U.S. Building Finishing Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2025 - 2032)

U.S. Building Finishing Market Trends & Drivers

Rise of Eco-Friendly and Sustainable Finishing Materials Is a Trend

• As more people are concerned about the environment and climate change, they are choosing eco-friendly materials, such as recycled wood, bamboo flooring, and low-VOC paints.
• These materials reduce harmful emissions, which makes them attractive to environmentally conscious consumers.
• Another reason is that it improves indoor air quality, making homes safer for children and people with allergies, asthma, COPD, and other respiratory issues.
• Local and federal governments are creating stricter building codes and offering tax benefits for encouraging the usage of sustainable materials.
• This pushes builders and homeowners to use eco-friendly materials in order to meet legal standards and reduce costs.
• The 179D Commercial Buildings Energy Efficiency Tax Deduction allows commercial building owners to reduce expenses related to energy-saving improvements and sustainable finishing materials.
• Moreover, Maryland provides a tax credit for constructing green buildings, and California offers low-interest loans for energy-saving measures in public buildings.

Growing Demand for Home Renovation and Remodeling Projects Is a Growth Driver

• Homeowners are investing in repairs and updates, including new drywall, flooring, insulation, and painting, which is increasing the demand for finishing services.
• After COVID-19, the work from home lifestyle led people to redesign kitchens and living spaces, which increases the demand for finishing work, such as cabinetry, tiling, and interior design.
• According to the U.S. Census Bureau's American Housing Survey, homeowners spent USD 827 billion on home improvement projects between 2021 and 2023.
• Moreover, whenever people buy or rent a house, they have it renovated extensively to meet their preferences and bring out their personality.
• Repainting and retiling are common activities, while many also make structural changes.

U.S. Building Finishing Market Segmentation Analysis

Product Type Analysis

The flooring category held the largest market share, of 25%, in 2024, because every space requires flooring, making it a universal finishing product. The large floor surface areas in residential and commercial buildings drive high material demand. It is diverse and includes tiles, stone, wood, carpet, and much more, each serving different customer needs and budgets. Moreover, flooring requires constant repairing as it is the most-easily damaged.

The insulation category will grow at the highest CAGR, of 4%, during the forecast period. This is because federal and state energy codes require higher insulation ability in new buildings and renovations. Strong insulation drives down energy consumption for heating and cooling, thus offering sustainability and eligibility to LEED standards. Moreover, The Inflation Reduction Act and local incentive programs are supporting investments in home weatherization and commercial building retrofits.

The product types analyzed here are:

• Drywall & Plastering
• Flooring (Largest Category)
• Painting & Coatings
• Ceilings
• Doors & Windows
• Wall Coverings
• Insulation (Fastest-Growing Category)
• Cladding

Material Analysis

The stone & concrete category held the largest market share, of 30%, in 2024. This is because granite and marble are widely used for kitchen countertops and flooring, whereas concrete is used in decorative walls, facades, and floors of large and small buildings. These materials are highly durable and moisture-resistant. Moreover, they are popular in modern architectural trends as they favor industrial and minimalist aesthetics.

The vinyl & laminate category will grow at the highest CAGR, of 4.2%, during the forecast period. This is because it is a budget-friendly alternative to stone and hardwood and ideal for new construction and remodeling projects. They are also popular among DIY enthusiasts and landlords for rentals and flip projects, where budget and speed matter.

The materials analyzed here are:

• Wood
• Ceramic & Porcelain
• Vinyl & Laminate (Fastest-Growing Category)
• Glass & Metal
• Paint & Coatings
• Stone & Concrete (Largest Category)

Application Analysis

The residential category held the largest market share, of 50%, in 2024. This is because the rising number of housing units for single families, townhouses, and apartment complexes is driving the demand for drywall, cabinets, and paint. Moreover, there are still people who face a shortage of houses in Texas, Florida, and North Carolina. According to the U.S. Census Bureau, private residential construction spending exceeded USD 936.9 billion in January 2025.

The commercial category will grow at the highest CAGR, of 3.7%, during the forecast period. This is because offices are being redesigned for hybrid models after the pandemic, creating a high requirement for updates. Commercial spaces focus on aesthetics and durability to offer visitors and clients an overall better experience. This is the most prominent in hotels, shopping malls, and hospitals. Moreover, with a focus on ESG, commercial interiors are being upgraded with sustainable materials, low-emission paints, LED lighting, and advanced HVAC systems with matching finishes. According to the U.S. Bureau of Labor Statistics, employment in non-residential building construction is projected to increase by 5.9% from 2023 to 2033.

The applications analyzed here are:

• Residential (Largest Category)
• Commercial (Fastest-Growing Category)
• Industrial
• Institutional

End Use Analysis

The new construction category held the larger market share, of 60%, in 2024. This is because there are many ongoing residential unit and high-rise building projects ongoing in the country. In new builds, finishing is part of the full construction contract and is done at scale. This makes it easier for developers to source large volumes of finish materials and services from established suppliers.

The renovation & remodeling category will grow at the higher CAGR, of 5%, during the forecast period, as many buildings are decades old and need updates to meet the modern standards. People are choosing to remodel their houses due to the rise in interest rates, which is driving down house sales in the country. Moreover, remodeling jobs are quicker than the new construction, and they do not require a large investment, which attracts homeowners and business entities.

The end uses analyzed here are:

• New Construction (Larger Category)
• Renovation & Remodeling (Faster-Growing Category)

U.S. Building Finishing Market Geographical Analysis

The Western region held the largest market share, of 30%, in 2024. This is because large cities, such as Los Angeles, San Francisco, and Seattle, have many ongoing residential and commercial projects, which demand finishing for flooring, tiling, and paint. The tech boom also demands the construction of office campuses and luxury residential buildings, which require customized finishes. The West leads the U.S. in green building standards, including LEED-certified projects and energy-efficient renovations. Sustainable finishes, such as low-VOC paint and recycled flooring, are in high demand, helping to expand the building finishing market in the region.

The market in the Northeast region will grow at the highest CAGR, of 5.1%, during the forecast period. This is because redevelopment projects, such as turning industrial buildings into residential or mixed-use properties, require extensive finishing work, from new wall systems to modern bathrooms and kitchens. This region is seeing a growth in downtown areas with extensive interior finishing. States such as New York and Massachusetts are investing in public buildings, such as schools, hospitals, and transit hubs, which require good interior finishing.

The regions analyzed in this report are:

• Northeast (Fastest-Growing Region)
• Midwest
• South
• West (Largest Region)

U.S. Building Finishing Market Share

The market is fragmented because there are different types of finishes, such as flooring and painting, which different companies excel in. People want different types of finishing depending on their needs. For instance, coastal areas need moisture-resistant materials, while cold ones need stronger insulation, which encourages local companies to specialize in these aspects. Moreover, building finishes are a long supply chain process going from manufacturers to installers, each having different companies. It is easy to start a small company in this field, as every customer has its own needs.

U.S. Building Finishing Market News & Updates

• In April 2025, Turner Construction celebrated the grand opening of the USD 337-million Cedar Hill Regional Medical Center in Washington, D.C.
• In March 2025, Sika AG completed the acquisition of HPS North America Inc., which supplies building finishing materials in the U.S.