Housing Market Poised for Rebound

Pent-up demand and the need for improvements in the nation’s aging housing market portend a rebound in the U.S. housing market, according to Michael Collins, vice president of the Building Products Group at Jordan, Knauff & Company.

Collins, who spoke at the NFRC Summer Membership Meeting’s Opening Session in Chicago, told attendees that numerous signs suggest that the current housing crisis may be coming to an end.

“Four million net new jobs were created over the last four years and many renters are waiting on the sidelines” for the first sign that the economy is beginning to recover, Collins said. Combine that with aging homes and high energy prices, which will drive many homeowners to remodel with higher efficiency products – including doors and windows, and Collins said the stage is set for a recovery.

Conversely, the commercial market is beginning to soften, according to Collins, though unlike the residential market it will continue to grow – just more slowly than in the last several years.

“Commercial lags residential by about 18 months, so it’s coming into a bit of softness right now,” Collins said.

Collins also addressed Building Information Modeling, or BIM, saying that the technology will change the way that U.S. window and door manufacturers do business. Most prominently, Collins said, BIM will open up U.S markets to foreign companies and put pressure on U.S. companies to adopt BIM and compete.

“If you’re a commercial product manufacturer and you ever get spec’d by an architect, you’re going to want to be in there,” Collins said.

Collins also reported that the latest Jordan, Knauff survey of window and door manufacturers showed that NFRC was the most common certification, followed by ENERGY STAR(R).

Collins can be reached by e-mail at mcollins@jordanknauff.com.