The Texas construction forecast for this year and through next is a very difficult one to predict. This is due to the fact that so many important factors continue to fluctuate and will probably stay in an unpredictable state for the foreseeable future. However, it is possible to look at some elements in order to gain an understanding of what is currently unfolding and what might happen in the near to long term.
The Texas construction industry, as with many other places, is experiencing a rare paradoxical phenomenon. These include, but are not limited to: supply chain disruption, high consumer demand, materials shortages, near historic low-interest rates, a shortage of laborers, strong consumer sentiment, and an influx of new individuals residence and commercial businesses into the state.
Other places in the south, and southeast, even in the southwest, are experiencing the same thing, which is a very large movement of people out of the Northeast and West Coast for destinations like Texas. Businesses alike are coming to the Lone Star State, either opening branches or relocating their headquarters.
Because of this, there is much present demand in the construction industry for both residential housing and commercial properties. This, combined with very low-interest rates and a relatively strong consumer sentiment means that demand is very strong at this time. Conversely, there are negative factors putting downward pressure on the construction industry, which include the previously mentioned supply chain disruption, shortage of material, and subcontracting laborers.
If these shortages and disruptions cease in the next few months, the Texas construction industry should experience substantial growth through the next several months and until the end of 2022.