Market news · October 23, 2026

Market note, October 23, 2026: slabs take the Great Lakes, basements keep shrinking

One solid item today. NAHB counted foundations under new homes: almost three in four sit on a slab, and in the Great Lakes states basements are no longer the most common choice.

73%

Share of new single-family homes started in 2025 built on a slab; basements fell to 16.4% (NAHB analysis of Census data, October 23, 2026)

NAHB, October 23: slabs 73%, basements 16.4%, crawl spaces 9.7%

Of single-family homes started in 2025, 73% were built on a slab, the same as in 2024, NAHB found in the Census Survey of Construction. Full or partial basements fell 0.6 of a point to 16.4%. Crawl spaces rose 0.5 of a point to 9.7%.

The change is regional. In the East North Central division (Ohio, Indiana, Illinois, Michigan and Wisconsin) slabs passed basements and now hold just over half of new homes; basements are at 43.0%. NAHB points to the cost advantage of slabs. Basements still lead in New England (67.7%), West North Central (64.4%) and the Middle Atlantic (48.7%). Slabs are almost everything in West South Central (97.7%), the Pacific (86.0%) and the South Atlantic (85.7%). In the Mountain division crawl spaces reached 20%, the most since 2007, while in the Pacific they fell from 45% in 2012 to 12%.

Why a small contractor should care: these are new homes, but they become your remodels in a few years. Fewer new basements in the Midwest means basement finishing will keep coming mostly from older houses. More slab homes means more bathroom and kitchen jobs where moving a drain means cutting concrete. More crawl spaces in the Mountain states means more work under the floor.

What to do this week

Ask the foundation type on the first call, before the site visit: slab, basement or crawl space. It changes how you plan any job that moves plumbing.
On slab homes, put a separate line for opening and patching the slab when a drain moves, and write in the estimate what happens if you find something under it. The client then sees it before the job, not as a surprise later.
If you finish basements in Ohio, Indiana, Illinois, Michigan or Wisconsin, aim your marketing at older neighborhoods, where the basements are.

Where WorkTime CRM helps with this

On an estimate, basement finishing is one of the ten trades with a market check under the total: a coloured strip shows whether your number is inside the local range, and the client never sees it. If something turns up under the slab during the job, a change order from the project goes to the client to sign.

Questions

Are basements disappearing from new homes?+

Slowly, not everywhere. Nationally they fell 0.6 of a point to 16.4% in 2025. They still lead in New England (67.7%) and West North Central (64.4%); in the East North Central division slabs passed them, with basements at 43.0%.

Why do builders pick slabs?+

NAHB names cost: slabs are cheaper, which has led to more of them in some northern divisions. Soil, frost depth and local code also matter; check with your local building department.

Where are crawl spaces growing?+

In the Mountain division they reached 20% of new homes in 2025, the highest since 2007. In the Pacific they fell from 45% in 2012 to 12%.

Sources

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