Government reports show new home construction at the lowest pace since the early 1990s. Supply retailers and construction businesses are taking a hit.

A recent report by Lowe’s shows sales are off 24 percent, saying customers are putting off their home improvements. Local contractors we spoke with say they've seen a major slow down in business, too.

Scott Adams owns his own construction business and says this time last year business was much better.

“It's slow. It’s real slow for us. Hard to keep your men working,” Scott Adams Construction Owner Scott Adams said.

Jennifer Barnett recently moved into her new home and says she was only able to afford it by careful saving and setting a strict budget.

“Before we started, we looked at our finances, we knew what we wanted and we didn't want to go overboard. Just enough space to fit our needs,” Jennifer Barnett said.

Some people are just holding off on remodeling and building all together.

“Times are so hard and everything and all the prices went up so bad I just, people just, can't afford to do things like that anymore hardly,” David Lovins said.

Many say renovation is seen as an extra and paying for necessities comes first.

“I hope the economy picks up quite a bit and gas prices goes down, and people will start doing the remodeling,” Adams said.

While major chains report a decline in sales, managers at local supply stores like Home Lumber in Hazard and Surplus Sales in Corbin say their business is steady.

Lowe's CEO Robert Niblock says the overall economic outlook has deteriorated this month. Home owner Jennifer Barnett says getting energy efficient appliances has also helped her save on the costs that come along with building a new home.