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US Housing Market Rebound Brings New Opportunities for Plastic Processing Companies

Plastmatch Global Digest 2025-08-26 13:53:34

According to data from the American Chemistry Council, despite regional differences, the single-family housing industry has still experienced a rebound.

Industry analysts indicate that new home starts will increase by 5.2% in July 2025, reaching 1.428 million units, the highest level since February. This represents a significant opportunity for plastic processors serving the construction market.

American Chemistry Council(ACC) reported these data in its weekly chemical and economic trends report.

In July 2025 housing data, chemically intensive single-family housing starts increased by 2.8%, while multi-family housing starts saw an impressive growth of 11.6%. Compared to a year earlier, total housing starts rose by 12.9% year-over-year, leading to increased demand for plastic building products.

Industrial Association（PLASTICS） Chief Economist Dr. Perc Pineda stated: “Residential construction is a major market for plastics, which are essential for producing products such as pipes, insulation materials, siding, windows, and other residential construction applications.”Crucial.

According to the 2024 Scale and Impact Report by PLASTICS, of the $426.7 billion final demand for single-family residential structures last year, $6.7 billion was attributed to plastic content, highlighting the importance of this industry to processors.

The regional performance of the real estate market presents challenges and opportunities for plastic manufacturers. While growth is observed in the southern region, declines are seen in other areas, suggesting that processors may need to adjust their production and distribution strategies accordingly.

Despite positive data on new home starts, the ACC report states that forward-looking building permits declined by 2.8% through July 2025, marking the fourth consecutive month of decline, indicating potential headwinds. Compared to last year, permits fell by 5.7%, which may impact future demand for construction plastics.

In addition, the ACC report states that the correlation between building materials manufacturing and plastics product manufacturing remains strong (r = 0.81), highlighting the important role of plastics in residential construction and the significance of housing market indicators for processors.

Looking ahead, given the current performance, ACC's previous forecast for new housing starts appears to be outdated. Housing starts in July 2025 have reached 1.428 million units. Processors should monitor the latest forecasts while identifying opportunities in the renovation and remodeling market.

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US Housing Market Rebound Brings New Opportunities for Plastic Processing Companies

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