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Metal in a Rising Tide

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Where is the hottest residential market in country right now? Phoenix, if you can believe it. Phoenix was may not have been the epicenter of the housing industry collapse, but was right on the edge. Today the market is making a strong comeback. Why?

There are a couple of reasons, one of which is very important for metal building products. The affordability rate for home buyers in Phoenix is nearing all-time lows. That means the combination of home costs and borrowing rates has made purchasing a home more affordable than it ever has. Back to this in a moment.

The other reason is the there has been a huge influx of investment dollars-much of it European-looking to buy distressed properties on speculation that the value will increase. So there is a sense of urgency to buy, which moves buyers into the market, creating demand.

How does this relate back to the use of metal building products in residential construction? For the most part, homebuyers have to pay a premium for metal building products, whether it's light-gauge steel framing or metal roofing or other products. They just tend to cost more than their alternatives. With affordability at low rates, now is a ripe time for suppliers to encourage builders and remodelers to make the shift to metal and add value to the home.

Contractors can differentiate themselves in the market place, sell the premium costs more easily when affordability is at such a low rate and-through increased demand-systematically begin to bring down the overall costs.

Metal building materials have a great story in residential construction. Now is the time for the industry to push its way through the door and get contractors to start specifying and buying metal. As the residential industry revives, metal can establish an even stronger foothold.

After all, Phoenix is coming back from the ashes. It's inevitable housing will return.

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