The continued growth of the wood flooring segment has been driven primarily by increasing demand. Consumers continue to look for ways to improve and upgrade their homes, while making them more unique and personalized. They no longer simply want to "keep up with the Jones." They want homes that reflect their personalities. This desire drives the demand for a wider range of species, including exotics from other countries; a wider range of colors including custom stains and finishes; and a wider range of custom installations, including borders, medallions, mixed media and hand scraping.
All of these factors have resulted in higher wood prices. Wood flooring prices are estimated to have increased by 6.7 percent in 2004, while the producer price index rose by 10.7 percent. Despite the higher prices, U.S. consumers continue to increase their use of wood flooring, with the strongest growth occurring in the residential remodeling and residential new construction markets. Both of these markets continue to advance at a record pace.