The long-stalled residential construction industry could bounce back as early as next year, credit agency Cesce predicts. The agency believes home building will increase 6 per cent increase in 205, and jump another 8 per cent in 2016.
Overall, construction activity is expected to decline between 6.2 and 6.7 per cent this year, compared to 2013. And the combined industry will grow only 1 per cent next year, but housing will pick up quicker than other segments, the agency predicts.
The forecast may conflict with the continued glut of available homes for sale, a supply which stands at about 650,000 homes, according to one recent report. But evidence is mounting that most of that supply may be in poor locations or not the quality desired by buyers. Real estate executives in popular tourist destinations say there is already a need for quality product and there has been a noticeable increase in demand in recent months, property executives say.
Any demand for new residential product would be good news for the construction industry – and the overall economy, with the construction industry one of the few sectors that can quickly add badly needed jobs.
In recent years, the construction has relied primarily on projects overseas, including Central America and South America. But there are signs that the interest is growing in the industry. The number of new building companies has steadily increased in recent months, Cesce says.