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North American Housing Market Remains Strong, Despite a Global Slowdown

DuckerFrontier, January 27, 2020

The Wall Street Journal published an interesting article on the world economy and its impact on the housing slowdown. At DuckerFrontier, our Building & Construction industry experts are monitoring true indicators of the housing demand, and we see strong growth for the North American housing market as demonstrated in our 2020 Building & Construction Outlook. We outlined below four key considerations to remember when planning for demand in the United States through 2020 and 2021:

  • Risk of a housing market slowdown due to decelerating home values/pricing is buffered by our US Housing market, which has a healthy forecast in 2020 and is likely to resist typical cycle dynamics – low interest rates, higher employment and confidence, better financial status.
  • Over 60% of US housing is moderate single-family construction, which is generally influenced by local or regional demand, rather than international markets. Some ultra-high-end condo purchasing in leading urban areas may be impacted by global markets, but these make up a significant minority of current housing projects.
  • Residential investment – new construction of single and multi-family homes – only averages about 3-5% of GDP in the US, creating less of a concern regarding global GDP issues.
  • Price deceleration is actually a good development, which should open up more access to the segment of the US population who looks for more affordable homes – representing the largest buying segment and offering plenty of demand for builders.

DuckerFrontier’s Building & Construction experts are at the forefront of key trends impacting the industry. Our goal is to help clients deliver growth solutions to support critical decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us to connect with a team member.

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