Trio of Articles Shows Construction Industry Holding Up Despite Ongoing COVID-19 Threat

As the US continues to look for ways to deal with the continuing coronavirus pandemic, potential bright spots – at least on the economic side – exist in the construction market. While builders and construction firms have had to deal numerous changes in business practice and daily operations, in most parts of the US the construction industry has escaped the disruptions on the scale of – for instance – the restaurant industry. This, in turn, has positioned construction for growth in the near term from its recent low point in April.

A trio of articles highlighted the optimism of construction industry participants:

• One article noted that housing starts rose sharply in June, as builders – noting a shift toward suburban living – ramped up construction of new homes, particularly single-family dwellings.
• In a related vein, a second article reported that home builder confidence climbed again in June, indicating that housing starts would continue to rise as consumers continued to demand new housing.
• Another release noted that commercial building and nonbuilding construction starts posted gains for the second straight month, buoyed by solid growth in renewable energy construction projects.

It is anticipated that construction activity will continue to rise going forward, especially in the housing market. Spurred by low mortgage rates, many consumers – especially those looking to depart from urban centers with higher rates of COVID-19 infection – are looking to buy homes. And, with a shortage of affordable housing, builders can know that any residences they do put up can be quickly sold – easing industry fears of a buildup of inventory.

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers 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.