US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Potential Long-Term Effect of COVID-19 Pandemic – A Shift Away From Central Cities?

Over the past decade, America’s cities have seen something of a revival, and in part this has been fueled by an increase in the numbers of people who have chosen to live in “downtown” communities. From young professionals to empty nesters, more people are looking to be closer to the entertainment and cultural amenities they desire. This has spurred construction of high-rise apartments and condominiums in central peoples to meet this demand for living space.

However, this may be changing, as many people are increasingly wary of living urban centers, as many more densely populated parts of the US were most affected by the COVID-19 pandemic. Indeed, people moving out of urban cores into nearby neighborhoods or into the suburbs altogether will spur a number of changes to the US residential construction market in the near term. These changes may include:

  • a general uptick in remodeling activity as older structures are rehabilitated and upgraded to make them more welcoming to potential new tenants or owners
  • an overall increase in the size of residences – there is more space to build – that will support demand for such building materials as lumber, roofing, siding, flooring, and drywall
  • interest in adding outdoor amenities to residences, such as decks, outdoor kitchens, and other outdoor features (such as pavers or pergolas)
  • growth in consumer spending – consumers are likely to accumulate more possessions when they move into larger residences, as they have more space to store things

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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