There isn’t much sign of optimism for the residential construction market, even allowing for an interest rate reduction by The Fed. Typically, an interest rate reduction would see mortgages become more affordable and drive housing activity. However, the cost of housing remains very high, limiting affordability for first-time buyers even with a reduction in interest rates. For those that already have a mortgage, they are likely locked into a 30-year term with a more favourable interest rate than is currently available. In this situation mortgage owners would need to be moving for a significant salary increase, something that is hard to see in a ‘soft’ job market.
Our latest research shows that falling demand for construction machinery in the US, driven by tariff uncertainty, project slowdowns and shifting investment patterns, is delaying a full recovery until 2026.
Rising equipment costs, longer procurement cycles, and cautious investments are reshaping how contractors approach machinery by turning to rentals or delaying purchases.
As the construction market rebalances, understanding which sectors remain active is essential to anticipating machinery demand.
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