Blog | HIRI

Doors Market Expectations and Trends in Installation and Replacement Activity

Written by HIRI | Jan 23, 2024 5:15:00 AM

The door market was one of the most challenged sectors of the home improvement industry during the demand spike in 2021. Over the past couple of years, we’ve witnessed decreases in spending and purchase incidence rates for products in this particular category.

However, with the shrinking housing market, and more homeowners renovating and repairing their current property to fit their evolving needs and lifestyles, the demand for doors is expected to remain steady.

Additionally, reporting shows that shoppers are less concerned about price in recent years and more focused on convenience and finding the exact product they need or want for their installation or replacement project.

What is the State of the Market for Doors?

According to HIRI’s U.S. Home Improvement Products Market Forecast, the market for doors and molding increased 10.7% from 2018 to 2022, before dropping to 9% in 2023. However, if you take into account inflation, the adjusted decrease was closer to 3%. Looking ahead to 2024 to 2027, the market is projected to recover slightly.

The average annual number of purchases in the doors, windows and millwork category—as a whole—increased from 2.3% in 2019 to 2.9% in 2022, and the spend more than doubled to $1320, up from $604 in 2019.

Homeowner product purchase incidence rates have increased approximately 2% over the past few years in a number of relevant product categories, including exterior doors, molding, storm/screen doors, and interior passage doors. Patio doors have seen the sharpest recent increase, from 1% in 2017 to 5% in 2021.

When it comes to the pro market, entry doors consistently have the highest purchase incidence rate. Roughly 39% of contractors bought this type of product in 2022—the same rate we saw in 2021, according to findings in HIRI’s 2023 Contractor Product Purchasing Incidence report. Patio doors have seen slight increases over the past couple years, even if not quite matching incidence rates from 2019. However, purchases for closet doors and interior passage doors experienced decreased purchase incidence rates in both 2019 and 2021.

For the most current data, stay on the lookout for HIRI's update to the Product Purchase Tracking study, will be available to HIRI members in Q3 of 2024. To stay informed when this updated report is released, simply subscribe to updates below:

Changes in Spending on Doors

Entry doors have the highest annual spend, although spend decreased from $1,000 in 2019 and 2021 to $600 in 2022. Spending for other door products—including closet doors, interior passage doors, patio doors, and storm doors—also has decreased since 2021.

For the retail market, we’re seeing some similar trends among homeowners, according to HIRI’s 2022 Home Improvement Retail Selector. In 2022, all varieties of door products studied had an increased purchase incidence compared to 2020, except for storm/screen doors. The median amount spent on door-related products was about $300.

It’s also worth noting that the majority of these projects are still funded by cash on hand and savings (75%), although that number is down from 83% in 2015. Bank credit cards appear to be slowly increasing as a go-to resource (17% in 2023 from 11% in 2015). Additionally, since 2019, more homeowners have been funding front entrance projects using various forms of credit lines, whether it be a bank credit card or store credit card. This trend is inline with overall trends that HIRI studies across the entire home improvement industry.

Top Purchase Drivers for Doors

The average age of the existing housing stock in the United States is over 40 years old, which creates momentum for repair and replacement activities. As a result, these types of projects help drive door purchases.

Research from HIRI’s 2022 Product Purchase Tracking Study shows that roughly 72% of homes for which doors and similar items were purchased went to existing residences, rather than newly built homes. About one in four homes were more than 51 years old, and another 30% were between 26 to 50 years old. About 33% of customers had been in their home upward of 21 years; another 48% had lived in their home between 5 and 20 years.

As we can see, the “lock-in effect” of high interest rates—as well as a shortage in the housing supply—is keeping existing homeowners in their homes, creating a ripe market for repair and replacement activities.

Seasonality also seems to play a role in when and why various types of doors are purchased by both homeowners and professionals. For example, the highest percentages of patio doors (33.5%), storm/screen doors (38.9%) and closet doors (a whopping 48.3%) were purchased in the second quarter of the year in 2022, while the highest percentage of exterior doors (39.4 percent) were purchased in the third quarter.

This is corroborated by findings from HIRI’s 2023 Project Decision Study for front entrance improvement. Although it pertains exclusively to activity around entryways, it reveals that homeowners typically start thinking about projects between January and March, and most projects are started between April and August. Less activity happens during the end of the year. About 27% of homeowners also cited weather/season/timing in terms of what prompted the start of their front entrance project.

Data from 2023 data on product purchases in the doors, millwork and windows category will be available to HIRI members in Q3 of 2024. Learn more about becoming a member to get this research:

What Factors Influence Product Choices for Homeowners and Pros?

