Hardwood Floors October/November 2024

Expectations for 2024 were more muted. The election year is at the top of many members’ minds, and some respondents say they are seeing a slight softening in the market. The latest Leading Indicator of Remodeling Activity (LIRA) from the Joint Center for Housing Studies of Harvard University, released in July 2024, forecasted annual expenditures for improvements and repairs to owner-occupied homes to decrease this year and into the first quarter of 2025 – but at a slower rate than initially forecast. Remodeling spending is anticipated to tick up through mid-year 2025. In 2023, we saw cooling in single-family home building due to higher interest rates and construction costs. In June 2024, privately owned housing starts were 4.4 percent below the June 2023 rate. A limited amount of existing inventory and pent-up demand have fueled single-family construction, according to the National Association of Home Builders. Conversely, multi-family construction shows signs of slowing from last year’s highs; multifamily starts were down sharply in June. Low inventory of existing homes will continue to encourage new construction at a slower pace. CONTINUED SHIFT TO NATURAL WOOD COLORS AND FINISHES Nearly 66 percent of NWFA members expect increased demand for cleaner, more natural wood colors in 2025. White oak remains a dominant selection. “White oak has been in demand for the last few years and doesn’t look to be slowing down. People want white oak with a natural finish,” said Thomas Buxton, sales manager at Mountain Craft Wide Plank.

Several respondents said consumers are demanding: • Longer, wider boards • Engineered wood flooring • Matte sheen • Locally produced

2025 EXPECTED SALES GROWTH

Expectations for 2024 were more muted. The election year is at the top of many members' minds, and some respondents say they are seeing a slight softening in the market.

19

Up significantly (8%+)

43

Up somewhat (3 to 7%)

32

About the same (-2 to +2%)

5

Down somewhat (-3 to -7%)

1

Significantly down (-8%+)

5%

0%

15%

10%

35%

25%

55%

30%

45%

20%

50%

60%

40%

the magazine of the national wood flooring association

43