In the years since the Great Recession officially ended in 2009, the construction industry has made a strong comeback.
As many Americans remember all too well, the recession was one of the worst financial collapses in recent history, trailing only the Great Decession. Millions of families lost their homes and jobs, while numerous businesses closed their doors. And even to this day, recovery lags in some areas.
Fortunately, the construction industry is on the rebound, where the demand for new buildings and renovation of others has sharply increased.
There are no indications of a slowdown anytime soon. Construction companies should expect an influx of projects, each of which requires detailed planning. One area that can’t be forgotten about is storage.
Over the duration of the building phase, mobile storage containers can help meet the storage needs of employees and organizations.
The Strong Rebound
During the recession, the U.S. gross domestic product contracted by 5.1 percent between 2008 and 2009, according to the Center on Budget and Policy Priorities. Similarly, statistics from the Federal Reserve Bank of St. Louis showed employment in construction also reached dramatically low monthly totals.
In Feb. 2011, construction workers totaled 5.4 million compared to peak employment of about 7.7 million reached in Jan. 2007.
Since then, both numbers have made steady gains. PBS stated how the construction industry has helped the GDP grow by more than 21 percent to current estimates of $18.5 trillion, according to the International Monetary Fund. The Federal Reserve Bank of St. Louis also pointed out that during Q1 2016, construction contributed $650 billion to the economy, an amount that hasn’t been seen since the last half of 2008.
One reason construction has helped state economies: population growth. When more people move into an area, the demand for housing and other buildings increases.
According to Rent Cafe, Houston and Dallas are two cities projected to have the most apartment projects delivered in 2016. Both cities are in the midst of population growths as well. According to U.S. Census Bureau, the area’s population grew by 160,000 between 2014 and 2015. The Dallas-Fort Worth area grew by 144,704 people in the same span.
Population growth has led apartment supply to more than double across the country.
Millennials Play a Role
Millennials are now the largest generation in the country and it’s increasingly difficult to go one day without hearing something about these individuals.
But it just so happens millennials are helping fuel the apartment construction boom. It’s no secret this generation of individuals and families are putting off the purchase of homes and choosing to instead live in cities. A study by Harvard University found 43 million individuals and families lived in rental housing in 2015. Simply put, this surge is unprecedented and millennials make up 11.3 million rental households.
As The Pew Charitable Trusts highlighted, construction on 386,000 apartments started in 2015 alone. These numbers are the highest since the 1970s. Additionally, across the U.S., 47 states saw a shift from homes to apartments as measured by approval of permits. In states like Colorado, apartment construction permits made up 38 percent in 2014, compared to just 10 percent in 2005.
More Problems, More Renovations
The Great Recession was caused in part by the collapse of the housing market that occurred because Americans took out mortgages for homes they couldn’t afford.
Many of these homes have subsequently been dubbed McMansions because they were constructed at a time when Americans wanted larger homes. Additionally, these houses were built at fast rates using subpar materials and questionable methods that involved a mix and match of architecture.
Now, according to Pro Remodeler, thousands of homeowners who live in homes built during that period are in desperate need of repairs. The publication stated areas where housing construction experienced the greatest growth during the lead up to the recession are the same ones in 2016 that need the most maintenance.
Where Mobile Mini Factors into Construction
The construction industry has rebounded. From single family homes to the apartment boom, new buildings are in the pipelines for many states. Further, renovations are growing in many of the areas where the real estate bubble was at its highest prior to the recession.
Mobile Mini is here to help companies meet the storage challenges of a project.
With mobile storage containers, delicate and valuable materials can be safely secured no matter if a home is being renovated or a new building erected.