but it could go to 25% tomorrow. We felt like there was a little bit of stability when everything had landed, and we planned for that. Now we’ve entered back into an area of instability. Right now we’re just waiting to see how we’ll react as we get more confidence in a clear forward path that we’re going. It is what it is, unfortunately.”
Shaw, which also sources some of its wood flooring products, is taking a strategic view as well. “We are a firm believer that a balanced approach in sourcing and manufacturing hard surface is important,” said Benjamin Liebert, president, residential, Shaw. “We do source a number of products with select partners abroad. This gives us a ton of flexibility in what I call the ‘make vs buy.’ You can make it or you can buy it, but ultimately our goal is to own the innovation, to have the intellectual properity and work with our partners to do that.
“At the same time, we are also making investments here domestically. We have a hardwood facility in the Northwest Georgia area that continues to play a huge role in our hardwood with investment and product launches.”
For some companies, including AHF Products, tariffs don’t present much of a challenge. But then again, few domestic hardwood flooring suppliers can tout the stateside manufacturing footprint that AHF has—even though the company does import some engineered products. “Domestic manufacturing delivers real advantages for our customers,” said Milton Goodwin, senior vice president-product management, wood. “It means shorter lead times, better service consistency and the ability to support projects without disruption.”
Goodwin cited key benefits of U.S. manufacturing:
Faster and more predictable lead times to keep projects on schedule
Consistent product quality supported by controlled manufacturing processes
Reliable supply and reduced risk of disruption
Protection from tariff volatility and global sourcing uncertainty
High domestic content that is able to support customer preferences and project requirements
Competitive pressures
Macroeconomic issues aside, hardwood flooring manufacturers are also facing pressures from competing hard surface categories, including LVT/WPC and laminate. The key to recouping lost market share, wood proponents say, lies not so much in playing the pricing game but rather emphasizing wood’s unique attributes. As Mirage’s Goulet put it: “The challenge is not just demand, but ensuring the long-term value of real wood remains clearly understood in a more price-sensitive environment.”
Yvette Shroyer, director of marketing, Urbanfloor—another supplier that’s focused on the upper end of the market—also attested to the competitive margin pressures created by the increased consumption of today’s popular resilient flooring options. “As lower-cost hard surface alternatives like SPC and laminate continue to improve in both performance and aesthetics, they are capturing share at the more price-sensitive end of the market,” she explained.
Johnson Hardwood’s Olympus line
For Johnson Hardwood— which in recent years has expanded beyond its wood roots to include WPC, SPC and laminate—attested to the gains wood look-alike products have made. “Categories such as water-resistant laminate and WPC have been gaining market share at a rapid pace,” Wang said. “These products resonate strongly with today’s consumers due to their durability, color consistency, on-trend visuals and ease of maintenance. As a result, they are increasingly competing with—and in many cases replacing—traditional hardwood options in a wide range of applications.”
These competitive dynamics, industry experts say, are changing the way hardwood is being positioned in the marketplace. Specifically, it’s altering the mix of product tiers at retail. “Hardwood has lost ground in the ‘good/better’ middle of the market,” said Jamann Stepp, senior vice president, hard surfaces, Stanton Design. “When the price of hardwood jumps, consumers generally trade down. This is especially true in the remodel/multifamily category.”
The result, observers say, is hardwood is pushed into a narrower premium niche category—“where the average price point at retail is much higher than LVT/rigid core and the average square footage per order is also substantially higher,” Stepp added.
In that same vein, Johnson Hardwood cited sales data showing what Wang called “a bifurcation” in performance: higher-end engineered products (featuring thicker wear layers, 5/8– to ¾-inch profiles and premium grades) continue to perform well, as do entry-level options such as 3/8-inch products. “However, mid-tier products have experienced a noticeable decline in volume, suggesting that constrained spending power is influencing purchasing decisions.”
But some say that slower hardwood flooring sales activity at the opening price point might not necessarily be a bad thing for the hardwood category. As Wade Bondrowski, director of sales, U.S. at Mercier, explained: “The popularity of less-expensive wood look-alikes have reduced demand for entry-level wood flooring, and that has benefitted companies like ours that focus on the upper-mid to high end of the market.”
Industry observers agree that the ongoing price battle among less expensive competing hard surfaces presents a valuable opportunity for wood specialists.
“More than ever, manufacturers and retailers have an opportunity to differentiate beyond price, highlighting the enduring value of genuine hardwood through design, quality and authenticity,” Urbanfloor’s Shroyer stated.
Mirage’s Goulet concurred. “We are focused on reinforcing the value of real wood through innovation, strong design and a product offering that addresses different needs and price points. Hardwood remains a premium, high-value material, and over the long term its durability and authenticity position it well against alternative products. At the same time, we’re doubling down on service, ensuring our partners can rely on consistent lead times and product availability. In a more uncertain environment, reliability and support are key differentiators, and we continue to optimize our operations to deliver that consistency.”
