From the Wall Street to Main Street, 2017 was a strong year in terms of economic growth. As this fiscal windfall reverberates throughout the economy, its effects are being felt across the real estate market and to the core of the building products industry. While we are enthused about the successes of 2017, the momentum built during the past year has us even more excited for the prospects of 2018. Whether it is the correlating renovation that accompanies the purchase of existing homes or the continuing expansion of new home construction, there are a lot of reasons to be optimistic about the future of the building products industry.
REMODELING AND RENOVATIONS
The surge in real estate has a two-pronged effect on remodeling and renovations, and it is great news all around. On one end of the transaction, we have home sellers putting in sweat equity to make their house more competitive in the market. On the other end, we have new home buyers, eager to transform their new purchase into something more personalized, engaging in remodeling projects. Another factor to consider is a renewed interest for investors to flip properties. While there may be a number of parties responsible for home renovation, it is clear that the flourishing housing market increases the demand for remodeling, which bodes well for the building products industry.
While the rising sales of existing homes is praiseworthy news, there’s nothing better for the building products industry than a surge in new-home construction like we witnessed in 2017. Both building permits issued and privately owned housing completions saw solid increases over 2016 and incredible results in comparison to projections that had been made for the year. What is especially encouraging is the strength with which the year closed in regards to new-home construction. With a slight dip in the third quarter (although still strong performance over projections) the fourth quarter exhibited resiliency, closing out the year on a highly positive note.
LOOKING FORWARD TO 2018
The successes of last year are worth reveling in, but with the strong close to the year, it appears that the best is yet to come. With a combination of economically encouraging legislation and the prospect of a more financially secure situation for many potential homebuyers, 2018 has the potential to stand on the shoulders of the previous year and prove to be even more impressive in terms of new-home construction, remodeling projects and sales of existing homes.
Davalyn Corporation has been serving the building products industry for nearly 30 years and we’ve never been more excited than we are now about the prospects of the coming years. Our substantial experience also informs us that the companies that will be best positioned to leverage the burgeoning economy for their own growth will be those that employ the best talent. With a wealth of experience rivaled only by magnitude of our professional network, Davalyn Corporation is prepared to help your organization make the most of this success. We have the resources and reputation to deliver outstanding talent that can provide immediate and ongoing benefits to your firm.
Related industries: Durables, Building Products, Hardware & Home Improvement