AFPM ’25: Economic uncertainty delays further US housing rebound

SAN ANTONIO (ICIS)–Uncertainty about the US economy is delaying what could be a further rebound in housing activity, the CEO of Huntsman said.

“It’s not that we are seeing seasonal demand recovering. We are,” said Peter Huntsman, CEO of Huntsman. He made his comments in an interview with ICIS on the sidelines of the International Petrochemical Conference (IPC), held by the American Fuel & Petrochemical Manufacturers (AFPM).

But a larger recovery will require more certainty, he said. Consumers will be more reluctant to buy a house during volatility in the stock market. Possible tariffs and changes in the outlook for monetary policy are also contributing to the uncertainty.

Additional uncertainty surrounds mortgage rates.

Although rates for 30-year home loans have declined from earlier in the year, they are still well above levels seen in the previous decade.

Some may be delaying purchases in the hope that mortgage rates return to those lower levels.

Meanwhile, existing homeowners who bought their houses with low-interest mortgages are reluctant to sell because they will have to finance their purchase with a loan bearing a much higher rate.

Overall, uncertainty will delay a further rebound in housing activity, Huntsman said. “I think we’re going to see a late start.”

That said, the conditions exist for a housing recovery.

Huntsman said the US has a large backlog in housing because of population growth and years of under-construction.

New housing is a key end-use market for chemistry in the form of paints, wire insulation, house-wrap, sealants, roofing materials, resilient flooring, vinyl siding, and related products.

New housing also generates sales of appliances, furniture, carpet, fixtures, and window treatments. In total, each start engenders on average over $13,000 worth of chemistry.

Existing home sales generate sales of chemistry through purchases of paints and coatings, new furniture, carpet, resilient flooring, window treatments, appliances, and fixtures. In architectural coatings, about 80% of sales are tied to existing home sales.

Huntsman makes polyurethanes, epoxy resins and maleic anhydride (MA), a key feedstock in unsaturated polyester resins (UPR).

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 23-25 March in San Antonio, Texas.

Interview article by Al Greenwood

Thumbnail photo source: Shutterstock

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