Installed Building Products, Inc. (NYSE:IBP) Q4 2023 Earnings Call Transcript

Jeff Edwards: Well, theoretically, yes. I think one of the advantages that the production or the production builders, big builders have a lot of advantages, but one of their I think key advantages going into ’24 is their land position I think you saw what happened in ’23 is a lot of the regional local guys used up a lot of their land position and now are in a spot where they maybe don’t have the even though the demand might be there, they might not have the land to build. Now, a need to clarify something I don’t want to be super negative on the regional and local guys, because we they are the largest part of our business. There is still very constructive and positive and we’re very pleasantly surprised that there is constructive and positive as they are just given the environment.

But if the Fed as I think most people are expecting does decide to lower rates in the back half of the year. I do think it continues to be good for housing. I don’t think they’re going to have lower rates enough that it really unlocks the 3% mortgages that so many people with existing homes have that is going to present a competitive alternatives if you will to new home construction. And quite frankly, even if it does, the demand for housing is solid. And I think there’s plenty of room for both the existing home market and the new home market, given the availability or the demand for housing. Quite frankly you know it’s a healthier environment when for housing affordability when you have a more historical mix of existing homes and new homes.

Right now, as we mentioned in our prepared remarks, I mean the new home sales as a percentage of overall home sales is at a very high level, because of the things that we all know about on this call.

Noah Merkousko: Yeah, that all makes sense and that’s helpful. I appreciate the time and good luck with the rest of the year.

Jeff Edwards: Thank you.

Operator: Thank you. Ladies and gentlemen, that concludes our question and answer session. I’ll turn the floor back to Mr. Edwards for final comments.

Jeff Edwards: Thank you for your questions and I look forward to our next quarterly call. Thanks.

Operator: Thank you. This concludes today’s conference call. You may disconnect your lines at this time. Thank you for your participation.