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The effects on the retail of eCommerce to suburban migration, the real estate market are dramatically changing and bringing new opportunities. Whereas the construction industry is expecting a boom because of the industrial space renovation, housing, and forthcoming infrastructure spending that the new administration is bringing.
The Housing Price Prediction for 2021
According to market watchers and economists, the values of the home property will grow at their fastest pace in 2021. The latest report by the Urban Institute suggests if the prices continue to grow at the same pace, then the US homeownership rate will decline dramatically over the course of the next two decades by 62 percent.
The report also states that the average household growth from 1990 to 2010 was 12.4 million per decade, from 2010 to 2020, it was 7.3 million, and from 2020 to 2030, it will be about 8.5 million, and from 2030 to 2040, it will be 7.6 million. The decline in the average growth is because of the decreasing population growth of the US. But for now, because of the global pandemic, the rates of real estate, especially for homes, are increasing, and here’s how it’s affecting the construction industry.
Real Estate and Construction
The main resolution for most of the contractors for 2021 is to survive the first 8 to 10 months. The first half of this year will be the most challenging. Since last April, when the architectural billings index fell off, all the indicators of the index (residential, institutional, commercial) have been showing positive signs. They are reaching the equilibrium level of 50, and residential construction is undoubtedly leading the charge. Moreover, K-shaped recovery and low mortgage rates are also serving as tailwinds.
Recovery, re-imagination, and resilience will play as the primary factors for construction and real estate throughout this year. The devastations of the global pandemic have also allowed both industries to come up with innovative digital trends which both developers and property managers are adapting. Not only is it helping them to realign and repurpose their space offerings, but it’s also helping them to keep pace with the changing needs and preferences of the consumers.
All these new trends, increasing demands, and changes in commercial property are bringing fresh opportunities to the construction sector. Not only will it benefit the construction sector, but it will also bring a sustained boom and buildout in the infrastructure of the country under the new government.