Building Products Industry Insights - Fall 2026

The North American housing market continues to face headwinds as elevated interest rates, affordability constraints, and ongoing supply challenges influence residential construction and homebuying activity across both the United States and Canada.

 

U.S. Housing Indicators

High interest rates and constrained housing supply remain key factors shaping the U.S. housing sector. Following multiple rate cuts in 2025, mortgage rates trended higher throughout much of 2026, increasing financing costs for prospective buyers and contributing to slower residential construction activity.

Despite these challenges, home prices have continued to rise, albeit at a more moderate pace. As homeowners remain reluctant to move from existing lower-rate mortgages, demand for remodeling and improvement activity is expected to remain resilient into 2027.

 

Canadian Housing Indicators

Canada's housing market experienced a slowdown in residential construction during 2026, with both multi-unit and single-detached housing starts declining compared with the prior year. Economic uncertainty and elevated development costs contributed to softer construction activity. However, the resale market has shown encouraging signs of improvement. Transaction activity increased throughout the second quarter of 2026, while home prices stabilized following declines earlier in the year. Additionally, building permit activity strengthened, supported by both residential and nonresidential construction projects, signaling potential improvement in the future construction pipeline despite ongoing softness in housing starts.