An article published last week titled “Aging Housing Stock Bodes Well for Remodeling: National Association of Homebuilders (NAHB)” highlights how the nation’s aging housing stock, combined with insufficient new-home inventory, signals that the remodeling market “is poised for future growth.” With mortgage rates remaining high but high home values fostering significant equity for many, the trend of remodeling versus moving is likely to continue.
Recent data, the NAHB noted, indicates that nearly half of the owner-occupied homes in the U.S. were built before 1980, and have climbed to a median age of 41 years. “The aging housing stock continues to drive remodeling projects, as homeowners are increasingly choosing to tap into their home equity and invest in improvements rather than relocate, creating long-term growth prospects for the industry,” said NAHB Remodelers Chair Nicole Goolsby Morrison.
From 2020 to 2023, new construction added nearly 2.6 million owner-occupied homes, which accounts for only 3% of the total owner-occupied housing stock, the NAHB said. Relatively newer homes built between 2010 and 2019 accounted for about 9% of the nation’s housing stock, while dwellings constructed between 2000 and 2009 made up 15%. In contrast, roughly 48% of owner-occupied homes were built before 1980, including 35% built before 1970.
So, how is this an opportunity? For those remodeling, they do not want to be displaced for an extended period. Companies that have, in stock, cabinets, doors, interior trim, hardwood flooring, and other related items, and can align themselves with fabricators and contractors who can stay on time with minimal disruptions, will realize profits where service can outweigh price. The key will be for distributors and manufacturers to align themselves with vendors who can deliver on time, every time, allowing them to stay on schedule. Remodeling projects present scheduling challenges, where each step depends on the one prior, with limited space for material storage, and timelines that consumers demand, as they are accustomed to living in their own homes and want to complete the job as quickly as possible. We think Cascade excels in this type of market. We take great pride in shipping the vast majority of our orders on time and do not mind highly mixed truckloads that include all the thicknesses, grades, and lengths needed by contractors committed to on-time projects.
