There is a lot to be thankful for when looking at the current state of the construction market, as this 2017 Thanksgiving rolls around.
Basically, the construction market is continuing its recovery with sustained growth. In October an additional 11000 jobs were added to the industry. Single-family housing starts, although uneven month to month continue to increase over the long-term. They are currently higher than they have ever been since February 2008. Interestingly, multi-family starts are trending down for the first time in a while, but aren’t expected stay that way.
The NAHB Leading Market Index indicated that the home building market is currently running at 103% of production and that 84% of housing markets are showing a year over year improvement.
Less luxury, more reasonably priced housing
The industry also seems to be considering abandoning its strategy of turning to high-end housing for profit. According to “Eye on housing“, 5,000 + square foot home starts declined by 15% between 2015 and 2016. Many builders seem to be refocusing on what will surely become a much higher volume and more lucrative market: reasonably priced homes. This is an important step towards relieving the many first-time home buyers of the millennial generation, beset with student debt and currently inflated housing prices.
Robert Dietz, Chief Economist at the NAHB, cites job and economic growth, and currently limited housing inventory as strong drivers construction to pick up the pace.
Dietz expects the single-family housing market to continue to get stronger in 2017.
All good news, essentially.
Our 2017 Thanksgiving
Here at TRIFORCE®, we have a lot to be thankful for as well.
In particular, we’d like to thank our American customers. Thanks for giving TRIFORCE® a chance on your projects. Thanks also for talking to your peers about your TRIFORCE® experience.
Finally, a special mention goes out to Canadian builders where TRIFORCE® is becoming a systematic choice for many single-family and multifamily constructors.
From the whole team here at TRIFORCE®, happy Thanksgiving!