Real estate is booming, and the demand for property makes it a lucrative venture. Entrepreneurs and construction companies are making mega profits because of the bullish real estate market.
However, though both industries are reaping benefits, there are certain areas which affect these industries and have a possible effect on the housing market. In Australia, hardware supply stores are showing distinctive growth for the past five years. Form Direct explains that this growth depended largely on the growing DIY market and rising household income.
Construction Industry Trends
New construction materials have enabled engineers and architects to design great building structures. However, prefab or off-site construction methods are a rising attraction for many homeowners. Prefabricated construction materials mean lower costs, faster building time, and less waste.
Another trend is the lack of skilled labour. Many skilled workers did not return after the recession lay-off, and the limits to immigration have made the shortage more palpable in the construction industry. Many companies now struggle to fill the gaps with higher wages and better benefits, though only time will tell if this will succeed.
Preparing for the Fall
Many companies in the industry are still cautious about the rising market. Larger companies, homeowners, and real estate agents are even more cautious after the housing crisis a decade ago. However, smaller construction companies make sure they can make a quick turnaround when the market turns bearish again. Sometimes, these smaller businesses switch to repair and maintenance services to ride out gloomy economic times.
For those in the real estate and construction industry, labour and new construction trends could make the market rise even higher. However, the effects of these trends may take some time to manifest, so it is best for those in the industry to be adaptable in periods of slow economic growth.