2007 Media Releases & Alerts
New NAHB Research Center Study Explores Builders' Expectations for
Manufacturers in Soft Housing Market
February 7, 2007, Orlando, Fla. - To help manufacturers navigate the
changes occurring within the current soft housing market, the NAHB Research
Center conducted an in-depth study of builders' changing expectations for
product manufacturers and how that could affect the way those manufacturers do
business. An exclusive preview of the study's findings was presented at an
invitation-only event held during the International Builders' Show (IBS). The
full report, Implications of the Soft Housing Market for Suppliers of Building
Products, will be available for purchase from the Research Center
during the spring 2007 grand opening of its new state-of-the-art laboratory and
market research facility.
During the 2004-2005 housing boom, the U.S. home building industry operated at a
level unsustainable by new household formation. Double-digit annual
appreciation rates of homes drew investors into the market, increasing demand
for housing and fueling overproduction. Throughout this period, housing
industry experts maintained that there would be a necessary market correction
back to more moderate levels.
Seeing these market factors in play, the Research Center initiated a robust
study in late 2006 to capture the attitudes of home builders in this new
business environment. Combining qualitative research, a series of national
focus groups, and a subsequent nationwide survey of builders - both production
and custom - the Research Center sought to reveal not only the potential
challenges ahead, but also what opportunities might be available.
Key information gathered from builders centered on how their expectations for
manufacturers have changed and the resulting effects on material usage and
selection, adjustments in their internal operations and purchasing decisions,
interest in product innovation, and their reactions to the changing
expectations of home buyers in this down market.
Housing economy experts estimate the current home building climate is likely to
continue through 2007 with some change of a very gradual rebound expected later
this year. Key findings of the Research Center study indicate that since the
downturn in early 2006, home builders have made numerous changes to the way
they operate. Accordingly, manufacturers who understand the market fluctuations
and act quickly to make adjustments to their product, distribution, marketing,
and sales strategies can see short-term sales improvements and be better
positioned for the housing market rebound.
For more information on this internally-funded NAHB Research Center study or
other ongoing market research projects, call (800) 638-8556, or visit
www.nahbrc.com.
2/07
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