Trending Construction Topics for the Back Half of 2016
The construction industry is projected to continue to grow through at least 2020. But what specifically does that mean for you and your crew?
Check out the top trends for construction for the rest of 2016:
Multifamily Home Growth Slows Down
The recession and its aftermath created a huge demand for rental properties. This continued to shape the residential real estate market for years. However, 2016 is slated to be the first year since the market crash that demand for single-family homes will actually outpace multifamily buildings.
This is due in large part to the surge of construction of single-family dwellings. This trend is expected to continue well into 2017. One expert predicts a 14% rise in the sector this year, with a 19% increase in 2017.
3D Printing Continues to Emerge
3D printing continues to rock the innovative world of construction. There are various new technologies up-and-coming in the construction industry. But this is the one people can’t stop talking about. Different avenues of the industry are quickly seeing its value and onboarding it into their business plans.
This modern software continues to adapt and improve. In fact, the world’s first 3D-printed office building opened recently in Dubai. And it was completed in only 17 days.
Steel Industry Booming
Strong demand for steel is forecasted to extend through the rest of 2016. The steel market is getting this boost because of the success in the real estate, commercial and construction markets.
“The housing and construction sector is the largest consumer of steel today, accounting for almost half of the total consumption. Improved job numbers, a recovering economy and growing consumer confidence, moderating home price gains, affordable interest/mortgage rates, rising rentals, rapidly rising household formation and a limited supply of inventory all point to continually strong demand trends in 2016,” said one analyst.
Commercial construction, such as skyscrapers and public transportation infrastructure, continue to be built because of the influx urban populations.
Construction Material Rise, But Stay Low
Beyond the steel market, construction material prices have expanded on a month-to-month basis, but continue to be historically low.
According to an analysis of the Bureau of Labor Statistics (BLS) construction input prices expanded back in April, for the second consecutive month, after 9 months of decreasing construction input prices.
While this is an increase, prices have overall decreased on a year-over-year basis for 17 consecutive months.
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