A Look at Residential Construction Trends Over the Past DecadeBy RISMedia Staff
The housing market and housing construction as of late has left many on the consumer and business sides a little dazed and confused. While the market has always been in a state of flux, recently the complications have grown. With inflation rising and issues in construction supply chains, it’s been hard to track and understand the trends in data.
The best way to determine the macro-trends at play in these complicated times is to look at the historical data to see the bigger picture. Point2’s new report analyzes historical data on permits, completed and started units, along with employment, incomes, and business data to understand how housing construction and construction employment trends have evolved over the past decade. Key highlights:
“Despite a drop in the number of permits issued, 2022 has been a strong year for home building. After being pummeled by the pandemic and its aftermath, home builders have proven just how adaptable and resilient they are,” said Andra Hopulele, a Senior Real Estate Writer at Point2 and author of the report. “As such, last year may have been a "stop and take stock" moment, the lower number of permits issued at the national level in 2022 indicating a recalibration of effort and resources.” “Further proof that this really is the case is that completed units have continued to increase, despite the slowdown in permits and housing starts, as well as the many supply chain issues and price challenges. However, this decade-long upward trajectory may start to slow down in light of the most recent banking problems and the lending stress they created, continued Hopulele. “Another significant finding was that the drop in the total number of permits was almost entirely due to the drop in the number of single-family homes permits, while the number of permits for multifamily homes continued to rise. This could mean that rising building costs are forcing developers to focus more on multifamily projects, at the expense of single-family homes and duplexes.” For the full report, including more in-depth data and charts, click here. |
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