U.S. demand for residential roofing products is forecast to increase 4% per year to 147 million squares in 2020, valued at $10.4 billion, according to The Freedonia Group. Growth will be boosted by an increase in housing starts, which will benefit from homeowner interest in choosing products—such as laminated asphalt shingles, roofing tile and metal products—that offer enhanced aesthetics and long-term protection against leaks and impact damage.
The reroofing segment accounts for the vast majority of residential roofing demand. While weather-related activity plays a key role in generating replacement demand, the large stock of older homes in the U.S. is the main source of demand in this sector. A significant number of residences have roofs that are past their expected product lifespan. As a result, a large number of homes undergo roof repair or outright replacement every year. In addition, many homeowners put off reroofing projects during the 2007-2009 recession and its aftermath due to an unfavorable lending environment. Home renovations that were carried out tended to be those seen as providing a better return on investment. Through 2020, homeowners will respond to improved lending conditions and engage in previously delayed roofing projects.