Residential construction is booming in many parts of the country. The resurgence of the housing market has led to more people buying and building homes. This has created a need for more contractors, builders, and laborers in the residential construction industry. Moreover, the housing shortage is still at an all-time high. Therefore, the industry is essential for the country.
The demand for new homes has also led to an increase in prices. As a result, home prices have been increasing faster than the rate of inflation. This has made it difficult for some people to afford a home. Despite this, the demand for homes remains high. However, this also means that this sub-sector of the construction industry remains highly competitive.
Knowing about recent trends can make a difference in staying ahead of the competition. The first two trends you need to know about are the housing shortage and the high price of homes and what it means for you.
The Housing Shortage
The housing shortage has been a trend in the construction industry for quite some time now. The residential market is short of five million homes. That’s a lot of homes to make up for the population in the U.S. The tight housing market results from many factors, but one of the most significant has been the decrease in construction during and after the Great Recession.
There was less money available for construction loans during that time, and many people lost their homes to foreclosure. As a result, fewer homes were being built. At the same time, the population continued to grow. The combination of these two factors led to the current housing shortage.
To deal with this problem, you need to invest more into manpower. Sadly, manpower is hard to come by because of the pandemic. You can combat this by raising the pay rate for your laborers. Better yet, start investing in robotics and see where that leads in the future. It’s a risky choice, but one that can pay off.
The High Price of Homes
Home prices have been on the rise for many years now. They’ve been increasing faster than the rate of inflation. The average price of a home is now over $300,000. This increase in prices has made it difficult for some people to afford a home.
Despite this, many people are still interested in buying homes, but they’re struggling to find one that’s affordable. As a result, you need to be aware of this trend and adjust your prices accordingly. You may also consider offering financing options to make it easier for people to buy your homes.
The next trend you need to know about is home extensions. Home extensions and renovations took a huge turn for the better when the pandemic started. People were suddenly stuck at home with nothing to do. So, they decided to invest their time and money into making their homes more comfortable.
As a result, the demand for home extensions shot up. If you’re not already offering this service, now is to start. You can expect the demand for home extensions to continue for the next few years as people are still interested in making their homes more comfortable and liveable.
Some of the best extensions you can offer are swimming pools. Many Americans have resorted to having one since public pools have closed. Another good extension are winter greenhouses. Many people had turned to gardening when the pandemic started, making this a valuable home extension.
Another trend you need to know about is the demand for eco-friendly homes. The pandemic has made people more aware of the importance of being eco-friendly. As a result, they’re now looking for homes that are energy-efficient and sustainable.
If you want to stay ahead of the competition, you need to start offering eco-friendly homes. You can do this by using sustainable materials, such as bamboo, and by implementing green design principles. You should also consider investing in solar panels and other renewable energy sources.
The last trend you need to know about is modular construction. Modular construction is a type of construction where homes are built in modules or sections. These modules are then transported to the site and assembled.
Modular construction has many benefits, such as being faster and cheaper than traditional construction methods. It’s also more sustainable since there’s less waste involved. If you’re not already using modular construction, now is to start.
Invest in modular construction options. It’s also good to partner with factories that do this construction method.
The bottom line is that the residential construction industry is booming right now. There are many opportunities available, but you need to be aware of the trends in order to take advantage of them. Stay ahead of the competition by investing in manpower, raising your prices, and focusing on energy-efficient homes.