An uptick in renovations nationwide is likely to provide a positive shock to the siding and exterior trim market, as many homeowners are choosing not to move as home prices rise. The desire to renovate coupled with aging existing siding and trim will drive continued growth in the market.
Last year, Principia Consulting estimated that, nationwide, the average age of siding at replacement was 16.1 years—much lower than it has been in recent years. Among high-value homes—those valued at $450,000 and above—the average replacement age of siding was 13.4 years. Lower replacement ages could have a positive impact on the yearly demand for siding and trim products. In addition to age of the current siding, many high-value homeowners are choosing to replace their siding because of a desire to change aesthetics or to upgrade existing products.
“Some of these other discretionary items [such as aesthetics or upgrades], those are the ones that are appealing to manufacturers, because homeowners choose to replace 3 to 5 years sooner [for those reasons] than if they were replacing for just age,” said Casey Olson, an industry analyst at Principia Consulting.
