What will 2016 look like for your construction business? One thing is certain, there are industry trends firmly in place that are already shaping this New Year.
The Wall Street Journal states that the homeownership rate is seeing a near 30 year low, according to late 2015 statistics from the US Commerce department. Some experts think that it is finally levelling out and will start climbing again. Conditions seem better. The mortgage-lending climate is healthier and mortgage debts are lower. More people can afford to sell their home and buy another. House purchases are up from last year. Does that mean there will be a strong increase in single-family home starts in 2016? Hopefully, but alot more buyers will have come out of the word-work (pardon the pun).
Lack of first-time single-home buyers
The housing market is lacking first time buyers. According to Forbes, the number of first-time owners is around its lowest since 1987. House prices are rising, and new buyers can’t seem to get the money together to purchase. The result is people are renting like never before. A recent Real-Estate study reports that apartment rentals are now increasing faster than they ever did since 2007.
This would explain why multifamily housing starts (buildings with five units or more) are another strong trend we’ll continue to see in 2016. According to Multi Housing News, the 3-month average of multifamily housing starts is at it’s highest since 1987. The American Institute of Architects also identifies an increase in higher density development their Q3 2015 home design trends survey results. Expect more of the same in 2016.
Renovation will be one the strong residential construction trends in 2016, which is kind of parallel to the reduction in first time homebuyers. According to the Wall Street Journal “ fewer Americans are trading up and more are willing to take on the headache of improving their current homes in the aftermath of the housing crash”. A recent survey by Houzz found that over half of their homeowner members over 60 are planning to stay in their own home and renovate accordingly.
Value will be king
Finally, given the recent global economic uncertainty, value will be key in any construction project. No matter if you are building single home, multi-family or doing renovation contracts, it is certain that customers will be looking for high-quality cost-effective materials that will ensure that their investment will be a durable one.
If you are looking for innovative and cost effective materials for your single-home, multi-family, commercial or light residential projects, have a look at what we have to offer. We are glad to help.