Rising Housing Market Bodes Well for the SPF Industry
New housing through 2017 is projected to increase 3.3 percent annually worldwide.
By Juan Sagarbarria
CLEVELAND, OH – November 8, 2013 – After a significant downturn in the housing market fueled by the economic meltdown, things have not only improved, but they are projected to continue improving as housing construction is now on the rise. According to "World Housing," a recent issued market report by Freedonia, residential construction is expected to reach 60.9 million units by 2017. The projected 3.3 percent annual increase in new construction might positively impact the spray polyurethane foam industry as more homeowners and construction contractors become educated on the energy-efficient and protective benefits SPF provides.
The study stipulates that residential construction can reach annual gains of 8.9 percent in North America, which counters the 8.2 percent loss seen in the 2007-2012 period. Additionally, multifamily units are anticipated to surpass construction of single-family units globally through 2017. This multifamily boom, per the Freedonia study, is spawned by increasing urbanization in developing countries. With multifamily being constructed, a margin for damage and maintenance is generated automatically.
With this prevalent comeback in housing, homeowners will be inclined to maximize their investments by taking proper steps to lower their home's energy consumption, and improve the structural integrity of the building's envelope. Because spray foam is known for positively benefitting the building envelope of the home and reducing energy consumption, as well as improving the indoor climate, it's not a far-fetched notion that the SPF industry will continue growing as more homes are constructed.
According to the study, the rise in housing construction will differ by region. The strongest growth will be seen in the Asia/Pacific and Africa/Mideast regions, which will account for 80 percent of the world's new home construction. Furthermore, Freedonia reports that several countries such as the United States, Spain, and Italy is expected witness double-digit annual increases in new housing construction.
About Freedonia: The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. Our industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product and market forecasts, industry trends, threats and opportunities, competitive strategies, market share determinations and company profiles.