One in Six: Concrete Homes Increase Market Share
Cement consumption trend. Source: PCA’s U.S. Monitor, October 2006.
In 2005, concrete homes accounted for 17.9% of all new single-family detached homes, up from 16.3% in 2004, according to recent research from the National Association of Home Builders (NAHB) and Portland Cement Association. “More than one out of every six new houses built last year utilized an above-grade concrete building system,” says Craig Schulz, market research director for PCA.

The different concrete wall systems comprising the 17.9% share are:
• Masonry—Concrete masonry units form the basic structure of the home.
• Insulating concrete forms—ICFs blocks or panels of polystyrene create stay-in-place forms for fresh concrete.
• Removable concrete forms—Forms, typically aluminum, are filled with concrete to create walls, and then removed once the concrete hardens.
• Precast concrete panels—Walls are cast off-site, then assembled in large sections at the job site.
• Autoclaved aerated concrete—AAC lightweight units or panels are mortared together to build fire-resistant, well insulated walls.
Reconstruction is Key to Current Growth
In recent years, American homeowners were subjected to some of the most severe natural disasters the U.S. has ever experienced. Thousands of homes were destroyed by hurricanes, tornadoes, and floods. When it came time to rebuild, homeowners increasingly chose the one building material that offered the best value: durability, energy efficiency, and protection from storms, floods, and fires—concrete. And new concrete homes offer another lesser-known benefit: Insurance premiums are often 15% to 25% lower than for wood frame homes owing to concrete’s strength and durability.
Despite Housing Drop, Cement Intensity Increases

Expected to Soften Decrease in Cement Consumption?
The PCA fall 2006 forecast does not expect the sharp decline in housing to continue at the current rate. PCA’s Chief Economist Edward Sullivan says the recent downward change in the housing market was driven by the departure of speculators from the market. Their exit will actually help introduce a correction to housing prices and improve affordability for the average homebuyer.
According to Sullivan, the decline in the housing industry and softer overall economic conditions are flattening the cement market, but he believes "code changes in hurricane-prone regions, improved concrete products, and concrete’s growth as a 'green' building material will all contribute to 2% increased cement intensities (forecast) in 2007, despite the decrease in construction activity."
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