The construction industry across the US is showing a slow yet steady recovery from the financial crisis and global housing market crash that put the industry under severe property. Areas such as Phoenix are seeing demand lifting in line with other cities such as Chicago and Minneapolis, where residential construction is in a healthier condition.
An increase in interest from buyers means that construction companies are starting to respond, and with record low mortgages still available and rising rents, purchasing your own home has once again become the more attractive option.
Even though other areas of the American economy are showing signs of potential weakening, the housing market is holding strong and even growing in many areas. New home sales grew in May at their fastest pace for over two years, while the sales of previously occupied homes was up by 10% when compared to 12 months earlier.
All this good news is meaning growing confidence from construction companies who are committing more to the market, with the National Association of Home Buyers/Wells Fargo builder sentiment index reaching its highest level since 2007.
Builders are reporting higher turnouts from buyers and single-family home construction has shown gains, according to data released by the Commerce Department. En economist from TD Bank, Martin Schwerdtferger, said: "This was a good report," before adding that the growth in construction permits "suggests that the momentum in building activity observed in recent months should carry forward."
All of this points towards a sustained recovery within the housing market and with building firms and construction companies moving to meet the growing demand, house prices continuing to climb and people feeling more secure in the market, the outlook is good.
