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What a Difference 4 Months Makes: Big Shift in Building Product Sales Forecast

November 9, 2020 | Upper Marlboro, MD

New Outlook: More Housing, More Possibilities for Product Sales

In June of this year, Home Innovation published our 2020 Builder Practices Reports based on a survey of 1,400 home builders, conducted between January and April. Using the findings and NAHB Economics outlook on housing starts for the years 2020–2023, we published a forecast of building materials purchases for new homes. It showed a year-over-year decline in building materials purchases for 2020, reflecting the uncertainty in the new home construction market in the earliest days of COVID-19.

Fast forward a few months – big difference in the forecast. The expected sharp drop in new home construction did not materialize, despite restrictions on the economy to slow the spread of the disease. After a brief pause in construction, new home permit activity surged, and the pace of home construction became greater than before COVID-19. People were behaving in the opposite manner regarding homebuying than they had in past recessions.

In order to help building product manufacturers and suppliers better plan for future demand, Home Innovation has now updated our forecast of building materials purchases to reflect the far more optimistic pace of new home construction. For most categories, the revised forecast shows a whopping 20% or more increase of building products and materials sales.

Make sure you’re prepared to meet the unusual needs of the current market. Contact Ed Hudson, Home Innovation’s Director, Market Research, for a sample report for your product categories..

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ABOUT: Home Innovation Research Labs, located in Upper Marlboro, Md., is a full-service research, testing, and consulting firm determined to improve the quality, durability, affordability, and environmental performance of single- and multifamily homes and home building products – in short, we aim to perfect the home. Founded in 1964 as a subsidiary of the National Association of Home Builders (NAHB), our team has been integral in solving many of our client’s most difficult product and technology issues, and helping to introduce some of the most groundbreaking innovations in residential construction. Through an interdisciplinary research approach – including market research, building science analysis, laboratory testing, and standards development – we help to find a home for innovation in the residential construction industry.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "Home Innovation Research Labs." In subsequent mentions, "Home Innovation Labs” or simply “Home Innovation” are acceptable and accurate alternative references; we are not identified by an acronym. Prior to February 12, 2013, the company was known as the NAHB Research Center.