For years, stocking siding was pretty straightforward. Vinyl was the clear leader, becoming the go-to choice for builders across the country. At its peak in 2001, vinyl siding was used on nearly 40% of new single-family homes.
But that is no longer the case.
In 2026, the siding market looks much different. According to the latest data from the National Association of Home Builders (NAHB), vinyl, stucco, and fiber cement are now competing closely for the top spot.
For LBM dealers, this shift creates both challenges and opportunities. With higher costs, changing builder preferences, and a slower new construction market, understanding what products are gaining ground can help dealers make smarter inventory decisions and protect profits.
The Big Three Siding Materials Are in a Close Race
The days of one siding material dominating the market are over.
For homes started in 2025, no single siding category captured more than 28% of the market. Instead, three major materials are now competing:
- Vinyl Siding: 27.7%
- Stucco: 24.1%
- Fiber Cement: 22.6%
- Brick / Brick Veneer: 16.8%
- Wood / Wood Products: 5.9%
Vinyl still holds the top spot nationally, but the gap between materials has narrowed significantly.
For LBM dealers, this means a one-size-fits-all inventory strategy no longer works. Product demand depends heavily on location, home size, and the type of builders you serve.
Fiber Cement Continues to Gain Ground
One of the biggest long-term trends in exterior building materials is the growth of fiber cement.
Over the past 25 years, fiber cement has gained nearly 20 percentage points of market share as more builders and homeowners look for durable, low-maintenance options.
Why is fiber cement growing?
- Larger Homes: Fiber cement is especially popular on larger homes, particularly those over 3,000 square feet.
- Regional Growth: In some areas, fiber cement has moved ahead of traditional materials. In the Mountain region, it recently passed stucco with about 42% market share.
- Durability: Builders are increasingly focused on products that can handle harsh weather, reduce maintenance, and meet stricter building requirements.
Location Plays a Major Role in Material Choice
National numbers only tell part of the story. Siding preferences can vary dramatically depending on where a dealer operates.
Vinyl Remains Strong in Northern Markets
Vinyl continues to dominate many northern and Midwest markets, especially for entry-level and mid-priced homes.
- Middle Atlantic: 73% market share
- New England: 72%
- East North Central: 71%
- West North Central: 47%
Stucco Leads in Warmer Regions
Stucco remains a major player, especially in higher-end housing markets.
- Pacific Division: 65% market share
- South Atlantic Division: 33%
It remains a popular choice for larger, more expensive homes in warmer climates.
Brick Remains Strong in the South
Brick has declined nationally over the years, but it remains a major player in certain regions.
In the West South Central region, brick and brick veneer still account for about 54% of homes.
This shows why local market knowledge is critical. A product that is slowing nationally may still be a top seller in a specific region.
Economic Conditions Are Changing Builder Decisions
Material trends are only part of the story. The current economy is also influencing what builders and homeowners choose.
Higher Freight Costs Matter
Transportation costs continue to impact heavier products like brick and stone. Rising fuel costs can make these materials more expensive to move and store.
Lighter materials may offer dealers and builders more flexibility when managing costs.
Builders Are Being More Careful
Higher mortgage rates and slower housing activity have made builders more cautious.
With fewer new homes being built, dealers are looking for ways to maintain sales and improve efficiency.
Remodeling Is Creating New Opportunities
While new construction has slowed, remodeling remains a bright spot.
Many homeowners are choosing to improve their current homes instead of moving. Exterior upgrades, including siding replacements, are benefiting from this trend.
For LBM dealers, remodeling contractors represent an important opportunity for growth.
How LBM Dealers Can Adjust Their Strategy
Match Inventory to Your Local Market
National trends are helpful, but local demand matters most. Dealers should focus inventory decisions on the builders, contractors, and homeowners they serve.
Help Builders Sell the Benefits
Contractors often need help explaining why one product is worth choosing over another. Providing sales tools and product education around durability, maintenance, and long-term value can help move higher-margin products.
Build Relationships With Remodelers
New construction may be slower, but remodeling contractors are still active. Expanding relationships with exterior contractors and replacement specialists can create new sales opportunities.
Keep an Eye on Delivery Costs
Heavy materials can quickly eat into margins when freight costs rise. Review delivery pricing and make sure transportation costs are being accounted for properly.
The Bottom Line
The siding market is changing. Vinyl is still a major player, but it no longer controls the category like it once did.
Today’s LBM dealers need to think locally, understand regional trends, and stock products based on the builders and homeowners they serve.
The dealers who adapt to these changing preferences will be better positioned to grow sales, improve margins, and stay competitive in 2026.
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