Wood Framing in the US - Industry Market Research Report

Trussed up: Multifamily housing starts will be a boon to the residential construction market

The health of residential construction markets primarily impacts wood framing contractor performance. Through the end of 2023, wood framing contractors faced considerable volatility in the residential construction market. The outbreak of COVID-19 induced low-interest rates, spurring housing starts and spending on additions and alterations as consumers looked to push up the value of their homes to take advantage of the favorable pricing environment. On the other hand, nonresidential construction activity plummeted as work-from-home orders and social distancing measures sunk commercial construction spending. As the economy reopened and interest rates rose, the housing market slowed, greatly hindering wood framing contractors. Overall, industry-wide revenue has declined at a CAGR of 0.2% to an estimated $24.9 billion over the past five years, including 8.2% in 2023, as interest rate hikes sink housing starts.

Wood framing contractors are engaged in platform and balloon framing, fastenings, foundation laying, truss-framed and plank and beam construction, using wood-based products. Contracted work typically includes new construction, alterations, maintenance and repairs and additions. This industry excludes finish carpentry and framing using steel, precast concrete or nonwood products.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.