If hardwood is indeed being more relegated to that upper-mid to high-end niche, that’s just fine with some suppliers. “In our engineered hardwood portfolio, we’re definitely seeing a lot of healthy activity there,” Mohawk’s Moore said, citing in particular the 9/16– and 5/8-inch-thick products featuring 3mm and 4mm face veneers. “There’s a lot of activity there because the people who are remodeling are the ones who don’t necessarily see inflation as a problem. They’re not having to worry about all of the increased costs that they’re seeing. They’re on the higher end of the socioeconomic status, which typically lends itself to being a wood consumer.”
Today’s most popular wood colors range from light neutrals, beiges and taupes to medium brown hues. Pictured is L’Artisan from Tarkett Home.
The demand for high-end wood flooring has inspired the creation of products that reflect an upscale appeal. Case in point is Tarkett Home’s L’Artisan, which was designed around what today’s homeowners are looking for: eye-catching visuals, simple choices and the option to personalize their home without paying the price of custom hardwood. Featuring European white oak, the new line comes available in 10 colors ranging from light neutrals, beiges and taupes to the on-trend medium brown hues. Each color is offered in two different formats—a broad width plank that is 9.5 inches wide with varying lengths up to 86 inches long, and a classic, narrow width plank that is 3 inches wide and up to 47 inches long. Four colors are also available in a herringbone format, a classic visual that’s resurging.
Outlook for remainder of 2026
Despite the numerous challenges facing the U.S. hardwood flooring market, executives remain largely optimistic—if cautiously. “We remain confident in the medium to long-term outlook,” Mirage’s Goulet said. “While the market is currently impacted by economic uncertainty, these are cyclical factors. As conditions stabilize and housing demand recovers, we expect the category to regain momentum.”
For sure, all eyes will be on the housing market. “We recognize that external market forces will play a pivotal role in shaping business outcomes this year,” said Danielle Lancianese, director of hardwood & laminate, Shaw. “The performance of the housing market is the most significant factor impacting the industry.”
AHF Product’s Goodwin agreed. “If lower interest rates convince more builders to start building houses, that’s going to help our engineered wood business. That’s because most housing is being built in the southern part of the U.S.”
For his part, Mohawk’s Moore is going to be keeping a close watch on world events. “We’re watching international freight and logistics closely with what’s going on in Iran,” he said. “We haven’t seen a huge impact yet, but it typically takes a little while to work through the network of ocean freight. Again, it’s a little bit more of the wait-and-see approach, but that’s certainly something we’re having conversations about.”
For decades, the commercial flooring market has largely been driven by one simple factor: price. Contractors bid on the work, the low bidder wins and installation is considered a straightforward task.
But as margins tighten and schedules compress, the pressure to complete the job can quickly take priority over best practices, especially with an inexperienced crew. Even when everyone works in good faith, the lack of installer training that likely produced the low bid can ultimately cost project owners far more when flooring failures surface later on.
Today, the old price-first approach is changing, especially in sectors where the consequences of failure are catastrophic, such as healthcare, education and transportation. In these risk-averse environments, owners and facility managers are shifting focus from the lowest upfront price to highly qualified contractors to avoid the kinds of failures that have collectively cost billions of dollars in rework.
The hidden cost of the low bid
Commercial flooring systems typically represent just 1%-2% of a construction project’s budget. But when flooring fails, remediation can significantly increase that initial cost. By the time flooring problems begin to appear in year two or three, often after installation warranties have expired, the expense to remove, replace and reinstall flooring can easily reach 10x or even 20x the original installation cost. And the effects of failure frequently extend beyond material replacement. Hospital wings may need to close. School buildings may require disruptive repairs. Airport terminals may face restricted operations. What begins as a flooring issue quickly becomes an unwelcome operational disruption.
As owners and facility managers become more aware of how installation skills affect long-term flooring performance, installers are increasingly being evaluated as risk managers. Contractors succeeding in this environment are those who think about their businesses in precisely this way, not simply as installers of materials but as managers of installation risk. They invest in structured training programs, they build relationships with manufacturers and they standardize procedures across their crews.
Contractors, manufacturers and training organizations are also working together to strengthen professional standards and workforce development. As the commercial flooring market assigns greater value to installation expertise, the contractors who lead the next generation of the industry will be those who recognize this shift early. Because in an industry where margins are tight and reputations matter, reliable performance is the most valuable competitive advantage of all.
David Gross is executive director of INSTALL, the leading organization for floor covering installation training and certification in North America. Prior to this role, he was a full-time instructor for the Eastern Atlantic States Carpenter’s Apprenticeship Training Fund, where he achieved Level III Advanced Instructor Certification. Gross holds a bachelor’s degree in economics, an MBA and is a BCSP Certified Safety Professional with more than 30 years of hands-on flooring installation experience.
The United States will officially celebrate its 250th anniversary later this year. The country’s semi-quincentennial provides flooring interests with a unique opportunity to promote and sell American-made products.
