More people are building today than they have since the 2008 housing crisis. The supply is still low on the market and the demand is still high, motivating families to build their own house to their own specifications rather than pay above asking price or deal with a bidding war for a house they don’t absolutely love. So, this is a good environment for professional builders and anyone looking for a new home. We’ve noticed key changes and trends that builders and buyers should be aware of.
Trends in Project Methods
According to Constructiondive.com, three prevalent methods are altering the building industry – design-build, integrated project delivery, and public-private partnerships. They predict these methods will gain much ground throughout 2017.
The design-build process consolidates the design and construction phases into one contract. The integrated project delivery method involves the owner, architect, contractor and other project stakeholders using a single contract to determine project goals, costs, risk-sharing and compensation together. The public-private partnership method involves a government entity hiring someone from the private sector to manage most aspects of the building project. The private entity will operate and maintain the facility before turning it back over to the owner.
Because of the trend in more collaborative methods, “spec” homes may become less popular.
Legislation & Economic Effects
During the recession, a large part of the construction workforce was forced to leave the industry for other jobs. This labor shortage still affects our industry today. As is common with any change in administration, construction businesses are still waiting to see what changes will come with the Trump administration, especially concerning trade conflicts and infrastructure spending. A rise in the cost of material and labor is definitely expected this year, affecting many industries. Legislators have also been revisiting many construction regulation changes from previous years.
The increased use of drones is a sign of the emphasis on data and automation. Interoperability, or the use of software and systems to collect and communicate information, should improve the efficiency of construction projects and save on cost by preventing labor fraud, waste, or hazardous mistakes. Virtual reality could also become a more utilized tool that could take project management to the next level. Many construction teams are excited about this option.
We’ll be mulling over these findings we’ve discussed. And we’ll continue to keep a pulse on the environment of our industry. It is ever changing. It’s never a perfect time for the builder, the buyer, and the seller all at once. But what we do as builders is foundational to communities and families. We love what we do, and we’re committed to excellence always. There are definitely exciting opportunities ahead!
P.L. Lyons Architectural Builders is continually researching, studying, and keeping a pulse on our ever-changing industry. In today’s environment, with changes that may be just around the corner, now is the perfect time for builders and buyers to take advantage of our current markets. We love what we do and offer to individuals and communities. We are committed to integrity and excellence –in every season– and look forward to the exciting opportunities ahead!