The Houston construction industry forecast for this year and through next year is quite difficult to quantify. This, due to a number of dynamic factors which remain in a state of fluctuation and will likely continue over the next few to several months. These various elements are not all negative and because some are very positive, this is what makes it so hard to predict how the Houston construction market will be impacted in the short or long term. However, it is important to look at these situations in order to gain a better understanding of the Houston construction industry and how it will fare through this year and into the next.
The Houston construction market, like many other major cities in the south, southwest and Southeast is undergoing a nearly unprecedented phenomenon. This set of competing circumstances include supply chain disruption, materials shortages, strong consumer demand, near historic low-interest rates, labor shortage, and black of housing inventory.
Obviously, this creates a paradoxical situation where people have strong demand for not only new construction but also for remodeling projects but the lack of materials, contractors, and supply chain uncertainty, makes it very difficult to meet the demand. Complicating matters more is the strong influx of new residents who are leaving the West Coast and Northeast for the Southwest, South, and Southeast seeking lower tax environments. Businesses are also doing the same, which likewise increases the demand for commercial and residential construction.
Due to these wildly varying sets of circumstances, it is very difficult to assess where the Houston construction market will go in the next few months to hear. Although, if just a couple of the negative issues are resolved, it should experience huge growth.