Custom Builder Weekly - Jan 14th, 2026

Wellness-driven bathroom trends | Custom starts edge higher | Smart home products featured at CES 2026

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Market and Trends

I just returned from Lightovation in Dallas: two days of showroom walks and panels with lighting designers, interior designers, and industry experts at the Dallas Market Center. One favorite tip: combat the 'black mirror effect' made by blank windows at night by illuminating the landscaping within view. More coverage on our time at Lightovation to come.

Until then, the January trend reports are here: NKBA's 2026 Bath Report positions the primary bath as a tech-supported wellness sanctuary, with clients prioritizing shower investments over bathtubs. Meanwhile, Houzz's Kitchen Trends Report showed open shelving losing ground to closed storage and butler's pantries, as clients increasingly favor functionality. We're also dipping into CES, which just closed out in Las Vegas, and some of the smart home debuts that caught our interest there.

—Pauline Hammerbeck, Editor

Signals: What We're Tracking

Google Earth Adds AI Tools to Track City Infrastructure

Google has added an AI layer to Google Earth that will show the condition of everyday city infrastructure—streetlights, fire hydrants, stop signs, and manhole covers.

Why it matters: This hints at a future where site conditions and constraints are clearer before design even begins.

Custom Starts Edge Higher

Custom home construction rose 6% in Q-3 2025 compared with the same quarter in 2024, with 51,000 starts, according to NAHB. Over the last four quarters, total custom starts reached 187,000, up 5% year over year.

Context: Custom now represents 19% of total single-family starts, down from 21% in 2023 and well below the 31.5% peak in 2009.

Microsoft Tries to Calm Backlash Over Data Center Boom

Facing pressure from local communities, Microsoft introduced a plan to reduce the impact of its expanding data centers. The company says it will absorb additional utility costs to avoid rate increases and replenish more water than its facilities use.

Why it matters: Communities have pushed back against data centers for straining power grids and water supplies. President Trump joined the fray, saying Big Tech needs to "pay its own way."

AROUND ENDEAVOR'S BUILDINGS & CONSTRUCTION GROUP

Philly Looks to Abandoned School Properties to Ease Housing Shortage. [Multifamily Pro]

Geothermal Goes Mainstream: Q&A With Jay Egg [Contracting Business]

7 Reasons Why Energy Star Still Matters [Pro Builder]

Remodeling Leaders Say AI is No Longer Optional—And It's Already Reshaping Operations [Pro Remodeler]

The Texas Builder Who Cracked the Code of Luxury Offsite—And Now Is Giving It Away [Custom Builder]

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