High interest rates and uncertainty surrounding President Donald Trump’s plans for tariffs and mass deportations are biting into demand for US home improvements, the latest signs of a tepid housing market.
Shares of Jeld-Wen Holdings, which sells residential doors and windows, tumbled 6 per cent on Friday to a record low of $5.50. In an earnings report last month, the company forecast revenues would drop 4 to 9 per cent for 2025 compared with last year.
The shares sank despite chair David Nord buying $119,000 of the company’s stock this week, a move often seen by investors as a sign of confidence.
Shares in AO Smith and BlueLinx, which sell water heaters and plywood respectively, have also dropped to the lowest levels since late 2023. Earlier this year, AO Smith forecast flat to modest sales growth for 2025, while BlueLinx warned about continuing uncertainty over the timing of a sustained housing recovery.
Yes, and don’t forget the inflation squeeze. Lower half of the middle class finds cost of living rising faster than income. They are cutting back on optional spending to make ends meet. Eating out less often. Trimming vacation spending. Etc. Not a good time to do a big remodelling project.
It’s never a good time to do a “big remodeling project”. Projects with a positive investment return tend to be small bore stuff like replacing the garage door.
I did my first capital project last November in my 12 years of home ownership – $160 for a storm door.
intercst
Last week the big dog, Home Depot, reported earnings and, IIRC, did not show problems.
DB2
I hope their earning trickle down to their suppliers.
While Lowe’s & Home Depot have had good results lately (I think, I don’t follow them)m I remember how the skyrocketing price of lumber during the pandemic crashed everything, at least for a while.
Well. Maybe - here we go again:
Trump Picks Another Trade Fight With Canada Over LumberThe president initiated an investigation that could lead to tariffs on lumber imports, nearly half of which comes from Canada.