The Austin construction forecast for 2021 through 2022 is uncertain at this time. With substantial supply chain disruptions currently persisting and a marked lack of basic building materials, the construction industry is experiencing a very rare phenomenon. This applies not only to residential but also to commercial. However, there are some factors in play that can provide a bit of insight as to what might unfold in the next few months to a year.

The Austin construction environment is experiencing much the same as other major cities. This includes a significant labor shortage, black of key materials, rising material prices due to scarcity, low-interest rates, inflationary pressure, and an unpredictable supply chain.

All of these elements are happening at once which makes it very difficult to predict the future. For instance, consumer sentiment is low but conversely, consumer purchasing is quite robust. Similarly, new construction starts were at a strong level only about a year to a year and a half ago when supplies were readily available. Well interest rates remain near historic lows, common building materials are still difficult to acquire and due to the supply chain disruption and scarcity of said materials, prices are rising fast and unpredictably.

If there is a return to near supply chain normalcy and materials become readily available, coupled with low-interest rates and the strong outflow of people from the Northeast and west coast, the Austin construction industry should experience a boom within the next few to several months. However, this is predicated on most of these abnormalities subsiding and interest rates, along with a decrease in inflation.