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Regional construction trends have seen vinyl siding have its market share eroded by stucco and fiber cement. Vinyl, the leading siding material in the United States for over a generation, is sill the preferred siding material in the Midwest and Northeast, but has been surpassed by stucco in other regions of the country. The Midwestern and Northeastern regions of the United States have also seen less robust advances in residential building activity over the past decade compared to other regions, according to Cleveland-based research organization The Freedonia Group.

Stucco is most often used in the South and West regions of the United States, which have seen the fastest growth in new housing activity and existing home sales over the past decade. Fiber cement has also emerged as a popular siding material choice in the past decade due to its ability to mimic natural wood looks while requiring less maintenance. The Freedonia Group analyst Matt Zielenski projects stucco and fiber cement's gains at the expense of vinyl to continue moving forward.

"The west is expected to see strong growth in new housing activity moving forward, which will further promote installations of stucco siding, particularly in those parts of the U.S. where a more Mediterranean style is preferred, such as Arizona and much of California," Zielenski said in a Freedonia Group news release. "Furthermore, both the south and west will see above-average advances in population and homes sales as people flock to these parts of the U.S. for the weather. Given that home improvements often occur before or soon after the purchase of a home, this will further support demand for stucco siding."

Despite the expected gains for stucco and fiber cement, Zielenski projects vinyl will remain a major player in the U.S. housing market. Vinyl offers a high level of durability for homeowners, an important consideration for consumers who may not want to replace their siding multiple times. Manufacturers of vinyl siding are also expanding their offerings to include more advanced products, such as cellular PVC siding—which can resemble natural wood—and insulated siding—which can boost a home's energy efficiency.

The Freedonia Group provides a more in-depth discussion of material trends and regionality in its Siding report, available for purchase from the organization's website.