URGENT UPDATE: The construction industry in Pennsylvania is experiencing a significant slowdown, with builders reporting a dramatic drop in business. Greg Harris, owner of G.P. Harris Construction, Inc. in Jonestown, revealed that inquiries for major home remodeling projects have sharply decreased over the past year and a half, reflecting a nationwide downturn in construction spending.
Harris stated, “Through 2023 we were extremely busy, and then it just seemed to be [people] lost the confidence to spend large amounts of money.” This shift has led to a preference for essential repairs over cosmetic renovations, highlighting a growing reluctance among homeowners to invest in large projects amid financial uncertainty.
The decline in construction activity is fueled by a combination of higher interest rates, rising material costs, and overall inflation. According to the Association of Pennsylvania Realtors, the median home price held steady at $299,900 in September, marking a 3.4% increase compared to last year. The situation is dire: for the first time since 2021, fewer than half of U.S. metro areas added construction jobs between August 2024 and August 2025.
“Construction employment has stalled or retreated in more and more areas as owners pull back on projects in the face of higher costs,” said Ken Simonson, chief economist for the Associated General Contractors of America.
Impact is widespread, with businesses like EXCEL Remodeling in Lemoyne reporting a drop in project backlogs from eight to ten weeks to nearly stagnation. Designer Brian Miller noted that while bathroom remodels remain popular, larger kitchen projects have declined significantly, stating, “It’s been challenging, to say the least.” He emphasized that customers are hesitant to spend on home improvements due to economic uncertainty.
Mike Klinepeter, president of Pyramid Construction in Wormleysburg, echoed these sentiments, stating, “It just feels like a very prolonged, extended process on projects getting started.” He pointed to difficulties in securing financing and a complex permit process as key obstacles. Each municipality in Pennsylvania has different timelines and requirements, complicating project initiation.
As a response, the Pennsylvania Builders Association, led by Harris, is advocating for streamlined permit processes to expedite construction efforts. However, builders are still reeling from escalating material costs, which have surged by 18% year-over-year since 2020. Tariffs imposed on timber, lumber, and kitchen cabinets have only exacerbated these financial pressures.
Homeowners, who previously utilized stimulus funds for renovations during the pandemic, are now holding back on larger projects. Harris remarked, “We got to a point where the excessive funds dried up and people couldn’t absorb that price increase.” The benchmark 5-year $30,000 home equity loan currently sits at approximately 8.13%, discouraging homeowners from pursuing renovations.
Looking ahead, Harris and Klinepeter suggest that 2026 may not bring immediate relief. Klinepeter warns that the ongoing partial federal government shutdown and Pennsylvania’s budget impasse could further delay projects reliant on government funding.
Despite the challenges, both Harris and Klinepeter remain hopeful. “They say 2026 is going to be a good year in the remodeling world,” Harris concluded. As the industry navigates these turbulent waters, the future remains uncertain, but builders are determined to adapt and overcome.
Stay tuned for more updates on this developing story as the Pennsylvania construction landscape evolves.
