What are we hearing here at Camoin?
Housing has been a hot topic this past year. From market analysis to strategic planning to housing need assessments – communities and their people are eager to know what housing exists, what is needed, and what can be added at a certain price point. COVID placed pressures on the housing market leading to limited inventory and pent-up demand often followed by bidding wars and rising housing prices.
In the context of industry knowledge, our engagement professionals are connecting with operators in the housing construction supply chain and beyond and hearing what they see as opportunities, including:
- Overall there is a perception that this housing market is not likely to have the housing bubble impact felt in 2007. As such operators in the steel and wood sectors are gearing up for expansion to meet demand.
- There is pressure on the wood and lumber supply chain leading to rising prices and searches for new products. The Midwest is being sought after as a location for its lumber availability. Many existing suppliers are looking to expand regionally.
- There is an increased emphasis on steel framing for both residential and commercial construction.
- Cabinet manufacturers are looking to acquire positions in the Southern United States to be within proximity to their materials.
What is the data telling us?
While businesses seem confident with the housing market – households in the United States have remained cautious. Threatened and diminished incomes during the COVID-19 pandemic left many renters wary of purchasing a home. As economic conditions begin to rebound, these consumers are anticipated to enter the housing hunt for both new and older homes.
Low-interest rates are a primary driver of new home builds in the United States. Looking forward rates are anticipated to remain low boosting access to lending. This combined with a low housing stock is expected to boost demand for housing construction by 2.6% annually from 2020 to 2025.1
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If you are interested in understanding the housing market in your community, Camoin 310 can help by assessing current and future needs, creating strategies to implement housing projects, facilitate development finance to attract and build projects in your community, etc. Contact us to learn more. |
Want to know more about this trend?
Here are some additional resources:
- The U.S. Faces A Housing Shortage. Will 2021 Be A Turning Point?
- COVID-19’s Impact on the Construction Supply Chain
- US Department of Housing and Urban Development – New Residential Construction
Image Source: Adobe Spark and Camoin 310
[1] IBIS World Home Builders in the US October 2020