In 2022, about 39% of home­own­ers com­plet­ed door instal­la­tions them­selves, while 63% of projects involved a con­trac­tor. The over­lap, cor­rob­o­rat­ed by oth­er HIRI find­ings regard­ing an increase in col­lab­o­ra­tion projects, indi­cates projects where both home­own­ers and pro­fes­sion­als worked togeth­er to com­plete the project. In gen­er­al, from 2014 to 2022, we’ve observed an over­all decrease in pure­ly DIY door projects, with con­trac­tors doing the work a high­er per­cent­age of the time and BIY” instances increas­ing, where­by the home­own­er shops for and pur­chas­es all mate­ri­als, and only hires a Pro for the installation.

Gen­er­al­ist pros account for more sales than spe­cial­ist pros across all door prod­ucts. For exam­ple, about 54% of gen­er­al­ists pur­chased an entry door for a project in 2022, com­pared to 19% of spe­cial­ists. The annu­al spend is also high­er for gen­er­al­ists ver­sus spe­cial­ists for most door cat­e­gories, except for patio doors. 

In 2022, only 21% of door projects were for new con­struc­tion. Pri­mar­i­ly, doors were pur­chased for home main­te­nance or repair projects, room remod­els, and indi­vid­ual replacements.

Changes in Channel Motivations for Doors

It’s impor­tant for man­u­fac­tur­ers and retail­ers to keep in mind that pros and home­own­ers have dif­fer­ent pur­chase moti­va­tions — and there have been some notable changes in those moti­va­tions over the past cou­ple years.

Key­ing in on moti­va­tions for pur­chas­es made for front entrance improve­ment projects, as uncov­ered in HIR­I’s 2023 Project Deci­sion Study, cus­tomers report an attrac­tive appear­ance is the No. 1 fac­tor behind choos­ing a par­tic­u­lar mate­r­i­al or prod­uct. Being long-last­ing was a fac­tor for 57% of con­sumers and price was a fac­tor for 47%. Of note, hav­ing a good selec­tion of prod­ucts has jumped from 7% in 2014 to 22% in 2022. 

Over­all, there is indi­ca­tion that home­own­ers know what kind of look they want when pur­chas­ing doors and will put in the effort to find where to get that spe­cif­ic style.

This is fur­ther evi­denced by the fact that home­own­ers did not cross-shop as fre­quent­ly in 2022 as they did in 2020 — or 47% of the time, com­pared to 54%. When they choose to not pur­chase from a spe­cif­ic retail­er and instead move to the next, about half the time the rea­son is the sup­pli­er didn’t have the size/​color/​style/​etc. of the prod­uct they want­ed. Not hav­ing the prod­uct in stock is anoth­er big dri­ver for cross-shopping.

Good ser­vice has stayed rel­a­tive­ly the same in terms of impor­tance for retail­er selec­tion. How­ev­er, con­ve­nience of loca­tion con­tin­ues to be the top rea­son for why home­own­ers buy from a giv­en supplier.

 

Mean­while, we know the pro mar­ket has been strug­gling with an over-extend­ed sup­ply chain over the past few years, a top­ic addressed by Ken Pin­to, Own­er of Ken­zai USA, dur­ing his pre­sen­ta­tion at the 2023 Home Improve­ment Insights Sum­mit.

Dif­fi­cul­ties aris­ing from ship­ping con­tain­er logis­tics and oth­er short­ages made it hard for man­u­fac­tur­ers, retail­ers, and oth­ers in the home improve­ment indus­try, many of whom have to make deci­sions far in advance in terms of how many com­po­nents and raw mate­ri­als to pur­chase. Mean­while, con­trac­tors expe­ri­enced long delays on job sites as they wait­ed for prod­ucts to arrive. 

From the out­side, the sup­ply chain seems to be improv­ing, but Pin­to cau­tioned that numer­ous cur­rent sociopo­lit­i­cal and eco­nom­ic fac­tors could cre­ate a sim­i­lar grid­lock. Those who took notes from the issues that arose dur­ing the ear­ly 2020s will be poised to bet­ter con­front pos­si­ble short­ages in the future.

Two pieces of advice he had for man­u­fac­tur­ers and ven­dors were to inten­tion­al­ly work on build­ing rela­tion­ships — which can affect how and when you get the com­po­nents and mate­ri­als you need — and to focus on devel­op­ing prod­ucts that are not only easy to install, but dif­fi­cult to install incor­rect­ly. This will help address instal­la­tion com­pe­ten­cy degra­da­tion and ensure ade­quate qual­i­ty on job sites. 

Gaining Insights into Future Trends with HIRI Research

From doors, win­dows and mill­work to oth­er prod­uct cat­e­gories, hav­ing the right data and insights can help build­ing prod­uct man­u­fac­tur­ers and retail­ers adjust to cur­rent trends and upcom­ing fore­casts. HIRI’s reports and stud­ies, which are avail­able to all HIRI mem­bers, cov­er a wide range of rel­e­vant top­ics, from con­sumer behav­iors among DIY­ers and pro­fes­sion­als to key dri­vers in the home improve­ment marketplace.