Residential Construction and Remodeling to Rise in the US

Published By : 25 Nov 2015 | Published By : QYRESEARCH

In the earlier half of 2000, experts within the residential construction sector forecast that the US would reach a saturation point for new homes in the not so distant future. 

As a result, there would be a corresponding development of the remodeling industry since homes built between 1980 and 2000 would require serious repairs and updating. 

Even though a number of builders began including remodeling elements in their businesses, the eight year slump in the real estate market and bursting of the housing bubble brought residential construction to a slow crawl. Shortage of credit for medium and small size builders resulted in many of them turning to remodeling in order to survive in the market.

It is rather unlikely that those predictions made in earlier in the millennium regarding the housing industry in the US will come to pass 15 years from now.

Instead, John Burns Real Estate Consulting has said that at least 90 per cent of forecasters within the building products industry believe that residential construction will go up by a minimum of 30 per cent to surpass 1.5 million units. This can be attributed to the increasing number of young adults who are putting off household formation. 

Even though the timing of the industry development will depend largely on interest rates and economic growth, the demand visibly suggests that the US$ 235 billion spent towards the construction of new residential units in the United States in 2014 will dramatically increase. 

Chief executive officer John Burns said that companies of building products are looking forward to a growth of 30 per cent or more in the construction of apartments and new homes. This is estimated to let new constructions eventually overtake the remodeling business. He added that the remodeling and repair sector is estimated to register a 7.8 per cent growth next year, with strong growth to follow.

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