Our latest Q2-2025 Farnsworth Contractor Index is now available and reveals a shift in sentiment among professionals serving the existing home market. With data collected in early April 2025 from roughly 600 contractors, the findings reflect a growing unease that has expanded from the homeowner to the professional.

Optimism Dips Across the Board

Contractors across all trade segments reported a decline in their outlook for generating new business over the next six months. While confidence hasn’t disappeared entirely, it has observably weakened. In fact, the average score contractors gave when asked about their near-term business outlook dropped to 7.3 out of 10, one of the lowest figures recorded in the past four years.

This tempered optimism is echoed in declining expectations around revenue. Fewer professionals now anticipate year-over-year gains in revenue or increases in project-level revenue compared to what we heard just a year ago.

Backlogs Hold, But Lead Volume Declines

Interestingly, project backlogs remain steady compared to this time last year. That consistency might suggest contractors are still busy today—but looking ahead, their concern is mounting. One potential driver: lead volume has softened, marking the second consecutive quarter of decline. Notably, lead volume came in below levels reported one year ago.

Material Availability and Pricing Volatility Present Challenges

Another pressure point among Pros is the availability of materials, which had been on a path to recovery in previous quarters. Now, for the first time in several quarters, all contractor segments report a softening in availability, with levels dipping below where they stood in Q2 last year.

Adding to that strain is a resurgence in price volatility, further complicating project planning and profitability for contractors. For more insights, download the full report:

Looking Ahead

While most professionals are still more confident than they are pessimistic, the overall tone among this building products customer segment has shifted. Homeowners are entering new sales cycles with increased caution, and pros are beginning to feel the ripple effects. In an industry where conditions can change by the day, it’s never been more important to understand the shifts in homeowner attitudes and behaviors.

In a no-growth or low-growth market, market share becomes the battleground. And that’s where The Farnsworth Group can help—by delivering custom insights into how, where, when, and why your customers are making decisions, helping you inform smarter strategies.