by Corinne Gangloff
June 15, 2021
It’s not just the lumber shortage driving up new home prices.
In addition to a hot real estate market, a related boom in building activity in the US is driving a surge in demand for a range of building materials – from drywall and concrete to paint, pipes, and wires – that suppliers can’t get to builders fast enough. As a result, prices for these and other materials frequently used in new housing construction are rising, adding significantly to the final cost of newly built homes.
Though less severe than lumber, cement and concrete products have seen an outsize impact of these building trends, with prices rising substantially over the course of the pandemic and reaching a record level in April. That’s in part because, like lumber, no other material competes effectively with concrete in key homebuilding applications, notably foundation slabs. It is also widely used in outdoor living installations like patios, pools, and outdoor kitchens – all popular home improvement projects, which exploded in number during the pandemic.
The pricing spike is expected to be only temporary, however; as demand abates somewhat and suppliers catch up, prices for concrete and other building materials will come back down.
A new Freedonia Group analysis projects global demand for cement to rise 2.9% per year to 4.7 billion metric tons valued at $340 billion in 2025. The relatively restrained pace of growth will be due to slow projected expansion in the dominant Chinese market. If China is excluded, the global cement market is expected to expand 5.3% yearly, supported by:
Want to Learn More?
Global Cement is now available from the Freedonia Group. This study examines the global market for cement by type, market, and end user. Historical data for 2010, 2015, and 2020, and forecasts for 2025 and 2030 are provided for cement demand in metric tons.
Cement types are:
In addition, demand is analyzed by market:
Cement demand is also analyzed by end user, such as:
Provide the following details to subscribe.