A new Bank of America Merrill Lynch analysis sizes the building products and materials marketplace, and explores price drivers.
By John McManus | Builder
Curious to look at the math of how $55 billion in annual building materials expenses roll up and break down in the new-home market, account for a quarter of a home’s price tage, and add up to $105 billion in remodeling materials and products each year?
A new Bank of America Merrill Lynch report–“Who Builds the House”–subjects both the new residential and remodeling market places to a fascinating market “sizing” research exercise, aggregating and averaging data in such a way as to show a model for materials and products input costs. Although America’s thousands of home builders don’t buy, build, or model their businesses on averages, estimates, or aggregates, the analysis of 14 major product and materials component groups is helpful in revealing why all the fuss about price inflation pressures as builders work to subtract costs and offer lower-priced home models.