As the economy reopens following the depths of the COVID-19 crisis, it’s likely that construction is going to be booming in quite a lot of areas. So, where is construction booming around the United States?
What is a Construction Boom?
A construction boom is an atypical increase in construction in a specific area of the country. Often, it occurs because of new opportunities in an area. When new industrial developments begin, for instance, residential properties are often created around them. When cities start to expand, properties arise in the surrounding areas as “bedroom communities.” Construction booms can also occur after depressed times (such as the COVID-19 pandemic), because the industry is artificially slowed. Now, following the pandemic, many companies are starting to build again.
Where is Construction Booming?
The construction forecast is interesting because the United States is currently contemplating increased and more permanent reliance on work-from-home infrastructure. It’s difficult to anticipate which areas are going to grow when remote workers may actually be fleeing higher-priced cities. Consequently, it’s possible that some developments may be seen in areas that were traditionally ignored; some developers may be rolling the dice on more rural locales.
Most importantly, the infrastructure market is likely to see some increases. Companies are still hesitant to get into commercial building and residential properties are going to be delayed, often because subcontractors can be difficult to contract following the pandemic. But the White House has announced its intention to invest in infrastructure projects, which means construction companies may be working with government contracts.
The construction industry is facing many challenges. Foremost, it faces the challenges of uncertainty. It’s difficult for anyone to know when the last of the effects from the pandemic will truly end and when people will feel safe and comfortable starting to fully return to commercial office complexes, and otherwise invest in commercial real estate. Many companies are trying their best to protect their employees. And many subcontractors have gone out of business or have paused their subcontracting, which means general contractors are finding it very difficult to get the workers they need. These are universal problems which are going to haunt the construction industry for some time.
What Areas of the US Are Growing?
In 2021, it looks like the states that are seeing the majority growth are Texas, Florida, Georgia, Arizona, Washington, and Nevada. These are the states that are most likely to see residential developments, because they are the states that are going to require them.
The fastest-growing cities are still in Texas. Though the oil industry did suffer setbacks in 2020, it’s now starting to recover. This fuels the economy. More people are moving into Texas, which also means that more homes are going to be developed out of a necessity.
Continued growth in the new homes market indicates that new homes are still being built, but largely in areas where the market moves very fast. That includes areas such as New York, Pennsylvania, and New Orleans. And those who are working remotely may take the opportunity not only to move to more rural areas, but also to move to more desirable areas.
Altogether, there’s a lot of reason to believe that while development is slowed, it’s going to start booming soon, and in quite a lot of regions. This is because there are many reasons to build in many areas, whether it’s a growing economy, or a fast-paced housing market.
While we may not see a completely booming construction industry until 2022, the United States is going to see a significant increase in construction throughout 2021. Many projects that haven’t yet broken ground are going to break ground now because the pandemic pause is no longer a factor. One thing is sure, however; there will be need for land property survey companies like Landpoint in advance of all this construction.