Key Insight

QXO's core demand driver — residential housing turnover — remains locked in a structural freeze, and the data increasingly suggests that the hoped-for normalization is not coming anytime soon.

Generated by Claude on Apr 15, 2026

QXO fundamentals

Tracking the macro drivers behind roofing distribution: residential turnover and affordability, repair and replacement demand, and the new construction pipeline

Updated 4 days ago.

Exclude COVID

Residential Turnover

Existing Home Sales

Best simple proxy for housing turnover — more turnover usually leads to more repair, renovation, and reroof activity.

▼ -6.6% YoY

4.1kK units

Trend YoY growth is -6.6%, slowing by 99 bps/year over the last 10Y. Deviations have remained above trend for 26 consecutive periods. Latest: -1.4%, 5.1 pp above trend, a 0.47σ deviation.

Level

YoY %

y = 3.4% 99 bps/yr · t

Deviation from trend

Existing Home Months' Supply

Inventory is a leading indicator for transaction recovery — more supply usually supports future turnover.

▲ +0.5% YoY

3.80Months

Trend YoY growth is +0.5%, accelerating by 11 bps/year over the last 10Y. Latest: +0.2%, 30 bps below trend, a 0.62σ deviation.

Level

Change (pp)

y = −0.6% + 11 bps/yr · t

Deviation from trend

Affordability

30-Year Fixed Mortgage Rate

Main affordability variable affecting home sales and housing turnover.

▲ +0.4% YoY

6.5%

Trend YoY growth is +0.4%, accelerating by 3.8 pp/year over the last 25Y. Deviations have remained below trend for 75 consecutive periods. Latest: -0.4%, 79 bps below trend, a 1.7σ deviation. The latest YoY reading is boosted by 52 bps due to an easy comparison base from Jun '25.

Level

YoY Change (bps)

y = −0.6% + 4 bps/yr · t

Deviation from trend

National Home Price Index (Case-Shiller)

Higher home equity usually supports homeowner repair and upgrade spending.

▲ +5.5% YoY

329.9Index

Trend YoY growth is +5.5%, accelerating by 5 bps/year over the last 25Y. Deviations have remained below trend for 21 consecutive periods. Latest: +0.7%, 4.8 pp below trend, a 0.90σ deviation. The latest YoY reading is boosted by 2.0 pp due to an easy comparison base from Mar '25.

Level

YoY %

y = 4.2% + 5 bps/yr · t

Deviation from trend

Repair & Replacement Demand

Severe Hail & Wind Storm Events

Monthly count of hail, thunderstorm wind, high wind, and tornado events from NOAA — a major direct driver of reroof demand.

▲ 1.2x YoY

1.4kEvents

Trend YoY growth is 1.2x, accelerating by 16 bps/year over the last 25Y. Latest: 1.3x, 11.6 pp above trend, a 0.19σ deviation. The latest YoY reading is depressed by 104.1 pp due to an tough comparison base from Dec '24.

Level

YoY %

y = 17.8% + 16 bps/yr · t

Deviation from trend

Asphalt Roofing Product Prices

Helps separate pricing and mix changes from true unit-volume changes and informs margin context.

▲ +4.1% YoY

355.1PPI

Trend YoY growth is +4.1%, slowing by 11 bps/year over the last 25Y. Deviations have remained below trend for 31 consecutive periods. Latest: +0.7%, 3.4 pp below trend, a 0.64σ deviation. The latest YoY reading is boosted by 3.5 pp due to an easy comparison base from Apr '25. At current levels, YoY would fall to -3.3% by Jul '26 as comparisons tighten.

Level

YoY %

y = 6.9% 11 bps/yr · t

Deviation from trend

New Construction Pipeline

Single-Family Building Permits

Best broad leading indicator for new residential construction demand.

▲ +4.4% YoY

881.0K units

Trend YoY growth is +4.4%, accelerating by 28 bps/year over the last 25Y. Deviations have remained below trend for 24 consecutive periods. Latest: -4.5%, 8.9 pp below trend, a 0.59σ deviation. The latest YoY reading is boosted by 10.0 pp due to an easy comparison base from Apr '25. At current levels, YoY would rise to -0.3% by Jul '26 as comparisons ease.

Level

YoY %

y = −2.7% + 28 bps/yr · t

Deviation from trend

Private Nonresidential Construction Spending

Captures commercial construction demand relevant to commercial roofing and related products.

▲ +8.8% YoY

$729.8B

Trend YoY growth is +8.8%, accelerating by 31 bps/year over the last 25Y. Deviations have remained below trend for 27 consecutive periods. Latest: -2.0%, 10.8 pp below trend, a 0.95σ deviation. The latest YoY reading is boosted by 12.2 pp due to an easy comparison base from Apr '25.

Level

YoY %

y = 0.8% + 31 bps/yr · t

Deviation from trend