Some iconic American companies like Coca-Cola and Disney are planning extensive celebrations, product launches and community initiatives to commemorate the milestone. As for flooring, some retailers are looking to leverage their Made-in-USA story, touting products in their showrooms and the many advantages that come with domestic production.
This 4/20 issue of FCNews is our annual Made in USA edition. In it we cover the country’s anniversary, reshoring initiatives and much more.
Washington, D.C.—The Flooring Sustainability Summit announced its 2026 Architecture & Design Awards program. The initiative marks its second year and expands recognition across the industry. It highlights projects, people and firms advancing sustainability through flooring and surface design.
The 2026 program adds two new honors. These include Person of the Year and Architecture/Design Firm of the Year. The additions expand the program beyond project recognition. They also spotlight leadership and firm-wide commitment to sustainable design.
As sustainability continues to shape the built environment, the awards highlight the role of flooring and material innovation. These efforts support healthier and higher-performing spaces. Submissions are open through May 18, 2026. Entry is free and open to qualified participants across the industry. Architects, designers and firms are encouraged to submit projects and leadership initiatives.
The Summit also called on manufacturers and material suppliers to promote the awards to their A&D clients. The goal is to help identify eligible projects. Winning submissions offer a platform to showcase how products contribute to measurable sustainability outcomes.
“These awards underscore the power of collaboration across the industry,” said Bill Griese, Summit chairman. “This program celebrates the partnerships across the flooring, surfaces, architecture and design value chain that are driving more sustainable spaces.”
Award categories:
Project of the Year
Person of the Year (new for 2026)
Architecture/Design Firm of the Year (new for 2026)
Key dates
Submission deadline: May 18, 2026
Winner notification: June 15, 2026
Awards ceremony: July 15, 2026
Winners of the A&D Awards program will receive complimentary registration to the Summit. They will also receive onstage recognition in Washington, D.C. The ceremony will take place during an evening reception at the American Institute of Architects’ Global Campus for Architecture and Design. Winners will gain industry-wide visibility.
Lancaster, Pa.—Ecore Athletic announced a partnership with Olympic gold medalist Dan O’Brien, who will serve as a track performance consultant. He will support education, product research and development, sales engagement and industry outreach across the track and field market.
O’Brien won gold in the decathlon at the 1996 Olympic Games and is a four-time world champion. He remains active in the sport as a coach, meet director and broadcaster. He also works with USA Track & Field and the U.S. Olympic & Paralympic Committee. He is based in Scottsdale, Ariz.
Through the partnership, O’Brien will advise on athlete performance needs and contribute to product innovation. He will also take part in industry events, including trade shows and speaking engagements.
“Ecore Athletic is focused on helping athletes perform at their highest level while reducing the risk of injury and that starts with the surfaces they train and compete on,” O’Brien said. “I’m excited to partner with a company that is committed to innovation and understands the real-world demands of track and field. I look forward to contributing to the development of solutions that support athletes at every level.”
Ecore Athletic’s design
Ecore Athletic designs surfacing solutions for performance, safety and durability. The products serve indoor and outdoor tracks, training facilities and multiuse spaces. The company uses feedback from elite athletes to refine its offerings.
“Dan brings an unmatched level of credibility and experience to this partnership,” said David Sides, vice president of strategic partnerships at Ecore. “His perspective as both an elite competitor and coach will be invaluable as we continue to develop surfaces that enhance performance, support recovery and meet the demands of modern track-and-field programs. We’re thrilled to have him as part of the Ecore Athletic team.”
O’Brien will also support educational programs, sales meetings and customer engagement. His role reflects Ecore’s focus on science-driven design and athlete-informed solutions.
The new location marks a major step in MSI’s growth and investment in the region. The 550,000-square-foot facility expands service and improves access for customers. It also increases inventory and speeds up delivery across the Carolinas, Mid-Atlantic and Midwest.
MSI said the new center strengthens its distribution network. It also supports local economic development through job creation and regional growth.
The company will host a grand opening event on April 21, 2026, from 1 to 7 p.m. Attendees can expect raffles, food, facility tours and giveaways. MSI will also offer exclusive promotions during the event.
Emily Holle, senior director of trend and design at MSI, will host seminars throughout the day. She will share design trends, strategies and insights for creating impactful spaces. The sessions aim to help attendees gain ideas and connect with industry professionals.
“Our Suffolk location is designed to deliver more than just products—it offers a complete experience,” said Zachery Chavis, operations director at MSI Suffolk. “From hands-on showroom inspiration to streamlined distribution, we’re creating a space that empowers our customers to bring their visions to life.”
Washington, D.C.—In a sign of ongoing affordability challenges and a tepid housing market, single-family construction fell across all geographic regions in the second half of 2025. The exception was low-density, low-populated micro counties. Multifamily construction posted gains across all geographic regions.
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Washington, D.C.—
Lancaster, Pa.—
Suffolk, Va.—MSI announced the grand opening of its newest