By Derek Stanley – ITR Economics
ITR Economist and Speaker Derek Stanley provides our outlook for residential construction in 2024. He details the challenges our clients are facing, highlights our expectations for next year and beyond, and offers actionable advice that you can apply to your business strategy!
Q: What are ITR Economics’ expectations for US residential construction for the remainder of 2024?
Derek: ITR Economics’ outlook for residential construction varies by market segment. Right now, it is expanding following the period of significant contraction from about mid-2022 to mid-2023.
Favorable economics for middle-and-upper-income consumers is partially driving the recovery. In addition, first-time homebuyers are finding their way into the market. Both of these avenues are helping. Companies and clients that work with us and are tied to the residential market are starting to see that upside pressure now. It is key for these companies to understand where they fall in the business cycle timeline in relation to residential construction. For this, we look at the Trends 10, an economic metric that we highlight in Trends Report.
As we see additional rise in residential construction, we will see corresponding gains in the overall macroeconomy in time. There will be upside trends in the manufacturing space on a national level and in wholesale trade, new orders, retail trade, and other segments that tend to follow the housing lead.
Q: What are some of the most common questions clients ask you about US residential construction? What advice are you giving them based on our outlook?