Recent global events, namely the worldwide COVID-19 pandemic, have stalled economies and left many people wondering how their businesses will make ends meet. For developers and property investors, the thought of scooping up properties now can feel more like betting your money on a game of chance than cashing in on a sure thing.
The truth is that residential construction is actually a beacon of growth and economic recovery even today. In fact, September 2020 brought us the highest production rate in single-family homes we’ve had since right before the 2008 market crash.
Next year is likely to be an even bigger boon for builders, contractors and property developers since many people are putting off buying homes now with hopes of buying in 2021 instead. Of course, to reap the rewards of this residential construction boom, you’ll need to know what buyers want from their new spaces.
Being able to look forward and predict which construction markets to pay attention to can also help you grow even in uncertain economic times. Use this guide to learn more about the residential construction market for 2021.
What Amenities are Homeowners Requesting?
Residential construction has always catered to the needs of today’s homeowner. In 2021, the amenities homebuyers are looking for are somewhat unique to the times. With people spending more time indoors, at home and isolated from the public, many are looking for ways to handle work, exercise and leisure activities from home. Flexibility is also quite important for many homebuyers.
Here are some of the most commonly requested amenities for 2020 that buyers will be looking for in 2021:
• Home offices. More people are working from home today due to the COVID-19 crisis. Some employers plan to allow workers to remain at home even after they’re given the all-clear from health authorities. In home office spaces, quality materials like luxury vinyl plank flooring provide an environment that’s warm, friendly and familiar for people who are working from home.
• Exercise spaces. Going to the gym hasn’t been possible for some people for many months as we approach the tail end of 2020. Many people may not feel safe returning to the gym even after facilities re-open. Home exercise spaces are becoming increasingly popular, allowing entire families to work out without leaving the house. For these spaces, rugged materials like waterproof vinyl flooring are an exceptional choice since they combine excellent value and long-term durability.
• Flex rooms. When it comes to flex rooms it’s all about designing spaces that can be used for multiple purposes on any given day. These rooms also have the ability to change over time, going from a guest bedroom to a home office or workout space. Materials like click together vinyl flooring are often ideal here.
• Eco-friendly products. Sustainable, eco-friendly products are becoming more and more mainstream with potential homeowners. For builders, that means low-VOC paints and materials that can last for many years like luxury vinyl wood flooring are popular picks.
Which Construction Markets Will Grow and Decline After 2021?
Predicting the future of any construction market, particularly when serious issues like the COVID-19 pandemic are still with us can be quite problematic. However, there are some indicators that allow experts to speculate on which construction markets will grow and which will decline in 2021.
The biggest areas of growth in 2021 are likely to remain in residential sectors, with the single-family housing market less impacted by the global pandemic than others. Larger multi-family units may take a hit, but some growth is still expected.
The spaces most likely to suffer are those intended for retail, offices and hotels. The biggest factor here, again, is the COVID-19 crisis. With people shopping less, working from home and postponing leisure trips, construction in these markets will continue to move at a snail’s pace if at all.
Public construction projects are also expected to be much slower than they were in 2019 and the early part of 2020. This may be due to the fact that much public money is being used for healthcare management and emergency response. Public construction also won’t be a big priority for area leaders who will likely be focusing their efforts elsewhere, at least in the early part of 2021.
As 2021 continues, we may see a rise in retail, office, hotel and public works projects. However, this appears to be somewhat contingent on the containment of the COVID-19 pandemic.
Residential construction projects in 2021 are going to require durable, family-friendly materials that have a high-end, designer-inspired look. We can help you find go-to materials like luxury vinyl wood plank flooring for all of your projects.
Reach out to our trained team members at BuildDirect today to find materials like luxury vinyl flooring, interlocking luxury vinyl plank flooring and waterproof vinyl plank flooring for kitchens and bathrooms.