In the first quarter of 2020, the construction industry added more than $900 billion to the U.S. economy. Then, we saw the effects of COVID-19, which caused the construction industry to lose $60.9 billion in GDP and approximately 6.5 million jobs. This disruption led to trends like remote work and social distancing, as well as higher construction costs, shifts in resources, and cash flow disruptions. Still, despite the uncertainty of the times, some trends seem to be rising to the surface as we close out the year. Here are five construction trends you will want to pay attention to.Five construction trends for 2021
Getting through the next few months will be vital to the recovery that’s been happening in Atlanta since April. However, job reports show slowing employment gains compared to previous months. November had the lowest jobs gain since May, increasing only by 245,000. During the first week of December, jobless claims jumped to 853,000. Oil has also risen to its highest level since February. This is the result of a shortage in the market and inflation due to a weaker dollar.
Over the last few years, Charlotte’s metro area home prices have been steadily increasing. The past 12 months have been no different. The median home value in Charlotte has increased by 9.1 percent, according to Zillow. Experts believe this is due to many homebuyers in the area working “white collar” jobs which can be done at home, record-low mortgage rates, and supply and demand. Currently, there are a lot of buyers, but not enough homes. This is especially true for “starter homes.” For example, a home priced at $48,990 in 2011 has jumped to $145,000 as of 2019.
Since July, Florida has shown positive signs of recovery. For example, year-over-year single-family home sales have increased by 11.7 percent since July 2019. According to Florida Realtors Chief Economist Dr. Brad O’Connor, the main reasons for this increase are a slow spring buying season and record-low interest rates. Since there are no signs of interest rates increasing, the market forecast is that demand will continue to increase throughout early 2021.